MPAA

This article first appeared on GuruFocus. Net Sales: $168 million for the fiscal first quarter ended June 30, 2026, impacted by the timing of orders. Gross Margin: 16.2%, compared with 18% a year earlier; impacted by non-cash expenses of 2.4% and one-time items of 1.6%. Excluding these items, gross margin was 20.2%. Foreign Exchange Impact: Unfavorable impact of approximately 2% ($3.5 million) due to the weakening of the US dollar versus the Mexican peso. Cash Flow from Operating Activities: Used $11.3 million in the first quarter, impacted by working capital use from an inventory ramp-up for new business. Net Bank Debt: $99.7 million as of June 30, 2026, with a net bank debt-to-EBITDA ratio of 1.26. Liquidity: Total cash and availability of approximately $112.4 million as of June 30, 2026. Share Repurchases: Repurchased 129,523 shares for $1.9 million at an average price of $14.98 in the fiscal first quarter. EBITDA: $60 million for the 12 months ended June 30, 2026; $79.1 million before the impact of non-cash and one-time cash expenses. Fiscal 2027 Guidance: Net sales expected to increase between 7.5% and 10.2% year-over-year, representing net sales of $780 million to $800 million; operating income expected between $86 million and $91 million; EBITDA expected between $95 million and $100 million. Warning! GuruFocus has detected 4 Warning Sign with MPAA. Is MPAA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motorcar Parts of America Inc (NASDAQ:MPAA) reaffirmed its fiscal 2027 guidance, expecting net sales growth of 7.5% to 10.2% year-over-year, with net sales between $780 million and $800 million. The acquisition of Centric Brake Brands is expected to drive significant growth, with the brand previously generating approximately $400 million in gross annualized sales and strong customer demand. The company is benefiting from favorable industry trends, including the average age of US light vehicles rising to 13 years and the number of vehicles on the road increasing to 289 million, boosting demand for non-discretionary aftermarket parts. Gross margin, excluding non-cash and one-time items, was 20.2% in the fiscal first quarter, and the company expects further margin improvements from increased sales, cost reductions, and operational efficiencies. The company has strong liquidity with total cash and availability of approximately $112.4 million and a low net bank debt-to-EBITDA ratio of 1.26, supported by a renewed credit facility extended to August 2031. Fiscal first quarter net sales of $168 million were impacted by timing of orders, leading to lower-than-expected revenue for the period. Gross margin declined to 16.2% in the fiscal first quarter from 18% a year earlier, impacted by non-cash expenses, one-time items, and unfavorable foreign exchange rates. The weakening of the US dollar versus the Mexican peso negatively impacted gross margin by approximately $3.5 million, or 2%. The company used $11.3 million in cash from operating activities in the fiscal first quarter due to working capital needs from an inventory ramp-up for new business. The timing of new business commitments has been somewhat delayed as customers are taking advantage of liquidated inventory purchased from a previous supplier, impacting the ramp-up of sales. Q: What is the company's outlook for fiscal 2027, and what are the key drivers of growth?A: Selwyn Joffe, Chairman, President and CEO, reaffirmed that the company is on target to meet its fiscal 2027 expectations despite anticipated first-quarter headwinds. Confidence is bolstered by numerous new sales commitments, business developments, and opportunities phasing in throughout the year, some of which are enhanced by a changing competitive landscape. The company expects net sales to increase between 7.5% and 10.2% year-over-year, reaching $780 million to $800 million, with operating income between $86 million and $91 million and EBITDA between $95 million and $100 million. Q: Can you provide more details on the recently announced Centric Brake Brands acquisition and its strategic significance?A: Selwyn Joffe highlighted that the acquisition of Centric Brake Brands is a major strategic move to expand its position in brake-related product categories. Preliminary customer feedback indicates pent-up demand and confidence in the brand, which is known for its original brake pad formulations and best-in-class catalog accuracy. At its peak, Centric generated approximately $400 million in gross annualized sales. The company expects to relaunch the brand by the current fiscal year-end, leveraging MPA's manufacturing, engineering, and cataloging capabilities to drive strong growth and long-term sustainability. Q: What were the primary factors impacting gross margin in the first quarter, and what is the outlook for margin improvement?A: David Lee, CFO, explained that gross margin was 16.2% in the first quarter, impacted by non-cash expenses of 2.4% and one-time items of 1.6%. Excluding these, gross margin was 20.2%. The margin was also negatively impacted by unfavorable foreign exchange rates of approximately $3.5 million due to the weakening of the US dollar versus the Mexican peso and lower sales due to timing of orders. For fiscal 2027, the company expects margin accretion from increased sales, over-absorption, cost reductions, tariff mitigation initiatives, and better pricing for scrap sales. Q: How is the company's cash flow and balance sheet positioned, and what is the debt leverage?A: David Lee reported that the company used $11.3 million in cash from operating activities in the first quarter due to an inventory ramp-up for new business. Total cash and availability was approximately $112.4 million as of June 30, 2026. Net bank debt was $99.7 million, resulting in a net bank debt-to-EBITDA ratio of 1.26 based on EBITDA of $79.1 million before non-cash and one-time expenses. The company recently renewed its revolver credit facility, extending the maturity date to August 2031. Q: What is the company's strategy regarding its EV emulator business?A: David Lee stated that the EV emulator business is a non-core asset, and the company is continuing to explore strategic alternatives to capitalize on its proprietary industry-leading technology, including a state-of-the-art next-generation emulator. While exploring these alternatives, the company continues to secure prestigious new OE customer commitments for the emulator business. Q: What are the key market dynamics supporting the company's growth outlook?A: Selwyn Joffe highlighted that the average age of US light vehicles has risen to approximately 13 years, and the number of vehicles on the road has climbed to 289 million. The US light-duty aftermarket is projected to grow 5.2% in 2026 and is forecasted to exceed $500 billion by 2029. New vehicle affordability remains a constraint, with the average transaction price exceeding $50,000, reinforcing consumers' tendency to maintain and repair existing vehicles, which supports long-term demand for non-discretionary aftermarket parts. Q: Can you elaborate on the company's heavy-duty rotating electrical business and its operational improvements?A: Selwyn Joffe noted that the company is leveraging its reputation in the heavy-duty market and focusing on enhancing operating efficiencies and margins. The relocation of heavy-duty operations to Mexico from Canada, which began in late fiscal 2026, is near completion and is expected to provide further opportunities for efficiency gains. Industry reports indicate fleet operators are holding on to vehicles longer, which bodes well for the company's ability to supply dependable replacement parts. Q: What is the company's expectation for new business commitments and annualized sales growth?A: David Lee stated that current guidance includes new business commitments expected to ramp up in the second half of the fiscal year, though timing has been impacted by customers using liquidated inventory from a previous supplier. The company expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, which is not included in the current guidance due to timing uncertainty. Annualized net sales are expected to exceed $900 million by the end of fiscal 2027. Q: How is the company addressing working capital and inventory management?A: David Lee explained that the company is focused on neutralizing working capital through customer product demand planning, enhanced inventory management, and extending vendor payment terms, including growing its supply chain finance program. These initiatives are expected to support positive cash flow generation and reduce net bank debt. Q: What is the company's approach to share repurchases?A: David Lee reported that the company repurchased 129,523 shares for $1.9 million at an average price of $14.98 in the first quarter. The company has $20.1 million remaining under its current authorized share repurchase program and remains committed to further opportunities to increase share repurchases to enhance shareholder value. