Slides
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Q3 2026 EARNINGS PRESENTATION OCTOBER 27, 2026 DORMAN PRODUCTS, INC.
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Forward - Looking Statements & Non - GAAP Financial Measures FORWARD - LOOKING STATEMENTS 2 GAAP and 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. Year - to - date figures refer to totals for the nine - month period ending September 26, 2026. 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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Q3 2026 Highlights Net Sales of $562 million up 3.3% over Q3 2025 Adjusted Operating Margin of 15.8% down 470bps from Q3 2025 Adjusted EBITDA Margin of 18.5% down 460bps from Q3 2025 Adjusted Diluted EPS of $2.08 down 21% from Q3 2025 Operating Cash Flow of $65 million repurchased $15 million of common stock Updated 2026 Guidance * : - Net Sales growth of approximately 2% to 3% - Adjusted Diluted EPS range of $8.50 to $8.70 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
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$430 $444 $1,264 $1,292 23.7% 18.5% 20.7% 19.1% $0 $500 $1,000 $1,500 $2,000 $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 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 $1,850 $1,900 $1,950 $2,000 $2,050 $2,100 $2,150 $2,200 Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin 4 Light Duty Segment Quarterly Highlights • Solid Net Sales growth driven by higher volume from new product and category wins, partially offset by lower pricing • POS aligned with net sales growth in the quarter • Operating Income Margins impacted by timing of tariff - related pricing, without the higher tariff - related costs in Q3’25 Net Sales & Operating Margin Note: Dollar amounts in millions. Market Observations Product Highlight: 4WD Locking Hub Actuator • Vehicle miles traveled continued to increase year - over - year, despite higher fuel prices throughout the quarter • DIY consumers impacted by inflation; DIFM - focused business more stable • Light duty trucks and SUV’s making up greater portion of prime VIO, driving long - term growth in average vehicle age and higher average selling price opportunity OE FIX® solution Broad application coverage Upgraded diaphragm material +3% +2%
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Heavy Duty Segment Quarterly Highlights • Net Sales growth driven by higher volume and pricing in certain categories and channels • Operating Income Margin performance impacted by timing of higher tariff and shipping costs in the quarter • Improved commercialization structure expected to drive increased activity across channels Note: Dollar amounts in millions. Market Observations Product Highlight: Windshield Wiper System • Freight pressures continued in Q3’26, with higher fuel costs creating additional challenges in the trucking market • Capacity continued to compress as diesel prices weighed on independent fleet operators – early signs of stabilization in freight tonnage • OE dealers continue to utilize aftermarket repair solutions in service centers New - to - the aftermarket solution Above the frame category expansion Expanding opportunities with OE dealers $63 $66 $177 $190 4.5% 0.0% 1.8% 1.7% $0 $50 $100 $150 $200 $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 Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin Net Sales & Operating Margin +5% +8% 5
