Slides
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Q2 2026 EARNINGS PRESENTATION AUGUST 4, 2026 DORMAN PRODUCTS, INC.
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Forward - Looking Statements & Non - GAAP Financial Measures FORWARD - LOOKING STATEMENTS 2 NON - GAAP FINANCIAL MEASURES This presentation includes non - GAAP financial measures as defined under the rules of the Securities and Exchange Commission, inc luding Adjusted Gross Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted SG&A Margin, Adjusted Operating Income Margin, Adjusted Diluted Earnings Per Share “EPS”, and Free Ca sh Flow. These non - GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our cash flows or results of oper ati ons. Additionally, these non - GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of these non - GAAP measures to the most directly comparabl e GAAP financial measures are included in this presentation. This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward - looking statements. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates” and similar expressions are used to identify these forward - looking statements. Readers are cautioned not to place undue reliance on those forward - looking statements, which speak only as of the date such statements were made. Such forward - looking statements are based on current expectations that involve known and unknown risks, uncertainties and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: competition in and the evolution of the motor vehicle aftermarket industry; changes in our relationships with, or the loss of, any customers or suppliers; our ability to develop, market and sell new and existing products; our ability to anticipate and meet customer demand; our ability to purchase necessary materials from our suppliers and the impacts of any related logistics constraints; widespread public health pandemics; political and regulatory matters, such as changes in trade policy, the imposition of tariffs and climate regulation; our ability to protect our information security systems and defend against cyberattacks; our ability to protect our intellectual property and defend against any claims of infringement; and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, financial outlook, including guidance, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10 - K and Form 10 - Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward - looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise, except as may be required by applicable law.
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Q2 2026 Highlights Net Sales of $545 million up 0.7% over Q2 2025 Adjusted Operating Margin of 22.3% up 600bps over Q2 2025 Adjusted EBITDA Margin of 26.1% up 710bps over Q2 2025 Adjusted Diluted EPS of $3.08 up 50% over Q2 2025 Operating Cash Flow of $153 million repurchased $47 million of common stock Updated 2026 Guidance * : - Net Sales growth of 3% to 5% - Adjusted Diluted EPS range of $8.50 to $8.80 Note: Adjusted Operating Margin, Adjusted EBITDA Margin, and Adjusted Diluted EPS are non - GAAP figures. See reconciliations of non - GAAP amounts in appendix of this presentation. *See slide 10 for more information on the Company’s guidance, including certain exclusions and assumptions 3 • IEEPA refunds received in Q2’26, positively impacted margins and earnings growth • Tariff structure is more stabilized • Additional cash flow expected to drive medium - to long - term growth • Taking targeted pricing actions given lower ongoing tariff costs Current Business Environment
