Business2 min
Dorman Products CEO Kevin Olsen: Car Parts Maker Eyes 40% Margin, Deals
At an automotive symposium, the replacement-parts supplier said it hunts down parts that fail, sees a strong acquisition pipeline, and expects steady profitability as 2026 closes.
Dorman Products told investors on Tuesday, 3 November 2026, that it expects a gross margin of about 40% as it exits the year. Speaking at the 50th Annual Automotive Symposium, management called that a normal long-term level, not a peak and not a floor.
Why should a driver care? Dorman makes the replacement parts that keep older cars on the road. The company reports roughly $2 billion in annual sales, about 150,000 unique products and more than 200 product categories. If you have ever had a repair shop fix something the carmaker no longer sold, you know the niche.
CEO Kevin Olsen described the company's edge in plain terms: it spots parts that tend to break and designs a replacement before the aftermarket offers one. Dorman calls these launches "aftermarket exclusives." Its idea pipeline draws on a council of 4,000 independent repair technicians, daily shop visits across North America, a technician support line, online repair forums, dealer purchasing patterns and customer reports of parts they could not find. Each idea must clear a return-on-investment test before launch.
The business leans heavily on cars and light trucks, which make up about 80% of sales. Commercial and heavy-duty trucks add about 10%, and specialty vehicles such as side-by-sides and ATVs account for the other 10%. Dorman's sweet spot is vehicles aged 7 to 14 years, when warranties lapse and owners turn to independent shops. Major sellers include GPC, AutoZone, O'Reilly and Advance Auto Parts, plus warehouse distributors.
Management sees the most room to grow outside light-duty. It compared heavy-duty to the light-duty aftermarket of 30 to 40 years ago, with original equipment makers still holding a large share. Dorman eyes engine, aftertreatment, emissions and cab parts there. Specialty vehicles came into the fold with the 2023 SuperATV acquisition, and the company calls that market fragmented and ripe for consolidation.
The mood on deals stood out. Management said its acquisition pipeline is the strongest in eight or nine years, helped by more realistic seller pricing and clearer visibility on tariffs. Dorman also said it is managing tariffs, inflation and shifting demand through pricing moves, productivity work and a diversified manufacturing base.
The mixed picture for customers: demand from professional repair shops remains solid, but do-it-yourself sales face pressure from weaker consumer spending and an aging vehicle base. For shoppers, that suggests more people are handing repairs to mechanics rather than reaching for the toolbox.
Read the original report on Investing.com.