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Specialty Vehicle Segment Quarterly Highlights • Net Sales up on portfolio expansion and pricing initiatives in certain categories • Operating Income Margin improvement largely driven by pricing actions, partially offset by higher shipping and commodity costs • New product development strategy expanding non - discretionary portfolio, especially for utility vehicles Market Observations Product Highlight: CFMOTO Hard Cab Enclosure • Strong new UTV vehicle sales in the quarter, with significant growth in work - related utility vehicles and cab units • Positive demand for repair and maintenance solutions as riders continuing to hold onto their vehicles longer • Higher fuel prices impacting enthusiast activity, as total cost to trailer and ride vehicles has increased Protection from dust, debris & elements Durable abrasion - resistant materials BreezeRite Vents for rider comfort 6 Note: Dollar amounts in millions. $50 $52 $152 $153 12.8% 13.1% 13.6% 16.3% $0 $50 $100 $150 $200 $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 $190 $195 $200 $205 $210 $215 $220 $225 $230 $235 $240 Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 Net Sales Operating Income Margin Net Sales & Operating Margin +3% +1%
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$111 $89 $286 $275 20.5% 15.8% 18.0% 16.8% Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 Adj. Op Inc. Adj. Op Inc. Margin Q3 2026 Performance Highlights Net Sales 7 • Top - line growth driven by solid performance across each business segment • Non - discretionary portfolio enabling growth, despite challenging market dynamics • Remain focused on improving innovation and speed - to - market in each segment Adj. Operating Income • Adjusted Operating Income lower year - over - year due to timing of tariff pricing and associated costs in Q3’25 • Higher shipping costs impacting segment margins • Supplier diversification, productivity and automation initiatives driving cost savings Adj. Diluted EPS • Adjusted Diluted EPS lower year - over - year in line with operating performance • Lower other income and higher tax rate offset by reduced share count • Total diluted shares reduced by 922K from the third 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. $544 $562 $1,592 $1,635 $- $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 $1,000 $1,010 $1,020 $1,030 $1,040 $1,050 $1,060 $1,070 $1,080 $1,090 $1,100 $1,110 $1,120 $1,130 $1,140 $1,150 $1,160 $1,170 $1,180 $1,190 $1,200 $1,210 $1,220 $1,230 $1,240 $1,250 $1,260 $1,270 $1,280 $1,290 $1,300 $1,310 $1,320 $1,330 $1,340 $1,350 $1,360 $1,370 $1,380 $1,390 $1,400 $1,410 $1,420 $1,430 $1,440 $1,450 $1,460 $1,470 $1,480 $1,490 $1,500 $1,510 $1,520 $1,530 $1,540 $1,550 $1,560 $1,570 $1,580 $1,590 $1,600 $1,610 $1,620 $1,630 $1,640 $1,650 $1,660 $1,670 $1,680 $1,690 $1,700 $1,710 $1,720 $1,730 $1,740 $1,750 $1,760 $1,770 $1,780 $1,790 $1,800 $1,810 $1,820 $1,830 $1,840 $1,850 $1,860 $1,870 $1,880 $1,890 $1,900 Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 +3% $2.62 $2.08 $6.70 $6.73 Q3 - 25 Q3 - 26 YTD - 25 YTD - 26 +3% - 20% - 4% - 21% FLAT
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$12 $42 $44 $71 $47 $82 $18 - $10 - $8 - $8 - $9 - $8 Q3-25 Q4-25 Q1-26 Q2 - 26 Q3 - 26 Cash from Operations IEEPA Refund* Capex Free Cash Flow • Working capital improvements drove core operating cash flow increase year - over - year • Free cash flow slightly lower sequentially due to reduced factoring volume • $15 million in share repurchases during Q3’26: − Repurchased 115K shares at an average price of $127 per share − $348 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 $2 $34 $35 $144 $57
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New Debt Facility Expands Liquidity Position Leverage & Liquidity 9 Note: As of September 26, 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 ( $ 167 ) Less: Revolver Draw Outstanding 2 ( $ 1 ) Net Debt $ 283 Available Revolver Capacity $ 799 LTM Adjusted EBITDA 1 $ 436 Cash and Cash Equivalents $ 167 Total Net Leverage Ratio 1 0.65x Total Liquidity $ 966
