Dorman Products, Inc. (NASDAQ: DORM)

Dorman Products, Inc. is a leading supplier of replacement and upgrade parts for the motor vehicle aftermarket industry, serving a wide range of vehicles including passenger cars, light-, medium-, and heavy-duty trucks, as well as specialty vehicles like utility terrain vehicles (UTVs) and all-terrain vehicles (ATVs). The company designs and engineers a vast array of distinct parts, with approximately 144,000 distinct parts marketed as of December 31, 2025. Dorman Products operates in the motor vehicle aftermarket industry, which is segmented into light-duty, heavy-duty, and powersports sectors, with a combined total addressable market exceeding $165 billion in 2025.

The company generates revenue through the sale of its replacement and upgrade parts, which are sold under various brand names, private-label brands, or in bulk. Primary products include leaf springs, intake manifolds, exhaust manifolds, oil filters and coolers, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation (EGR) coolers, driveshafts, UTV windshields, and complex electronics modules. As of 2025, approximately 76% of Dorman Products' products were sold under brands it owns, with the remainder sold for resale under customers' private labels, other brands, or in bulk. The company's customer base primarily consists of aftermarket retailers, dealers, and national, regional, and local wholesale distributors and specialty markets, with a significant portion of sales occurring in North America, particularly the United States. Additionally, Dorman Products distributes aftermarket parts outside the United States, with sales primarily into Canada and Mexico, and to a lesser extent, Europe, the Middle East, and Australia.

• Light-Duty Vehicle Sector: This segment focuses on passenger cars and light-duty trucks. Dorman Products offers a wide range of replacement and upgrade parts for this sector, catering to both individual consumers performing "do-it-yourself" repairs and upgrades, and professional installers, including individual vehicle repair shops and dealership service departments. The company's products in this segment are sold through retailers, the retail arms of warehouse distributors, local independent parts wholesalers, national parts distributors, and specialized national and regional parts distributors.

• Heavy-Duty Vehicle Sector: This segment is centered on medium- and heavy-duty vehicles. Dorman Products provides replacement parts for this sector, with the largest purchasers being independent distributors, including organizations associated with large buying groups and other distributors, as well as independent component specialists and rebuilders, and auto parts stores. The service work performed on these vehicles is generally completed by end-user businesses that utilize these vehicles in their operations, fleets, and independent garages and distributors.

• Specialty Vehicle Sector: This segment consists of parts for powersport vehicles, such as UTVs and ATVs, for both functional and upgrade accessories as well as replacement parts. Functional and upgrade accessories include parts such as engine performance upgrades, lighting and electronics, storage and cargo, tires and wheels, cabs, roofs and windshields, and other cosmetic parts. Nondiscretionary repair parts consist of brake systems, engine systems, electronics, frame and body parts, and driveline and transmission parts. This sector consists of direct-to-consumer and direct-to-dealer channels through both retail and e-commerce platforms.

Dorman Products holds a strong position within the motor vehicle aftermarket industry, competing on factors including price, product quality, breadth of product line, range of applications, and customer service. The company faces competition from other providers, some of which are divisions and subsidiaries of larger companies with greater financial and other resources. Additionally, Dorman Products competes with original equipment manufacturers (OEMs) who sell replacement parts through their dealerships, as well as some of its current or former suppliers who may supply directly to its customers. The company's competitive advantages include its reputation for quality, customer service, and line profitability, which are significant factors in retailers' and other resellers' decisions to carry its product lines. Dorman Products also benefits from the efficiencies achieved through the ability to order all or part of a complete line of products from one supplier, which may lead retailers and other resellers to prefer purchasing products from fewer but stronger suppliers.

Dorman Products serves a diverse customer base, including aftermarket retailers, dealers, and national, regional, and local wholesale distributors and specialty markets. The company's products are available in customers' retail stores, online, and through dealers and warehouse distributors. As of December 31, 2025, Dorman Products serviced approximately 9,000 active accounts, with two customers individually accounting for more than 10% of net sales and, in the aggregate, accounting for approximately 40% of net sales. The company's customer base spans North America, with a significant focus on the United States, as well as international markets including Canada, Mexico, Europe, the Middle East, and Australia.