Dorman Products, Inc.

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 26, 2026, AND SEPTEMBER 27, 2025

1. Basis of Presentation

As used herein, unless the context requires otherwise, “Dorman,” the “Company,” “we,” “us,” or “our” refers to Dorman Products, Inc. and its subsidiaries. Our ticker symbol on The Nasdaq Stock Market LLC is “DORM.”

The accompanying unaudited condensed consolidated financial statements have been prepared under U.S. generally accepted accounting principles (“GAAP”) for interim financial information and under the rules and regulations of the U.S. Securities and Exchange Commission. However, they do not include all the information and footnotes required by GAAP for a complete set of financial statements. In the opinion of management, all adjustments (comprising only normal, recurring adjustments) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Interest expense and interest income are presented separately in the Condensed Consolidated Statements of Operations and Comprehensive Income. Prior year amounts, which were previously presented net, have been reclassified to conform with the current year presentation, with no impact on income from operations, net income, or earnings per share.

2. Sales of Accounts Receivable

We have entered into several customer-sponsored programs administered by unrelated financial institutions that permit us to sell (factor) certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable, and the related accounts receivable were removed from our Condensed Consolidated Balance Sheets when sold. Sales of accounts receivable under these agreements, and associated factoring costs, which were included in selling, general, and administrative expenses, were as follows:

3. Inventories

Inventories include the cost of material, freight, duties, direct labor, and overhead utilized to process our products and are stated at the lower of cost or net realizable value. Inventories were as follows:

4. Goodwill and Intangible Assets

Goodwill

Goodwill at both September 26, 2026, and December 31, 2025, was $387.3 million. This balance is net of accumulated impairment losses of $56.7 million, all of which were recorded within the Heavy Duty segment.

Intangible Assets

Intangible assets included the following:

Amortization expense was$5.1 million and $5.4 million during the three months ended September 26, 2026, and September 27, 2025, respectively, and $15.5 million and $16.4 million during the nine months ended September 26, 2026, and September 27, 2025, respectively.

5. Debt

During the three months ended March 28, 2026, we borrowed $15.0 million under the revolving credit facility of our credit agreement. The borrowing was repaid during the three months ended June 27, 2026.

During the three months ended June 27, 2026, we entered into a third amendment to our credit agreement to refinance the existing revolving credit facility with a newfive-year revolving credit facility in an aggregate principal amount of $800.0 million, extending the maturity date to June 16, 2031.

The loans under the amended credit agreement are guaranteed by each of the Company’s material wholly owned domestic subsidiaries and are supported by a security interest in substantially all the Company’s and its material wholly owned domestic subsidiaries’ personal property and assets, subject to certain exceptions.

During the three months ended June 27, 2026, we also issued $450.0 million aggregate principal amount of 6.25% senior notes due June 16, 2034 (the "Senior Notes") pursuant to an indenture entered into among the Company, the subsidiary guarantors party thereto, and the trustee. The Senior Notes pay interest semi-annually in June and December of each year, commencing in December 2026.

The proceeds from the issuance of the Senior Notes were utilized (i) to repay our outstanding term loan balance of $431.3 million, as well as accrued interest and fee obligations under our credit agreement, (ii) to pay advisory and other fees in connection with the refinancing transactions, and (iii) for general corporate purposes.

The obligations under the Senior Notes are fully and unconditionally guaranteed by each of the Company’s existing and future wholly owned subsidiaries that is a guarantor or other obligor under the Company’s credit agreement and certain other indebtedness, as further specified in the indenture.

The amended credit agreement and the indenture contain customary representations and warranties, affirmative and negative covenants, and events of default. Additionally, the amended credit agreement contains financial maintenance covenants that require the Company to (i) maintain a consolidated secured net leverage ratio of not more than 3.50 to 1.00 (increasing to 4.00 to 1.00 for the four fiscal quarters following certain acquisitions) and (ii) a consolidated interest coverage ratio of not less than 2.00 to 1.00.

6. Segment and Geographic Information

Segment results are as follows:

In the preceding segment tables, Other segment expenses consist of selling, general, and administrative expenses, including salaries and benefits for product development, research, sales, marketing and administrative functions, facility costs, information technology costs, and other general expenses.

A reconciliation of segment income from operations to consolidated income before income taxes is as follows:

Segment assets are as follows:

The following table presents our net sales by geographic region:

7. Commitments and Contingencies

We are a party to, or otherwise involved in, legal proceedings that arise in the ordinary course of business, including various claims and legal actions involving contracts, employment disputes, competitive practices, intellectual property infringement, product liability claims, and other matters related to the conduct of our business. In the opinion of management, none of the actions, individually or in the aggregate, taking into account relevant insurance coverage, would likely have a material financial impact on the Company, and we believe the range of reasonably possible losses from current matters, taking into account relevant insurance coverage, is immaterial. However, legal matters are subject to inherent uncertainties, and there exists the possibility that the ultimate resolution of any of these matters could have a material adverse impact on the Company’s cash flows, financial position, or results of operations in the period in which any such effects are recorded.

In February 2026, the U.S. Supreme Court ruled against certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). In March 2026, the Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection (“CBP”) to begin the refund process for all importers who were subject to IEEPA duties. We are the importer of record for certain products that were previously subject to tariffs under IEEPA. During the nine months ended September 26, 2026, we recorded refunds of such previously paid tariffs totaling $98.1 million, including a receivable of $2.1 million for amounts that remained uncollected as of September 26, 2026.