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Updated 2026 Guidance 10 Prior FY 2026 Guidance Updated FY 2026 Guidance (as of 10/26/2026) Net Sales change vs. previous year 3% - 5% 2% - 3% Diluted EPS $7.93 - $8.23 $7.95 - $8.15 Change vs. previous year 19% - 24% 20% - 23% Adjusted Diluted EPS $8.50 - $8.80 $8.50 - $8.70 Change vs. previous year (4)% – (1)% (4)% – (2)% • Guidance includes the expected impact of tariffs enacted as of Oct. 26, 2026. Guidance excludes impacts from potential future tariff changes, acquisitions and divestitures, and additional share repurchases. • Targeting full - year Adjusted Operating Income Margin of 16% to 16.5% • Assumes full - year effective tax rate of 23.5% to 24% Note: Adjusted Diluted EPS and Adjusted Operating Income Margin are non - GAAP figures. See reconciliation of non - GAAP amounts in the appendix of this presentation. *2026 Adjusted Diluted EPS growth rate of +9% is based on midpoint of $8.20 - $ 8. 4 0 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 - $8.70 $8.30 * $7.62 +7% +9% * $8.87
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Q3 2026 Summary Solid performance in the quarter, with topline growth across each business segment Strong balance sheet positions us well to make strategic investments in the business Remain focused on long - term strategy to drive shareholder value 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 Adjusted Gross Profit Light Duty 538,541 $ (10,194) $ 528,347 $ Heavy Duty 45,407 (7) 45,400 Specialty Vehicle 78,622 (1,142) 77,480 Consolidated 662,570 $ (11,343) $ 651,227 $ Adjusted Gross Margin Light Duty 41.7% -0.8% 40.9% Heavy Duty 23.9% 0.0% 23.9% Specialty Vehicle 51.4% -0.7% 50.6% Consolidated 40.5% -0.7% 39.8% Adjusted Operating Income Light Duty 246,406 $ (10,194) $ 236,212 $ Heavy Duty 3,190 (7) 3,183 Specialty Vehicle 25,004 (1,142) 23,862 Consolidated 274,600 $ (11,343) $ 263,257 $ Adjusted Operating Margin Light Duty 19.1% -0.8% 18.3% Heavy Duty 1.7% 0.0% 1.7% Specialty Vehicle 16.3% -0.7% 15.6% Consolidated 16.8% -0.7% 16.1% Adjusted Diluted EPS* Consolidated 6.73 $ (0.30) $ 6.43 $ Nine Months Ended 9/26/26 *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 Gross Margin *Amounts may not add due to rounding. 14 ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* Gross profit (GAAP) $ 221,598 39.4% $ 241,427 44.4% Pretax acquisition-related transaction and other costs (408) -0.1% — ' — ' Adjusted gross profit (Non-GAAP) $ 221,190 39.4% $ 241,427 44.4% ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* Gross profit (GAAP) 662,978 $ 40.5% 668,648 $ 42.0% Pretax acquisition-related transaction and other costs (408) -0.0% — ' — ' Adjusted gross profit (Non-GAAP) 662,570 $ 40.5% 668,648 $ 42.0% Three Months Ended Nine Months Ended
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Reconciliation of Adjusted SG&A *Amounts may not add due to rounding. 15 ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* SG&A expenses (GAAP) 138,660 $ 24.7% 135,677 $ 25.0% Pretax acquisition-related intangible assets amortization (5,069) -0.9% (5,442) -1.0% Pretax acquisition-related transaction and other costs (353) -0.1% (286) -0.1% Pretax facility consolidation costs (826) -0.1% — ' — ' Adjusted SG&A expenses (Non-GAAP) 132,412 $ 23.6% 129,949 $ 23.9% ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* SG&A expenses (GAAP) 405,040 $ 24.8% 400,343 $ 25.1% Pretax acquisition-related intangible assets amortization (15,416) -0.9% (16,319) -1.0% Pretax acquisition-related transaction and other costs (828) -0.1% (1,119) -0.1% Pretax facility consolidation costs (826) -0.1% — ' — ' Pretax reduction in workforce costs — ' — ' (147) -0.0% Adjusted SG&A expenses (Non-GAAP) 387,970 $ 23.7% 382,758 $ 24.0% Three Months Ended Nine Months Ended