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company Reaffirms Full-Year Guidance; Brake-Related Products Expected to Gain Momentum Throughout Fiscal Year LOS ANGELES, August 10, 2026--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported financial results for its fiscal 2027 first quarter ended June 30, reflecting timing of orders, with the company still on target to meet its expectations for the full year. Positive Drivers: Reaffirms fiscal 2027 net sales guidance between $780 million and $800 million and operating income between $86 million and $91 million, excluding certain non-cash and one-time expenses. Expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, with annualized net sales to be more than $900 million by the end of fiscal 2027, as referenced in the fiscal year-end release. Significant new business commitments. Additional opportunities are expected from the Centric Parts brand relaunch. Increasing utilization of brake-related capacity to support margin accretion. Three-Month Results Net sales for the first quarter of fiscal 2027 were $168.0 million, compared with $188.4 million in the prior-year period, consistent with the company's expectations. The company is reaffirming its fiscal 2027 guidance. The year-over-year decline in net sales was primarily attributable to the anticipated timing of customer orders. In addition, certain new business opportunities were temporarily impacted as customers took advantage of inventory liquidations associated with the bankruptcy of a competitor. The company believes this dynamic has begun to reverse. Net sales during the quarter were also delayed by the planned strategic relocation of the company's Canadian heavy-duty operations to its manufacturing facilities in Mexico. Gross profit for the fiscal 2027 first quarter was $27.2 million compared with $33.9 million a year earlier. Gross margin for the same period was 16.2 percent compared with 18.0 percent a year ago. Gross margin was impacted by non-cash expenses of 2.4 percent and one-time items of 1.6 percent as detailed in Exhibit 2. Excluding these non-cash expenses and certain one-time cash items, gross margin was 20.2 percent. In addition, the company noted that gross margin was negatively impacted by approximately 2 percent, or $3.5 million, due to foreign currency fluctuations. Operating income for the fiscal 2027 first quarter was $3.5 million compared with $20.1 million in the prior year. Operating income was impacted by non-cash expenses of $4.7 million, and one-time items of $3.0 million as detailed in Exhibit 4. Operating income for the prior year benefited from non-cash items of $3.5 million, and partially offset by one-time cash expenses of $1.4 million, as detailed in Exhibit 4. Excluding these non-cash and certain one-time cash items, operating income was $11.2 million, which includes the $3.5 million unfavorable impact due to foreign currency fluctuations noted above, compared with $18.0 million in the prior year period. Interest expense for the fiscal 2027 first quarter decreased by $768,000 to $12.0 million from $12.8 million a year ago, primarily due to lower sales which resulted in lower utilization of accounts receivable discount programs. Net loss for the fiscal 2027 first quarter was $13.4 million, or $0.71 per share, compared with net income of $3.0 million, or $0.15 per diluted share, for the prior year. Net loss was impacted by non-cash expenses of $4.6 million, or $0.25 per share, and one-time items of $2.3 million, or $0.12 per share, as detailed in Exhibit 1, and other items noted above. "We remain confident about our ability to achieve our annual guidance, notwithstanding some expected sales head winds that we and the industry experienced in the first quarter," said Selwyn Joffe, chairman, president and chief executive officer. He reemphasized the company’s significant new business commitments and opportunities in North America -- supported by strength across all product lines, in particular the additive Centric Parts brake business with estimated historical gross sales as high as $400 million at the supplier level. "We have received considerable customer interest in Centric Parts since our recent announcement," Joffe added. Joffe highlighted the company recently announced the renewal of its loan agreement and extension of the maturity date of the revolver credit facility to August 2031 led by PNC Bank, N.A. The renewal recognizes the company’s milestones, solid position within the automotive aftermarket and management’s commitment to strategic growth and profitability. After share repurchases of $1.9 million for the fiscal 2027 first quarter and the recent purchase of Centric Parts brake brands, net bank debt was $99.7 million – reflecting a revolver loan of $118.8 million less cash of $19.1 million at June 30, 2026. Share Repurchase During the fiscal 2027 first quarter, the company repurchased 129,523 shares for $1.9 million at an average share price of $14.98 under its current authorization program. The company has $20.1 million remaining to repurchase shares under its current authorized share repurchase program. The company anticipates opportunities to build shareholder value through sales gains, enhanced profitability and strong cash generation. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company’s financial results and operations. The call will be open to all interested investors either through a live Web broadcast via the company’s investor relations site at www.motorcarparts.com and the tab Events and Presentations or by calling (833) 461-5787 (domestic). Meeting ID 406 025 397. Participants are encouraged to pre-register for the conference call to receive call details and faster access to the event. A listing of dial-in numbers for international participants is available via: https://help.events.q4inc.com/eahc/international-dial-in-numbers. For those who are not available to listen to the live broadcast, a replay of the call will be archived on Motorcar Parts of America’s investor relations site www.motorcarparts.com for a seven-day period. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, sales growth, margin improvement, operating efficiencies, customer demand, new business opportunities, capacity utilization, working capital, liquidity, debt levels, cash flow, strategic initiatives, and market conditions. These statements are based on current expectations, estimates, forecasts, and assumptions and are not guarantees of future performance. Actual results may differ materially from those expressed or implied by these forward-looking statements due to risks and uncertainties, including changes in customer ordering patterns, customer concentration, competitive conditions, supply-chain constraints, inflation, tariffs, interest rates, credit availability, labor and production costs, inventory levels, operational execution, macroeconomic conditions, and the other risks described in the company’s most recent Form 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking statements, except as required by law. Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three months ended June 30, 2026 and 2025. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company’s financial statements prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810225966/en/ Contacts Gary S. MaierVice President, Corporate Communications & IR(310) 972-5124