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$424 $424 $833 $848 18.5% 24.7% 19.2% 19.4% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $900 $950 $1,000 $1,050 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin 4 Light Duty Segment Quarterly Highlights • Net Sales flat with reduced pricing in Q2’26; lower volume compared to strong year - over - year growth of 10% in Q2’25 • Mid - single digit POS growth in Q2’26 • Operating Margin performance more aligned over six - month comparison vs last year Net Sales & Operating Margin Note: Dollar amounts in millions. Market Observations Product Highlight: Ford F - 150 Aluminum Oil Pan • Long - term aftermarket drivers remain positive, with the average age of light duty vehicles now at 12.9 years and vehicle miles traveled increased year - over - year • More DIY - focused categories and channels impacted by higher fuel costs and overall inflation, with DIFM more stable • Lower overall tariff environment leading to lower pricing Patented OE FIX® solution OE plastic part prone to failure Rugged high - pressure diecast aluminum FLAT +2%
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Heavy Duty Segment Quarterly Highlights • Solid Net Sales growth driven by 2025 pricing actions, with wins in certain categories and channels • Comparable Operating Margin performance largely driven by higher net sales leverage • Commercialization and infrastructure investments position HD for long - term growth Note: Dollar amounts in millions. Market Observations Category Highlights: Above - the - Frame Line Expansions • Great Freight Recession continued in Q2’26, with higher fuel costs and general inflation further impacting consumer sentiment • Freight rates rebounding as a result of fewer fleet operators, but no meaningful change in overall trucking mileage or tonnage growth expected in 2026 • OE dealers focused on diversifying revenue and profitability streams with aftermarket repair solutions, as new and used vehicle sales remain soft New - to - the aftermarket solutions Portfolio diversification Expanding offerings for customers $62 $66 $114 $124 0.8% 4.2% 0.3% 2.6% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 $160 $170 $180 $190 $200 $210 Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin Net Sales & Operating Margin +7% +9% 5
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Specialty Vehicle Segment Quarterly Highlights • Net Sales down slightly on lower volume, offset by pricing initiatives in certain categories • Comparable Operating Margin expansion largely driven by improved operating performance • Expanding focus on opportunities outside U.S. Market Observations Product Highlight: CFMOTO Vented Windshield for Z10 • New vehicle sales continued to remain positive, but largely driven by higher end models aimed at more affluent riders, leading to lower attach rate at dealerships • Overall UTV/ATV ridership remain strong, driving elongated repair cycle • Newer OEs entering the market with lower - cost models, providing broader opportunity for aftermarket upgrades New sport line launched by CFMOTO Superior protection with comfort Speed to market a key strength 6 Note: Dollar amounts in millions. $55 $54 $102 $101 17.3% 26.1% 14.0% 18.0% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $100 $105 $110 $115 $120 $125 $130 $135 $140 $145 $150 $155 $160 $165 $170 $175 $180 $185 Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin Net Sales & Operating Margin - 1% FLAT