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Reconciliation of Adjusted Operating Income 16 *Amounts may not add due to rounding. ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* Income from operations (GAAP) 82,938 $ 14.8% 105,750 $ 19.4% Pretax acquisition-related intangible assets amortization 5,069 0.9% 5,442 1.0% Pretax acquisition-related transaction and other costs (55) -0.0% 286 0.1% Pretax facility consolidation costs 826 0.1% — ' — ' Adjusted operating income (Non-GAAP) 88,778 $ 15.8% 111,478 $ 20.5% ($ in thousands) 9/26/26 % of Sales* 9/27/25 % of Sales* Income from operations (GAAP) 257,938 $ 15.8% 268,305 $ 16.8% Pretax acquisition-related intangible assets amortization 15,416 0.9% 16,319 1.0% Pretax acquisition-related transaction and other costs 420 0.0% 1,119 0.1% Pretax facility consolidation costs 826 0.1% — ' — ' Pretax reduction in workforce costs — ' — ' 147 0.0% Adjusted operating income (Non-GAAP) 274,600 $ 16.8% 285,890 $ 18.0% Three Months Ended Nine 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) 9/26/26 9/27/25 9/26/26 9/27/25 Net income (GAAP) 59,175 $ 76,420 $ 190,497 $ 192,634 $ Pretax acquisition-related intangible assets amortization 5,069 5,442 15,416 16,319 Pretax acquisition-related transaction and other costs (55) 286 420 1,119 Pretax facility consolidation costs 826 — ' 826 — ' Pretax bargain purchase gain (1,457) — ' (1,457) — ' Pretax write-off of capitalized debt issuance costs — ' — ' 802 — ' Pretax reduction in workforce costs — ' — ' — ' 147 Tax adjustment (related to above items) (1,393) (1,391) (4,147) (4,268) Adjusted net income (Non-GAAP) 62,165 $ 80,757 $ 202,357 $ 205,951 $ Diluted earnings per share (GAAP) 1.98 $ 2.48 $ 6.33 $ 6.26 $ Pretax acquisition-related intangible assets amortization 0.17 0.18 0.51 0.53 Pretax acquisition-related transaction and other costs (0.00) 0.01 0.01 0.04 Pretax facility consolidation costs 0.03 — ' 0.03 — ' Pretax bargain purchase gain (0.05) — ' (0.05) — ' Pretax write-off of capitalized debt issuance costs — ' — ' 0.03 — ' Pretax reduction in workforce costs — ' — ' — ' 0.00 Tax adjustment (related to above items) (0.05) (0.05) (0.14) (0.14) Adjusted diluted earnings per share (Non-GAAP)* 2.08 $ 2.62 $ 6.73 $ 6.70 $ Weighted average diluted shares outstanding 29,860 30,782 30,088 30,757 Three Months Ended Nine Months Ended
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Reconciliation of Adjusted Operating Income - Guidance 18 *Amounts may not add due to rounding. ($ in thousands) Low End % of Sales* High End % of Sales* Income from operations (GAAP) 325,325 $ 15.0% 340,025 $ 15.5% Pretax acquisition-related intangible assets amortization 20,400 0.9% 20,400 0.9% Pretax acquisition-related transaction and other costs 925 0.0% 925 0.0% Pretax facility consolidation costs 850 0.0% 850 0.0% Adjusted operating income (Non-GAAP) 347,500 $ 16.0% 362,200 $ 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) 7.95 $ 8.15 $ Pretax acquisition-related intangible assets amortization 0.68 0.68 Pretax acquisition-related transaction and other costs 0.04 0.04 Pretax facility consolidation costs 0.03 0.03 Pretax bargain purchase gain (0.05) (0.05) Pretax write-off of capitalized debt issuance costs 0.03 0.03 Tax adjustment (related to above items) (0.18) (0.18) Adjusted diluted earnings per share (Non-GAAP) 8.50 $ 8.70 $ IEEPA refund benefit 0.30 0.30 Comparable adjusted diluted EPS 8.20 $ 8.40 $ Weighted average diluted shares outstanding (in thousands) 30,000 30,000 Year Ending 12/31/2026