Interested in Motorcar Parts of America, Inc.? Here are five stocks we like better. Fiscal 2027 guidance was reaffirmed despite first-quarter sales of $168 million being affected by customer order timing. The company continues to target $780 million–$800 million in net sales, $86 million–$91 million in operating income and $95 million–$100 million in EBITDA. The acquisition of Centric Parts brake brands is expected to support growth, with product relaunches planned by fiscal year-end. Management also expects new customer commitments and brake-category expansion to contribute during the second half of the year. First-quarter gross margin declined to 16.2% from 18% due to non-cash and one-time expenses, unfavorable foreign exchange and lower volume. The company is pursuing cost reductions, operational relocations and efficiency initiatives while managing $99.7 million in net bank debt and continuing share repurchases. 2 Small-Caps With Large-Cap Potential Motorcar Parts of America (NASDAQ:MPAA) reaffirmed its fiscal 2027 outlook after reporting first-quarter sales that were affected by the timing of customer orders, while management pointed to new business commitments, brake-category expansion and operating-efficiency efforts as drivers for the rest of the year. For the fiscal first quarter ended June 30, 2026, the automotive aftermarket parts supplier reported net sales of $168 million. Chief Financial Officer David Lee said sales were impacted as expected by order timing, but the company expects higher sales volume, cost reductions and improved efficiency to support results as the year progresses. → MarketBeat Week in Review – 08/03 - 08/07 Here’s What Happens When a Stock is Removed from an Index The company maintained its fiscal 2027 guidance for net sales of $780 million to $800 million, representing year-over-year growth of 7.5% to 10.2%, excluding certain non-recurring items. It also reaffirmed expected operating income of $86 million to $91 million and EBITDA of $95 million to $100 million. Chairman, President and CEO Selwyn Joffe said the company remains on track to meet its fiscal-year expectations despite first-quarter industry headwinds. He cited new customer commitments and opportunities expected to phase in during fiscal 2027, including the company’s recently announced acquisition of Centric Parts brake brands. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Motorcar Parts expects to relaunch the Centric product lines by the end of the current fiscal year. Joffe said preliminary customer feedback has indicated demand for the brand, which he described as having a history of consumer satisfaction, catalog accuracy and established brake-pad formulations. “We are excited to bring these customers the original magic sauce formulation they loved, reunited with their recognized brand,” Joffe said. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War At its peak, Centric generated approximately $400 million in gross annualized sales, according to Joffe. He said the acquisition complements Motorcar Parts’ multi-year effort to expand in brake-related products, which have already become a second major category alongside its rotating electrical business. Management also cited aging vehicles and the growing U.S. vehicle population as favorable aftermarket demand factors. Joffe said the average age of U.S. light vehicles has increased to about 13 years, from 12.6 years in 2024, while vehicles on the road rose to 289 million from 286 million a year earlier. First-quarter gross margin was 16.2%, compared with 18% a year earlier. Lee said the result included non-cash expenses equal to 2.4% of sales and one-time items equal to 1.6%. Excluding those items, gross margin was 20.2%. Gross margin was also affected by approximately $3.5 million, or about 2%, in unfavorable foreign-exchange effects from a weaker U.S. dollar relative to the Mexican peso, as well as lower sales volume tied to order timing. Lee said the company expects increased sales, greater overhead absorption, cost reductions and additional use of brake-related production capacity to support margins during fiscal 2027. Other initiatives include tariff mitigation, improved pricing for scrap sales, potential relocation of certain operations to lower-cost global facilities and additional strategic cost reductions. The company is nearing completion of the relocation of its heavy-duty rotating electrical operations to Mexico from Canada, a process that began in the latter part of fiscal 2026. Joffe said the move is intended to improve operating efficiency and margins. Motorcar Parts used $11.3 million in operating cash flow during the first quarter, primarily due to working-capital needs associated with inventory ramping for new business. The company repurchased $1.9 million of shares during the period. Revolver loan balance: $118.8 million as of June 30, 2026 Cash balance: $19.1 million Net bank debt: $99.7 million Total cash and availability: approximately $112.4 million Shares repurchased: 129,523 for $1.9 million, or an average of $14.98 per share Remaining authorization for share repurchases: $20.1 million Lee said EBITDA for the 12 months ended June 30 was $60 million, or $79.1 million before non-cash and one-time cash expenses. The company calculated its net bank debt-to-adjusted EBITDA ratio at 1.26. The company also recently extended the maturity of its revolver credit facility, led by PNC Bank, to August 2031. Guidance includes customer commitments expected to ramp during the second half of fiscal 2027. Lee said the timing has been somewhat affected by customers purchasing liquidated inventory from a prior supplier. Motorcar Parts expects to add more than $100 million in additional annualized net sales by the end of fiscal 2027, though those sales are not included in current guidance because of uncertainty surrounding timing. Management said annualized net sales are expected to exceed $900 million by the end of the fiscal year. The company is also continuing to evaluate strategic alternatives for its non-core electric-vehicle emulator business, which includes a next-generation emulator. Lee said the business continues to secure new original-equipment customer commitments while the review proceeds. In closing remarks, Joffe said management remains focused on expanding market share in non-discretionary aftermarket categories, improving efficiency across its global platform and supporting demand in passenger-vehicle, heavy-duty and diagnostic-testing markets. Motorcar Parts of America, Inc is a leading North American designer, manufacturer and distributor of aftermarket automotive replacement parts. The company's product portfolio spans collision and mechanical components, providing solutions for steering and suspension, brake systems, engine cooling, electrical and drivelines. Through a combination of proprietary brands and exclusive licensing agreements, Motorcar Parts of America offers an extensive selection of both new and remanufactured parts to meet the needs of automotive service professionals and retailers. In addition to its core collision and under-hood product lines, the company markets specialty items such as performance accessories, tools and equipment. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Motorcar Parts of America Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

LOS ANGELES, August 04, 2026--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today announced the company will issue its fiscal 2027 first quarter results on Monday, August 10, 2026. Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call the same day at 10:00 a.m. Pacific time to discuss the company’s financial results and operations. The call will be open to all interested investors either through a live Web broadcast via the company’s investor relations site at www.motorcarparts.com and the tab Events and Presentations or by calling (833) 461-5787 (domestic). Meeting ID 406 025 397. Participants are encouraged to pre-register for the conference call to receive call details and faster access to the event. A listing of dial-in numbers for international participants is available via: https://help.events.q4inc.com/eahc/international-dial-in-numbers. For those who are not available to listen to the live broadcast, a replay of the call will be archived on Motorcar Parts of America’s investor relations site www.motorcarparts.com for a seven-day period. About Motorcar Parts of America Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Canada, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804339346/en/ Contacts Gary S. MaierVice President, Corporate Communications & IR(310) 972-5124