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$88 $122 $174 $186 16.3% 22.3% 16.6% 17.3% Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin Q2 2026 Performance Highlights Net Sales 7 • Top - line performance driven by the increase in Heavy Duty, offsetting lower volume in Light Duty and Specialty Vehicle segments • Lower tariff rates drove pricing actions, which is expected to continue through 2H’26 • Innovation, sourcing, and speed to market remain core to each segment’s growth Adj. Operating Income • Adjusted Operating Margin expansion driven by IEEPA refunds recognized in the quarter • Heavy Duty and Specialty Vehicle delivered operational improvement • Driving improved margins over the long - term with supplier diversification, productivity and automation initiatives Adj. Diluted EPS • Adjusted Diluted EPS growth driven by IEEPA refunds, which contributed $1.18 in Q2’26 and $0.30 YTD’26 • Lower interest expense on year - over - year debt reduction improved earnings growth • Total diluted shares reduced by 685K from the second quarter of 2025 Note: Dollar amounts in millions. Adjusted Operating Income, Adjusted Operating Income Margin, and Adjusted Diluted EPS are n on - GAAP figures. See reconciliations of non - GAAP amounts in appendix of this presentation. $541 $545 $1,049 $1,073 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980 990 1000 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 1110 1120 1130 1140 1150 1160 1170 1180 1190 1200 1210 1220 1230 1240 1250 1260 1270 1280 1290 1300 Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 +1% $2.06 $3.08 $4.07 $4.64 Q2 - 25 Q2 - 26 YTD - 25 YTD - 26 +2% +38% +7% +50% +14%
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$9 $12 $42 $44 $71 $82 - $8 - $10 - $8 - $8 - $9 Q2-25 Q3-25 Q4-25 Q1-26 Q2 - 26 Cash from Operations IEEPA Refund* Capex Free Cash Flow • IEEPA refund and working capital improvements drove increase in operating cash flow during the quarter • Additional cash on hand and expanded balance sheet capacity provide capital allocation levers to drive long - term growth • Share repurchases of $47 million in Q2’26 − Repurchased 398K shares at an average price of $118 per share − $363 million remaining on authorization 8 Free Cash Flow Note: Dollar amounts in millions. Free Cash Flow is a non - GAAP figure. Figures may not sum due to rounding. *Includes interest received associated with IEEPA refund $0 $2 $34 $35 $144
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New Debt Facility Expands Liquidity Position Leverage & Liquidity 9 Note: As of June 27, 2026. Dollar amounts in millions. Figures may not sum due to rounding. 1 See reconciliation and notes on Adjusted EBITDA in the appendix. Adjusted EBITDA and Total Net Leverage Ratio as presented ma y differ from consolidated EBITDA and Total Net Leverage Ratio as calculated under our credit facility, which could include additional adjustments, limitations, or exclusions. 2 Represents $1.1 million in letters of credit. Net Leverage Liquidity Revolving Credit Facility $ 0 Senior Notes $ 450 Total Revolver Commitment $ 800 Less: Cash and Cash Equivalents ( $ 132 ) Less: Revolver Draw Outstanding 2 ( $ 1 ) Net Debt $ 318 Available Revolver Capacity $ 799 LTM Adjusted EBITDA 1 $ 458 Cash and Cash Equivalents $ 132 Total Net Leverage Ratio 1 0.69x Total Liquidity $ 931
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Updated 2026 Guidance 10 Prior FY 2026 Guidance Updated FY 2026 Guidance (as of 8/3/2026) Net Sales change vs. previous year 7% - 9% 3% - 5% Diluted EPS $7.57 - $7.97 $7.93 - $8.23 Change vs. previous year 14% - 20% 19% - 24% Adjusted Diluted EPS $8.10 - $8.50 $8.50 - $8.80 Change vs. previous year (9)% - (4)% (4)% – (1)% • Guidance includes the expected impact of tariffs enacted as of August 3, 2026. Guidance excludes impacts from potential future tariff changes, acquisitions and divestitures, and additional share repurchases. • Targeting full - year Adjusted Operating Income Margin of 15.5% to 16.5% • Assumes 23.5% effective tax rate Note: Adjusted Diluted EPS and Adjusted Operating Margin are non - GAAP figures. See reconciliation of non - GAAP amounts in the app endix of this presentation. *2026 Adjusted Diluted EPS growth rate of +10% is based on midpoint of $8.20 - $8.50 comparable guidance range, when excluding the IEEPA tariff recovery benefit attributable to Q4’25. $0.30 $1.25 2024 2025 2026 Adjusted Diluted EPS Guidance Tariff Pricing Impact in 2025 IEEPA Recovery Related to Q4'25 Costs Comparable Adjusted Diluted EPS $7.13 $8.50 - $8.80 $8.35 * $7.62 +7% +10% * $8.87