We also recognized interest income of $0.2 million and $3.7 million related to the refunds received during the three and nine months ended September 26, 2026, respectively, which is included in Other income, net on the Condensed Consolidated Statements of Operations and Comprehensive Income.

8. Stock-Based Compensation

Restricted Stock Units (“RSUs”)

Compensation cost related to RSU grants was $5.7 million and $3.8 million for the three months ended September 26, 2026, and September 27, 2025, respectively, and $14.9 million and $11.3 million for the nine months ended September 26, 2026, and September 27, 2025, respectively, and was included in selling, general, and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes our RSU activity for the nine months ended September 26, 2026:

As of September 26, 2026, there was $27.8 million of unrecognized compensation cost related to unvested RSU grants that is expected to be recognized over a weighted average period of 1.9 years.

Stock Options

From time to time, we grant stock options to participants in our equity plans. Compensation cost related to stock option grants was not material for the three and nine months ended September 26, 2026, and September 27, 2025.

The following table summarizes our stock option activity for the nine months ended September 26, 2026:

As of September 26, 2026, unrecognized compensation cost related to unvested stock options wasnot material.

In May 2026, our shareholders approved the Dorman Products, Inc. 2026 Omnibus Incentive Plan (the “2026 Plan”), which permits awards to our employees, officers, directors, consultants, and advisors in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and cash-based awards. The 2026 Plan replaced the Dorman Products, Inc. 2018 Stock Option and Stock Incentive Plan.

Employee Stock Purchase Plan ("ESPP")

During the three and nine months ended September 26, 2026, we issued 11,382 shares under the ESPP, compared to 10,216 shares issued under the ESPP during the three and nine months ended September 27, 2025, in each case as part of the semi-annual purchase windows.

9. Earnings Per Share

Basic earnings per share was calculated by dividing our net income by the weighted average number of shares of common stock outstanding during the period. To calculate diluted earnings per share, common stock equivalents are added to the weighted average number of shares of common stock outstanding. Common stock equivalents are calculated using the treasury stock method and are computed based on outstanding stock-based awards.

For the three months ended September 26, 2026, and September 27, 2025, there were approximately 200 shares and 20,000 shares, respectively, and for the nine months ended September 26, 2026, and September 27, 2025, there were approximately 54,000 shares and 62,000 shares, respectively, that were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.

The following table sets forth the computation of basic earnings per share and diluted earnings per share:

10. Common Stock Repurchases

We periodically repurchase, at the then-current market price, and cancel common stock issued to the Dorman Products, Inc. 401(k) Retirement Plan and Trust (the “401(k) Plan”). 401(k) Plan participants can no longer purchase shares of Dorman common stock as an investment option under the 401(k) Plan. Shares are generally purchased by the Company from the 401(k) Plan when participants sell units as permitted by the 401(k) Plan or elect to leave the 401(k) Plan upon retirement, termination, or other reasons. The following table summarizes the repurchase and cancellation of common stock by the Company for the three and nine months ended September 26, 2026, and September 27, 2025:

Separately, we repurchase shares under share repurchase programs authorized by our Board of Directors. Share repurchases may be made from time to time depending on market conditions, share price, share availability, and other factors at the Company’s discretion. The Company is not obligated to acquire a specific number of shares under the programs.

The following table summarizes the repurchase and cancellation of common stock in the three and nine months ended September 26, 2026, and September 27, 2025:

At September 26, 2026, $348.3 million was available for repurchase under the share repurchase program.

During the three and nine months ended September 26, 2026, we recorded $1.9 million of federal excise tax imposed on the fair value of certain stock repurchases, net of issuances, pursuant to the

Inflation Reduction Act of 2022, which was included in Purchase and cancellation of common stock in the Condensed Consolidated Statements of Shareholders' Equity. The excise tax is excluded from both the Total cost of shares repurchased and canceled and the Average price per share in the tables above. We paid $0.9 million of such excise taxes to the federal government on eligible repurchases during the three and nine months ended September 26, 2026, which was included in Purchase and cancellation of common stock in the Condensed Consolidated Statements of Cash Flows.

11. Income Taxes

At September 26, 2026, we had $10.6 million of net unrecognized tax benefits, $9.2 million of which would lower our effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. At September 26, 2026, accrued interest and penalties related to unrecognized tax benefits were $4.7 million.

We file income tax returns in the United States, Canada, China, India, and Mexico. The statute of limitations for tax years before 2022 is closed for U.S. federal income tax purposes. The statute of limitations for tax years before 2017 is closed for the states in which we filed. The statute of limitations for tax years before 2022 is closed for income tax purposes in Canada, China, and India. The statute of limitations for tax years before 2021 is closed for income tax purposes in Mexico.

12. Fair Value Disclosures

The carrying values of financial instruments such as cash and cash equivalents, accounts receivable, accounts payable, and other current assets and liabilities approximate their fair values due to their short-term nature.

The estimated fair value of the Company's Senior Notes was $435.4 million at September 26, 2026. Fair value was determined based on observed market prices for the notes and is classified as a Level 2 fair value measurement.

13. Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The ASU requires additional disclosures about categories of expenses, including, among other things, quantitative disclosures for employee compensation, depreciation, intangible asset amortization, selling expenses, and purchases of inventory. The updated guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. We expect to implement this new standard by its effective date, and do not anticipate that its adoption will have an impact on our results of operations, financial condition, or cash flows.