– Solid Fourth Quarter, Favorable Outlook;Strong Brake-Related Product Sales Momentum within Changing Competitive Landscape – LOS ANGELES, June 08, 2026--(BUSINESS WIRE)--Motorcar Parts of America, Inc. (Nasdaq: MPAA) today reported financial results for its fiscal 2026 fourth quarter and year ended March 31 – reflecting solid sales, gross profit and net income for both periods. Fourth Quarter Highlights: Net sales increased 9.9 percent to $212.3 million. Gross profit increased 30.9 percent to $50.4 million. Gross margin increased to 23.7 percent from 19.9 percent. Operating income increased 29.4 percent to $21.1 million. Net income was $9.7 million compared with net loss of $722,000 in the prior year. Repurchased 286,136 shares for $3.0 million at an average share price of $10.48. Positive Future Drivers: Awarded significant new business commitments and opportunities within a changing competitive landscape. Increasing utilization of brake-related capacity is expected to continue to support its margin accretion. Overall operating efficiencies are expected to result in continuing operating income improvement. Three-Month Results Net sales for the fiscal 2026 fourth quarter increased $19.2 million, or 9.9 percent, to $212.3 million from $193.1 million in the prior year. Net sales for the quarter include $19.9 million of core revenue in connection with the realignment of inventory at certain customer distribution centers. Gross profit for the fiscal 2026 fourth quarter increased $11.9 million, or 30.9 percent, to $50.4 million from $38.5 million a year earlier. Gross margin for the same period was 23.7 percent compared with 19.9 percent a year earlier. Gross margin was impacted by non-cash expenses of 1.8 percent and one-time items of 0.3 percent as detailed in Exhibit 3. Excluding these non-cash and certain one-time cash items, gross margin increased to 25.8 percent. Operating income for the fiscal fourth quarter was $21.1 million compared with $16.3 million in the prior year. Operating income was impacted by non-cash expenses of $6.7 million, partially offset by one-time net benefits of $3.3 million as detailed in Exhibit 6. Interest expense for the fiscal 2026 fourth quarter decreased by $2.3 million to $10.3 million from $12.5 million a year ago, reflecting lower utilization of accounts receivable discount programs and lower interest rates. Net income for the fiscal 2026 fourth quarter was $9.7 million, or $0.42 per diluted share, compared with a net loss of $722,000, or $0.04 per share, for the prior year. Net income was impacted by non-cash expenses of $4.1 million, or $0.18 per diluted share, and benefited from one-time items of $2.5 million, or $0.11 per diluted share, as detailed in Exhibit 1. "Notwithstanding some head winds in fiscal 2026, including a large customer’s ordering activity, we ended the year with a strong quarter and with significant new business commitments and opportunities which will phase in throughout fiscal 2027," said Selwyn Joffe, chairman, president and chief executive officer. Joffe highlighted the company’s commitment to enhancing shareholder value. He reemphasized the company’s significant new business commitments and opportunities in North America, its focus on profitability and neutralizing working capital, and the benefits of a strong financial position. After share repurchases of $11.4 million for fiscal 2026, the company’s revolver loan of $94.7 million less cash of $14.7 million at March 31, 2026, resulted in net bank debt of $80.0 million. The company has $22.1 million remaining to repurchase shares under its current authorized share repurchase program. For the three years ended March 31, 2026, the company generated cash from operating activities of approximately $103.8 million. Twelve-Month Results Net sales for fiscal 2026 increased $32.5 million, or 4.3 percent, to $789.8 million from $757.4 million in the prior year. Net sales for fiscal 2026 reflect $35 million of core revenue in connection with the realignment of inventory at certain customer distribution centers, and an approximately $30 million sales decrease to one of the company’s large customers. Gross profit for fiscal 2026 was $159.9 million compared with $153.8 million a year earlier and gross margin for the twelve months was 20.2 percent compared with 20.3 percent a year earlier, impacted by items in Exhibit 4. Operating income for fiscal 2026 was $65.8 million compared with $39.9 million in the prior year, reflecting the favorable foreign exchange impact of lease liabilities and forward contracts. Operating income was impacted by non-cash expenses of $11.6 million and the benefit of one-time items of $791,000 as detailed in Exhibit 6. Excluding these non-cash and certain one-time cash items, operating income was $76.6 million. Interest expense decreased by $8.9 million for the twelve months to $46.7 million from $55.6 million a year ago, reflecting lower average outstanding balances under the company’s credit facility, lower utilization of accounts receivable discount programs and lower interest rates. Net income for fiscal 2026 was $12.4 million, or $0.62 per diluted share, compared with a net loss of $19.5 million, or $0.99 per share, a year ago. Net income was impacted by non-cash expenses of $7.8 million, or $0.39 per diluted share, and benefited from one-time cash items of $593,000, or $0.03 per diluted share, as detailed in Exhibit 2. Share Repurchase For fiscal 2026, the company repurchased 955,608 shares for $11.4 million at an average share price of $11.88. During the fiscal 2026 fourth quarter, the company repurchased 286,136 shares for $3.0 million at an average share price of $10.48 under its current authorization program. The company anticipates further opportunities to build shareholder value through enhanced profitability and strong cash generation. Fiscal 2027 Guidance Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2027 to increase between 7.5 percent to 10.2 percent year-over-year growth, reflecting the exclusion of certain non-recurring items including tariff pass-throughs due to the reduction of import tariffs, and non-recurring core revenue, representing net sales of between $780 million to $800 million. Current guidance includes new business commitments that are expected to ramp up in the second half of the fiscal year. The timing of the ramp-up is due to customers taking advantage of liquidated inventory purchased from a previous supplier. In addition, the company expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, which is not included in its guidance due to the uncertainty of the timing. In summary, the company expects annualized net sales to be more than $900 million by the end of fiscal 2027. Operating income is expected to be between $86 million and $91 million, representing between 12.3 percent and 18.8 percent year-over-year growth, and these estimates reflect the expected impact of tariffs enacted as of June 8, 2026, and do not include certain non-cash items and one-time expenses. The company estimates depreciation and amortization will be approximately $9 million. Based on the above, the company expects EBITDA to be between $95 million and $100 million. Use of Non-GAAP Measure This press release includes the following non-GAAP measure – EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, see the financial tables included in this press release. Also, refer to our Form 8-K to which this release is attached, and other filings we make with the SEC, for further information regarding this measure. Earnings Conference Call and Webcast Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific time to discuss the company’s financial results and operations. The call will be open to all interested investors either through a live audio webcast at www.motorcarparts.com or live by calling (888) 440-5584 (domestic) or (646) 960-0457 (international). For those who are not available to listen to the live broadcast, the call will be archived on Motorcar Parts of America’s website www.motorcarparts.com. A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific time on June 8, 2026 through 8:59 p.m. Pacific time on June 15, 2026 by calling (800) 770-2030 (domestic) or (609) 800-9909 (toll) and using access code: 1545314. About Motorcar Parts of America, Inc. Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts – including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2026 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. Additional Information and Non-GAAP Financial Measures To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company has included the following additional information and non-GAAP financial measures for the three and twelve months ended March 31, 2026 and 2025. Among other things, the company uses such additional information and non-GAAP adjusted financial measures in addition to and together with corresponding GAAP measures to help analyze the performance of its business. The company believes this information helps provide a more complete understanding of the company's results of operations and the factors and trends affecting the company's business. However, this information should be considered as a supplement to, and not as a substitute for, or superior to, information contained in the company’s financial statements prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. The company defines EBITDA as earnings before interest, taxes, depreciation, and amortization. A reconciliation of EBITDA to net income is provided below along with information regarding such items. View source version on businesswire.com: https://www.businesswire.com/news/home/20260608531553/en/ Contacts Gary S. MaierVice President, Corporate Communications & IR(310) 972-5124