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Q2 2026 Summary Strong earnings growth and cash flow generation in Q2’26 positions us well for the future Long - term outlook remains unchanged, with strong aftermarket demand drivers in place Focused on driving innovation and operational excellence across each segment 11
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Appendix – Non - GAAP Reconciliations
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Reconciliation of One - time IEEPA Tariff Recovery Benefits 13 Reported Recovery Benefit Comparable Reported Recovery Benefit Comparable $ in thousands, except EPS Adjusted Gross Profit Light Duty 201,718 $ (38,646) $ 163,072 $ 355,921 $ (10,194) $ 345,727 $ Heavy Duty 17,160 (1,252) 15,908 31,753 (7) 31,746 Specialty Vehicle 32,347 (4,498) 27,849 53,706 (1,142) 52,564 Consolidated 251,225 $ (44,396) $ 206,829 $ 441,380 $ (11,343) $ 430,037 $ Adjusted Gross Margin Light Duty 47.5% -9.1% 38.4% 42.0% -1.2% 40.8% Heavy Duty 25.9% -1.9% 24.0% 25.6% 0.0% 25.6% Specialty Vehicle 59.9% -8.3% 51.6% 53.1% -1.1% 51.9% Consolidated 46.1% -8.2% 38.0% 41.1% -1.1% 40.1% Adjusted Operating Income Light Duty 104,740 $ (38,646) $ 66,094 $ 164,401 $ (10,194) $ 154,207 $ Heavy Duty 2,775 (1,252) 1,523 3,223 (7) 3,216 Specialty Vehicle 14,108 (4,498) 9,610 18,198 (1,142) 17,056 Consolidated 121,623 $ (44,396) $ 77,227 $ 185,822 $ (11,343) $ 174,479 $ Adjusted Operating Margin Light Duty 24.7% -9.1% 15.6% 19.4% -1.2% 18.2% Heavy Duty 4.2% -1.9% 2.3% 2.6% 0.0% 2.6% Specialty Vehicle 26.1% -8.3% 17.8% 18.0% -1.1% 16.8% Consolidated 22.3% -8.2% 14.2% 17.3% -1.1% 16.3% Adjusted Diluted EPS* Consolidated 3.08 $ (1.18) $ 1.90 $ 4.64 $ (0.30) $ 4.34 $ Three Months Ended 6/27/26 Six Months Ended 6/27/26 *Includes a prorated portion of the interest received as part of the IEEPA refund, which is included in Other income, net on our Consolidated Statements of Operations
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Reconciliation of Adjusted SG&A *Amounts may not add due to rounding. 14 ($ in thousands) 6/27/26 % of Sales* 6/28/25 % of Sales* SG&A expenses (GAAP) 135,008 $ 24.8% 137,032 $ 25.3% Pretax acquisition-related intangible assets amortization (5,173) -0.9% (5,406) -1.0% Pretax acquisition-related transaction and other costs (233) 0.0% (341) -0.1% Pretax reduction in workforce costs — ' — ' (33) 0.0% Adjusted SG&A expenses (Non-GAAP) 129,602 $ 23.8% 131,252 $ 24.3% ($ in thousands) 6/27/26 % of Sales* 6/28/25 % of Sales* SG&A expenses (GAAP) 266,380 $ 24.8% 264,666 $ 25.2% Pretax acquisition-related intangible assets amortization (10,347) -1.0% (10,877) -1.0% Pretax acquisition-related transaction and other costs (475) 0.0% (833) -0.1% Pretax reduction in workforce costs — ' — ' (147) 0.0% Adjusted SG&A expenses (Non-GAAP) 255,558 $ 23.8% 252,809 $ 24.1% Three Months Ended Six Months Ended
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Reconciliation of Adjusted Operating Income 15 *Amounts may not add due to rounding. ($ in thousands) 6/27/26 % of Sales* 6/28/25 % of Sales* Income from operations (GAAP) 116,217 $ 21.3% 82,481 $ 15.2% Pretax acquisition-related intangible assets amortization 5,173 0.9% 5,406 1.0% Pretax acquisition-related transaction and other costs 233 0.0% 341 0.1% Pretax reduction in workforce costs — ' — ' 33 0.0% Adjusted operating income (Non-GAAP) 121,623 $ 22.3% 88,261 $ 16.3% ($ in thousands) 6/27/26 % of Sales* 6/28/25 % of Sales* Income from operations (GAAP) 175,000 $ 16.3% 162,555 $ 15.5% Pretax acquisition-related intangible assets amortization 10,347 1.0% 10,877 1.0% Pretax acquisition-related transaction and other costs 475 0.0% 833 0.1% Pretax reduction in workforce costs — ' — ' 147 0.0% Adjusted operating income (Non-GAAP) 185,822 $ 17.3% 174,412 $ 16.6% Three Months Ended Six Months Ended
