COLMAR, PA — Dorman Products, Inc. (NASDAQ: DORM) reported robust financial results for the fourth quarter and full year ended December 31, 2024, showcasing strong sales growth, improved profitability, and significant cash generation. The aftermarket automotive parts manufacturer also presented an optimistic outlook for 2025, driven by its innovation strategy and operational excellence initiatives.
Fourth Quarter and Full Year Performance
For the fourth quarter of 2024, Dorman recorded net sales of $533.8 million, an 8.0% increase compared to $494.3 million in Q4 2023. Gross profit for the quarter rose to $221.7 million, representing 41.5% of net sales, up from 39.3% during the same period last year. Diluted earnings per share (EPS) were $1.77, up 11% year-over-year, while adjusted diluted EPS jumped 40% to $2.20.
Full-year 2024 results were equally impressive. Dorman achieved net sales of $2.0 billion, a 4.1% increase from the previous year. Gross profit for the year climbed to $806.4 million, accounting for 40.1% of net sales, compared to 35.5% in 2023. Diluted EPS saw a 50% increase year-over-year, reaching $6.14, while adjusted diluted EPS was $7.13, a 57% improvement.
“These results, coupled with our asset-light operating model, drove significant cash generation,” said Kevin Olsen, President and CEO of Dorman Products. “Cash from operating activities for the year was $231 million, allowing us to reduce debt by $94 million and return capital to shareholders through the repurchase of $78 million in common stock at an average price of $91.”
Growth Drivers
The Light Duty and Specialty Vehicle segments emerged as key contributors to the company’s strong fourth-quarter performance. Dorman’s innovation strategy, which focuses on introducing new and enhanced products to the market, continues to underpin its sustained growth.
Operating cash flow for 2024 enabled the company to not only reduce its debt but also invest in shareholder returns. Dorman’s disciplined financial management strengthened its balance sheet, ensuring the company remains well-equipped to pursue long-term growth opportunities.
2025 Outlook
Looking ahead, Dorman expects net sales growth in the range of 3% to 5% for 2025. The company projects diluted EPS between $7.00 and $7.30, with adjusted diluted EPS anticipated to fall between $7.55 and $7.85. Dorman remains confident in its ability to deliver long-term value despite potential market uncertainties.
“With our proven business model, ability to navigate dynamic markets, and strengthened balance sheet, we remain well-positioned to deliver long-term growth,” Olsen emphasized.
Positioned for Continued Success
Dorman’s 2024 results highlight the company’s resilience and ability to capitalize on market opportunities while maintaining strong fiscal discipline. Its focus on innovation, operational excellence, and strategic investment positions Dorman for sustained success in 2025 and beyond.
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