Image source: The Motley Fool. Monday, June 8, 2026 at 1 p.m. ET Chairman, President, and Chief Executive Officer — Selwyn H. Joffe Chief Financial Officer — David Lee Selwyn H. Joffe, chairman, president, chief executive officer, and David Lee, our chief financial officer. I would like to remind everyone of the safe harbor statement. Included in today's press release. Private Securities Litigation Reform Act of 2 thousand provides a safe harbor for certain forward looking statements, including statements made during today's conference call. Such forward looking statements are based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There could be no assurance that future developments affecting the company will be those anticipated by Motorcar Parts of America. Actual results may differ from those projected in the forward looking statements. These forward looking statements involve significant risks and uncertainties, some of which are beyond the control of the company. And are subject to change based upon various factors. In particular, expectations about anticipated future growth and opportunities with customers may not be achieved, the company undertakes no obligation to publicly revise or update any forward looking statements whether as a result of new information, future events, otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the company's business, I refer you to the company's various filings with the Securities and Exchange Commission. With that, said, I would like to begin the call, turn it over to Selwyn H. Joffe. Selwyn H. Joffe H. Joffe: Thank you, Gary. I appreciate everyone joining us today. As stated in our earnings release issued this morning, we ended the year with a strong fourth quarter and numerous new business commitments. Phasing in throughout fiscal 27. As well as exciting new additional pending business opportunities. Let me start by highlighting our meaningful financial accomplishments for the fourth quarter and year. Net sales increased 9.9% for the quarter and 4.3% for the year. Gross profit increased 30.9% for the quarter and 3.9% for the year. Gross margin increased to 23.7% for the quarter, and was 20.2% for the year. Operating income increased 29.4% for the quarter and 64.9% for the year. Net income for the quarter was 9.7 million, compared with a net loss of 722 thousand a year ago. Our net income for the year was 12.4 million compared with a net loss of 19.5 million a year ago. We used cash from operating activities of 4.5 million in the quarter. This was primarily due to an increase in accounts receivable of 32.5 million reflecting strong sales towards the end of March. For the year, we generated cash from operating activities of 19.2 million We generated cash of 57 million before working capital use of 37.8 million. Working capital was impacted by an inventory ramp up for new business in the upcoming fiscal year. And a large increase in accounts receivable at fiscal year end because of significantly strong sales. Late in the fourth quarter. We reduced net bank debt to $80 million despite repurchasing shares of 11.4 million for the year. David will discuss these metrics in more detail shortly. In short, we are encouraged by our achievements particularly in the fourth quarter. Our strategy remains focused on increasing profitability growing share, and neutralizing working capital. We believe accelerating gains in our brake related business will continue to support our overall margin goals. Supported by further efficiencies and increased utilization of our facility. We have a number of initiatives that we are exploring. Including utilizing AI to help neutralize working capital. We expect to continue to generate positive cash flow on an annual basis. Over the last 3 years, we have generated more than 100 million of cash from operating activity. Which supports further debt reduction and share repurchases. While leveraging our strength to take advantage of additional opportunities in both the retail and traditional markets. We remain focused on gaining share across all product categories, by leveraging our leadership position. Our financial strength, and reputation. I might add that our Quality-Built brand products continue to gain name recognition and market share across the traditional distribution and repair market. Equally important, this growing brand name recognition within the professional aftermarket presents exciting opportunities for us to expand awareness and enhance loyalty. Among customers and consumers both near and long term. In short, we offer our retail and traditional customers great products, industry leading SKU coverage and order fill rates, supported by value added merchandising and marketing support. I should mention that we continue to seek opportunities to support our customers leveraging our low cost footprint. As I have highlighted before, the average age of US light vehicles continues to rise. Most recent industry data shows that the average age has risen 12.8 years from 12.5 years in 2024. In addition, the number of vehicles on the road climbed to 295.9 million. From 291.1 million a year ago. We expect increased replacement opportunities for the life of vehicles. Particularly with consumers holding on to their vehicle longer. In short, we are all committed and focused on our customers, offering quality products and services, with rational pricing. With regard to our heavy duty business, we continue to leverage our reputation and industry position in this market. Focused on opportunities to further enhance operating efficiencies and margin. Our vision is to leverage the reputation of our Quality-Built brand name. We anticipate this will build momentum and enhance our market position. Particularly with regard to supplying alternators and starters to our channel partners who are leaders in the heavy duty aftermarket segment and the overall heavy duty rotating electrical market. I should note that we commenced the relocation of our heavy duty operation. To Mexico from Canada in the latter part of fiscal 26. As part of our ongoing commitment to continuous improvement. And we look forward to further opportunities to enhance operating efficiencies as we complete the transition. In addition, we continue to experience increased demand for our aftermarket parts which complements our existing strategic operational and distribution footprint there. As our US based retailers and warehouse distributor customers, expand throughout Latin and South America, we are well positioned to benefit while supporting their growth. Regarding our diagnostic business, our JBT-1 Bench-Top Tester leads the industry. And the installed base is continuing to grow. We also expect more opportunities outside North America as the business evolves. Including potential new applications that complement and leverage our technology. We believe the outlook is bright for nondiscretionary aftermarket parts for the internal combustion engine market and we are focused on leveraging our capability and capacity to offer a broad range of SKUs for all markets, all makes, and models with a newer or older vehicle. As I have previously mentioned, deferment is not really a long term option for our nondiscretionary products. If your car does not start or stop, you are not driving. We believe we have meaningful opportunities for further growth and profitability as the competitive landscape continues to change. I would now like to turn the call over to David Lee. David Lee: Thank you, Selwyn, and good morning, everyone. Let me begin by outlining several topics I want to discuss. We will go over analytics for the fiscal fourth quarter, sales momentum and opportunities, gross margin and operating income, cash flow, balance sheet, liquidity and debt leverage, share repurchases, potential strategic alternatives for our