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Reconciliation of Adjusted EBITDA *Adjusted EBITDA as presented differs from consolidated EBITDA as calculated under our credit facility, which may include add iti onal adjustments, limitations, or exclusions. 16 ($ in thousands) 6/27/26 6/28/25 6/27/26 6/28/25 Net Income (GAAP) 87,771 $ 58,709 $ 219,302 $ 225,980 $ Add: Interest expense, net 6,311 7,182 26,153 33,460 Provision for income taxes 27,712 18,134 76,928 75,013 Depreciation and amortization 13,909 13,919 55,877 56,259 EBITDA 135,703 $ 97,944 $ 378,260 $ 390,712 $ EBITDA Adjustments Stock-based compensation 5,439 4,524 21,024 16,369 Acquisition-related transaction and other costs 233 341 941 2,523 Write-off of capitalized debt issuance costs 802 — ' 802 — ' Goodwill impairment charge — ' — ' 56,706 — ' Reduction in workforce costs — ' 33 — ' 270 Adjusted EBITDA* 142,177 $ 102,842 $ 457,733 $ 409,874 $ Net sales $ 544,598 $ 540,959 2,155,036 2,086,196 Adjusted EBITDA Margin 26.1% 19.0% 21.2% 19.6% Three Months Ended Twelve Months Ended
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Reconciliation of Adjusted Diluted EPS *Amounts may not add due to rounding. 17 ($ in thousands, except per share amounts) 6/27/26 6/28/25 6/27/26 6/28/25 Net income (GAAP) 87,771 $ 58,709 $ 131,322 $ 116,214 $ Pretax acquisition-related intangible assets amortization 5,173 5,406 10,347 10,877 Pretax acquisition-related transaction and other costs 233 341 475 833 Pretax write-off of capitalized debt issuance costs 802 — ' 802 — ' Pretax reduction in workforce costs — ' 33 — ' 147 Tax adjustment (related to above items) (1,470) (1,403) (2,754) (2,877) Adjusted net income (Non-GAAP) 92,509 $ 63,086 $ 140,192 $ 125,194 $ Diluted earnings per share (GAAP) 2.93 $ 1.91 $ 4.35 $ 3.78 $ Pretax acquisition-related intangible assets amortization 0.17 0.18 0.34 0.35 Pretax acquisition-related transaction and other costs 0.01 0.01 0.02 0.03 Pretax write-off of capitalized debt issuance costs 0.03 — ' 0.03 — ' Pretax reduction in workforce costs — ' 0.00 — ' 0.00 Tax adjustment (related to above items) (0.05) (0.05) (0.09) (0.09) Adjusted diluted earnings per share (Non-GAAP)* 3.08 $ 2.06 $ 4.64 $ 4.07 $ Weighted average diluted shares outstanding 29,995 30,680 30,205 30,744 Three Months Ended Six Months Ended
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Reconciliation of Adjusted Operating Income - Guidance 18 ($ in thousands) Low End % of Sales High End % of Sales Income from operations (GAAP) 319,775 $ 14.6% 346,775 $ 15.5% Pretax acquisition-related intangible assets amortization 20,400 0.9% 20,400 0.9% Pretax acquisition-related transaction and other costs 825 0.0% 825 0.0% Adjusted operating income (Non-GAAP) 341,000 $ 15.5% 368,000 $ 16.5% Year Ending 12/31/2026
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Reconciliation of Adjusted Diluted EPS - Guidance 19 Low End High End Diluted earnings per share (GAAP) 7.93 $ 8.23 $ Pretax acquisition-related intangible assets amortization 0.68 0.68 Pretax acquisition-related transaction and other costs 0.03 0.03 Pretax write-off of capitalized debt issuance costs 0.03 0.03 Tax adjustment (related to above items) (0.17) (0.17) Adjusted diluted earnings per share (Non-GAAP) 8.50 $ 8.80 $ IEEPA refund benefit 0.30 0.30 Comparable adjusted diluted EPS 8.20 $ 8.50 $ Weighted average diluted shares outstanding (in thousands) 30,000 30,000 Year Ending 12/31/2026