EV-emulated business, and guidance for the new fiscal year ending March 31, 2027. Let's start with analytics for the fiscal fourth quarter. Fiscal fourth quarter ended March 31, 2026, net sales, gross profit, gross margin, and profitability increased compared with a year ago. As we start the new fiscal year, we believe this momentum will continue for fiscal 2027. From a sales perspective, as sales momentum increases, combined with new business commitments that Selwyn referenced earlier, as well as other meaningful opportunities we believe the company will benefit in several ways near term. Including favorable impact to gross margin, continued annual cash flow generation, net bank debt reduction and opportunities to increase shareholder value. In short, the fundamentals of our business are strong. Regarding gross margin, let me first discuss the fourth quarter in more detail. Gross margin was 23.7%, compared with 19.9% a year earlier, enhanced by an ongoing focus on cost reduction opportunities. Gross margin was impacted by noncash expenses of 1.8%, and onetime items of 0.3%, as detailed in exhibit 3 of this morning's earnings press release. Excluding these noncash and certain onetime cash items, gross margin increased to 25.8%. Fiscal 2027 gross margin is expected to continue to be favorably impacted by increased sales, over absorption, and overall cost reductions and efficiencies impacted by product mix. Overall, regarding gross margin, we remain focused on overall gross margin accretion supported by strong momentum and greater utilization of brake related capacity. We are also focused on positive impacts to overall margin, from further improvements in operating efficiency supported by benefiting from our tariff mitigation initiatives, better pricing for scrap sales as we gain more market share for our products additional opportunities to relocate certain operations to our low cost facilities globally, including Mexico. And further strategic cost reductions. These initiatives are expected to positively impact overall gross margin. Operating income for fiscal year 26 was 65.8 million Operating income was 76.6 million, before the impact of noncash expenses of 11.6 million and the benefit of onetime cash items of 791 thousand as detailed in exhibit 6 of this morning's earnings press release. Regarding our cash flow, balance sheet, and liquidity, The 12 month period, cash generated from operating activities was 19.2 million As Selwyn previously indicated, we generated cash of $57 million before working capital use of 37.8 million Working capital was impacted by an inventory ramp up for new business, in the current new fiscal year, and a large increase in accounts receivable of $32.5 million for the fourth quarter, because of significantly strong sales late in the fourth quarter. After share repurchases of 11.4 million for fiscal year 26, the company's revolver loan of 94.7 million, less cash of 14.7 million, at March 31, 2026 resulted in net bank debt of 80 million. The company has 22.1 million remaining to repurchase shares under its current authorized share repurchase program. For the 3 years ended March 31, 2026, the company generated cash from operating activities of approximately 103.8 million as Selwyn previously highlighted. Our liquidity remains strong with total cash and availability of approximately 133.7 million, as of 03/31/2026. We remain focused on increasing operating profit and gross margin and generating positive cash flow supported by growth and operating efficiencies from our global footprint. In addition to our goal of generating increased operating profits, including benefits from our gross margin expansion initiative, previously explained, we expect further opportunities to neutralize working capital. Supported by customer product demand planning, enhanced inventory management, and extending our vendor payment terms, including growing our supply chain finance program offered to our vendors. Regarding our debt leverage, based on information in our filing today, EBITDA for the 12 months ended March 31, 2026 was 76.4 million. EBITDA before the impact of noncash and onetime cash expenses was 86.1 million for the same period. To recap, our net bank debt was 80 million at March 31, 2026, compared with EBITDA before the impact of noncash and onetime cash expenses. Mentioned above of 86.1 million for the 12 months ended March 31, 2026 resulting in a net bank debt to EBITDA ratio of 0.93. We also committed to further opportunities to increase share repurchases. For the 12 month period, the company repurchased 956 thousand shares. For 11.4 million at an average share price of $11.88. With regard to our EV-emulated business, which is a noncore asset, we are continuing to explore strategic alternatives to capitalize on its proprietary industry leading technology including a state of the art next generation emulator. While we continue to explore strategic alternatives, we have secured prestigious new OE customer commitments for our emulated business. Regarding guidance, Motorcar Parts of America expects net sales for the fiscal year ending March 31, 2027 to increase between 7.5% to 10.2% year over year growth. Reflecting the exclusion of certain nonrecurring items, including tariff pass throughs due to the reduction of import tariffs. And nonrecurring core revenue, representing net sales of between 780 million to 800 million. Current guidance includes new business commitments that are expected to ramp up in the second half of the fiscal year. The timing of the ramp up is due to customers taking advantage of liquidated inventory, purchased from a previous supplier. In addition, the company expects to add more than 100 million of additional annualized net sales by the end of fiscal 2027 which is not included in the guidance due to the uncertainty of the timing. In summary, the company expects annualized net sales to be more than $900 million by the end of fiscal 2027. Operating income is expected to be between $86 million and 91 million representing between 12.3% to 18.8% year over year growth. And these estimates reflect the expected impact of tariffs enacted as of June 8, 2026 and do not include certain noncash items and onetime expenses. The company estimates depreciation and amortization will be approximately 9 million. Based on the above, the company expects EBITDA to be between 95 million and 100 million. For details on the results, refer to the earnings press release issued this morning I would now like to open the line for questions. Operator: Thank you. We will now begin the question and answer session. Your first question comes from the line of Brian Nagel from Oppenheimer. Your line is open. Andrew Chaz: Hi. This is Andrew Cha, on for Brian Nagel. Thanks for taking our question. Really nice quarter here. Thank you. So I guess just 2 questions. You know, you referenced the competitor bankruptcy at a key driver for new business. So I guess the question is around the, you know, 100 million incremental opportunity. How much of that is directly tied to this dislocation And how would you describe the stickiness of that longer term And then I got a follow-up. Selwyn H. Joffe H. Joffe: Yeah. I think a good proportion of that is, but we have also got some other good organic growth coming that is unrelated to that. So we are benefiting on both fronts. Andrew Chaz: that is helpful. And then just as my follow-up, You discussed the larger customer ordering disruption that weighed on Q3 that it clearly seems to have normalized. So the relationship now fully back to baseline? Selwyn H. Joffe H. Joffe: Or is there still some recovery volume that we should be thinking about Well, I think that again, you know, without getting into the specifics of the customer, I mean, that revenue came back. A customer did shut down about 15% of their stores. So our estimate is that a baseline is now 85% of previous revenues. Although the customers reported strong financial results in between our last calls. So we are optimistic, you know, overall for all of our customers. We think, I go back to the fundamentals and the statistics are that the car population continues to grow The average age of vehicles continues to grow, The car prices new car prices are up significantly. And as a result, used car sales are going up. Their price has also gone up. So we see the fundamentals of people maintaining their vehicles, keeping them on the road, and we focus on nondiscretionary items. So we are bullish organically from the business as well as that we believe that there is some there is some challenge in the supply chain with over leveraged companies. So we think there is opportunity. that is really helpful. Thank you. Operator: And, again, if you would like to ask a question, press Your next question comes from the line of Derek Soderberg from Cantor Fitzgerald. Your line is open. Derek Soderberg: Yes. Hey, guys. Thanks for taking the questions. Just a quick clarification on gross margin for the quarter. I am actually getting 23.3%. I was wondering if you can clarify that. Just looking at exhibit 3, it looks like the cash and noncash impact's largely cancel each other out. It looks like you have got an impact that is negative, but it shows positive on the like a 30-basis point improvement. Just wondering if you can clarify that quick. David Lee: Sure. So if you look at Exhibit 3 of this morning's earnings press release, our reported gross margin was 23.7% The noncash items had a 1.8% impact. So if you add that 1.8%, and also the cash items had a point 3%, So if you add the 1.8% and the point 3, to the 23.7, that gets you to 25.8%. Does that make sense? Derek Soderberg: Yeah. I am seeing the cash impact as a negative 4 million. Negative 3.976. David Lee: Right. So that is a good point. If you look at the letter a, the negative $6.5 million had a impact of negative 0.9%. We indicate that is the impact when you take into consideration both the sales and cost of goods sold impact. So the combined impact of sales and cost of goods sold on gross profit was a negative 0.9%. So the total impact was 0.3%. Unfavorable for the quarter that if you add to the noncash 1.8%, and add that to 23.7%, gets you to 25.8%. Derek Soderberg: Got it. Okay. Okay. And so I will just I just changed that quick in the model. And so it looks like for the change year on year, sort of flattish on adjusted gross margin. I was wondering if you could maybe briefly review kind of the puts and takes on that. I know you guys have the brake business that is becoming very accretive to gross margin. But I know there are some tariff impacts in the year. I was just wondering if you can briefly kind of summarize the puts and takes on adjusted margin this year and then what we should maybe expect looking into fiscal 27 for gross margin. David Lee: that is a good question. We continue to be focused on margin accretion. So this past quarter, we expand experienced not only cost reductions, efficiencies. We are very focused on efficiencies. So all the product lines, we are focused on becoming higher in gross margins. So we do expect in the new fiscal year, all those initiatives that we are undertaking, including continuing with cost reduction, becoming more efficient, all those will be positively contributing to gross margin. Selwyn H. Joffe H. Joffe: Yeah. And then on the revenue side, we have got significant new business commitments as well as significant amount pending that we are optimistic about. But the timing of all of that, Derek, with the change in the supply chain, is making it difficult for us to estimate. So we are trying to give a baseline guidance and then sort of look at the year end run rate as significantly up. Derek Soderberg: Got it. that is helpful. And then just 1 last quick 1. Is the inventory that some of your customers are working through that related to the First Brands? Yep. Issue. And so there was kind of a bankruptcy and there were maybe some cheap components out there that, you know, need to be worked through. Is that how we should think about it? Selwyn H. Joffe H. Joffe: Yeah. So if you think about it, the customers who are already getting product from First Brands, as soon as they heard a problem, started buying in more and more inventory so that the transition from the new supplier would give them more time as the transition for the new supplier. We are ready to go. But our customers are reducing that inventory. They are all firm commitments. That we have. And we are shipping all those customers, but smaller quantities today. And as we get through the year, you will see significant ramp up in those volumes. But that relates to that liquidation. Yes. Awesome. Well, really appreciate it, guys. Thank you very much, Derek. Appreciate you. David Lee: Thank you. Thank you. Operator: Your next question comes from the line of Brian Nagel from Oppenheimer. Your line is open. Andrew Chaz: Hey. I thought I would just squeeze 1 more quick follow-up if that is alright. Yeah. And I guess really just wanted to get your thoughts on, you know, bigger picture, the macro, and what is being contemplated within your guidance You know, on 1 hand, you have maybe a waning tax benefits from the end consumer. You have higher gas prices. and wanting you to maintain vehicles, potentially less miles driven on the road. How are you what macro factors are you considering as you are thinking about the next year ahead? Selwyn H. Joffe H. Joffe: Yeah. I think we-- yeah. I mean, I think we to the extent that we are capable I mean, the status quo is what we are incorporating. I mean, we, you know, we see higher fuel prices affecting miles driven But, again, the point I was trying to make is we are nondiscretionary. There is some deferral of nondiscretionary, but not nearly to the extent of discretionary items. We have seen some milder weather that affects sales. And, again, we have seen other public reports come out talking about milder weather and affecting sales. So we have taken all that into account. Again, the delay, I think, a macro perspective, I think the industry and is probably in agreement with what I am saying is that the fundamental tailwinds are strong. You know, I am not sure we do not refunds, we do not know what is gonna happen there. So we are not-- we are somewhat agnostic in our guidance to the refunds. The extent that we have went for refunds, you know, we will we will have to see how that, you know, affects us, hopefully, positively. But we are looking at a relatively modest outlook, you know, in light of all the situation, and you know but with some optimism because of the amount of momentum we have, in particular, in our brake lines. The brake opportunity for us we think, is unfolding in a bigger in a bigger way than even we anticipated. Coming into this year. I think, Derek, you have been a big-- Derek at Canter and particularly you guys as well, but have called out the brake pad opportunity and we certainly believe from the momentum we are seeing in our brake business that the brake pad which is a massive, massive market. Could be unfolding positively for us. Very helpful. Best of luck. Analyst: Thank you. David Lee: Thank you very much. Operator: Thank you. As there are no further questions, I will now turn the call back over to Selwyn H. Joffe for closing remarks. Selwyn H. Joffe H. Joffe: Great. In summary, again, we are bullish about our outlook. Notwithstanding the headwinds we experienced during fiscal 26. We remain laser focused on further efficiencies and fully benefiting from a not easily duplicated global platform to meet demand and grow market share for our nondiscretionary products, as well as for our diagnostic testing business. Our liquidity is strong, Our leverage is low. And we have the resources, capacity, and capability to further enhance shareholder value. In closing, we appreciate the contributions of all of our team members who are continuously focused on providing the highest level of service We are all committed to being the industry leader for parts and solutions that move our world today and tomorrow. We also appreciate the continued support of our shareholders and thank everyone again for joining us for the call. We look forward to speaking with you when we post our fiscal 2027 first quarter call in August, and at the various investor conferences and meetings in the interim. Thanks once again. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Motorcar Parts Of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Motorcar Parts Of America wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 8, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. MPAA Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a 9.9% increase in quarterly net sales and significant gross margin expansion to 23.7%, supported by cost reduction initiatives and increased utilization of brake-related capacity. Management attributes growth to the rising average age of U.S. light vehicles, now at 12.8 years, which increases demand for the company's nondiscretionary replacement parts. The company is leveraging a low-cost global footprint by relocating heavy-duty operations from Canada to Mexico to enhance operating efficiencies and margins. Strategic focus remains on neutralizing working capital through AI initiatives, enhanced inventory management, and the expansion of supply chain finance programs for vendors. The Quality-Built brand is gaining market share in traditional distribution channels, presenting long-term opportunities to enhance loyalty among professional aftermarket customers. Management highlighted a 'nondiscretionary' advantage, noting that while macro factors like fuel prices affect miles driven, essential parts for starting and stopping vehicles face less deferral than discretionary items. Fiscal 2027 net sales are projected between $780 million and $800 million, assuming a significant ramp-up in the second half as customers deplete liquidated inventory from a previous supplier. The company expects to add more than $100 million in additional annualized net sales by the end of fiscal 2027, though this is excluded from formal guidance due to timing uncertainty. Operating income guidance of $86 million to $91 million reflects expected impacts of tariffs enacted as of June 8, 2026, and assumes continued gains in brake-related business margins. Management is exploring strategic alternatives for its non-core EV-emulated business to capitalize on proprietary next-generation emulator technology. The company anticipates generating positive annual cash flow to support further debt reduction and its remaining $22.1 million share repurchase authorization. Working capital was impacted by a $32.5 million increase in accounts receivable due to exceptionally strong sales late in the fourth quarter. The relocation of heavy-duty operations to Mexico is currently underway, with completion expected to drive future margin accretion through lower labor costs. Inventory levels were intentionally increased to support a 'ramp up' for confirmed new business commitments scheduled for the upcoming fiscal year. Management noted that a major customer's closure of approximately 15% of its stores has reset the baseline revenue for that specific account to 85% of previous levels. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed a 'good proportion' of the $100 million opportunity stems from competitor dislocation, specifically referencing challenges faced by over-leveraged companies in the supply chain. The remaining growth is expected to come from organic gains unrelated to the competitor's bankruptcy. The second-half weighting of fiscal 2027 guidance is due to customers currently working through 'cheap components' liquidated by a previous supplier (First Brands). While customers have firm commitments with Motorcar Parts of America, they are currently ordering smaller quantities until existing excess inventory is exhausted. Guidance assumes a 'status quo' macro environment, acknowledging that higher fuel prices may affect miles driven but emphasizing the nondiscretionary nature of their products. Management is remaining 'agnostic' regarding the impact of consumer tax refunds, choosing not to bake potential windfalls into the modest outlook.

Interested in Motorcar Parts of America, Inc.? Here are five stocks we like better. Motorcar Parts of America posted a strong fiscal fourth quarter, with net sales up 9.9% and gross margin improving to 23.7%, helping swing quarterly net income to $9.7 million from a loss a year ago. Full-year net income also turned positive at $12.4 million versus a $19.5 million loss last year. Management issued upbeat fiscal 2027 guidance, forecasting net sales of $780 million to $800 million and operating income of $86 million to $91 million. The company also said it expects more than $100 million of additional annualized sales by the end of fiscal 2027, which would push annualized revenue above $900 million. The company ended the year with strong liquidity and lower leverage, reducing net bank debt to $80 million while maintaining about $133.7 million of cash and availability. It also repurchased 955,608 shares during the year and still has $22.1 million remaining under its buyback authorization. 2 Small-Caps With Large-Cap Potential Motorcar Parts of America (NASDAQ:MPAA) reported stronger fiscal fourth-quarter and full-year results, with management pointing to sales momentum, new business commitments and improving profitability as key drivers heading into fiscal 2027. Chairman, President and Chief Executive Officer Selwyn Joffe said the company ended the year with “a strong fourth quarter” and “numerous new business commitments” expected to phase in during fiscal 2027, along with additional pending opportunities. Management emphasized that the company remains focused on increasing profitability, gaining market share and managing working capital while continuing to generate positive annual cash flow. → Samsara Just Answered The AI Question—Is Wall Street Ready To Listen? Here’s What Happens When a Stock is Removed from an Index Joffe said net sales rose 9.9% in the fiscal fourth quarter and 4.3% for the full year. Gross profit increased 30.9% for the quarter and 3.9% for the year, while gross margin improved to 23.7% in the quarter and was 20.2% for the year. Operating income increased 29.4% in the fourth quarter and 64.9% for the full year. The company reported quarterly net income of $9.7 million, compared with a net loss of $722,000 in the prior-year period. For the full year, net income was $12.4 million, compared with a net loss of $19.5 million a year earlier. → IREN's 800MW Bet Flips the AI Power Switch Chief Financial Officer David Lee said fourth-quarter gross margin was 23.7%, up from 19.9% a year earlier, helped by cost reduction efforts. Excluding non-cash expenses and certain one-time cash items, Lee said gross margin was 25.8% for the quarter. For fiscal 2026, operating income was $65.8 million. Lee said operating income was $76.6 million before the impact of non-cash expenses and the benefit of one-time cash items detailed in the company’s earnings release. → Tesla’s EV Rebound Leaves Rivian and Lucid Facing a Tougher Investor Test Motorcar Parts of America used $4.5 million of cash from operating activities during the fourth quarter, which Joffe said was primarily due to a $32.5 million increase in accounts receivable tied to strong sales near the end of March. For the full year, the company generated $19.2 million of cash from operating activities. Management said the company generated $57 million of cash before using $37.8 million for working capital. Working capital was affected by inventory built for new business expected in the current fiscal year, as well as the increase in accounts receivable at year-end. The company reduced net bank debt to $80 million as of March 31, 2026, despite repurchasing $11.4 million of shares during the fiscal year. Lee said Motorcar Parts of America repurchased 955,608 shares at an average price of $11.88. The company has $22.1 million remaining under its current share repurchase authorization. Lee said liquidity remained strong, with total cash and availability of approximately $133.7 million at fiscal year-end. EBITDA for the 12 months ended March 31, 2026, was $76.4 million, or $86.1 million before non-cash and one-time cash expenses. Based on net bank debt of $80 million, Lee said the company’s net bank debt-to-EBITDA ratio was 0.93 on that adjusted basis. For fiscal 2027, Motorcar Parts of America expects net sales of $780 million to $800 million, representing year-over-year growth of 7.5% to 10.2%. Lee said the guidance excludes certain non-recurring items, including tariff passthroughs due to reduced import tariffs and non-recurring core revenue. The outlook includes new business commitments expected to ramp up in the second half of the fiscal year. Lee said the timing reflects customers working through liquidated inventory purchased from a previous supplier. In addition to the formal guidance, Lee said the company expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, though those sales are not included in guidance because of uncertainty around timing. Management expects annualized net sales to exceed $900 million by the end of fiscal 2027. Operating income is expected to range from $86 million to $91 million, representing growth of 12.3% to 18.8%. The company expects depreciation and amortization of approximately $9 million and EBITDA of $95 million to $100 million. Joffe said Motorcar Parts of America continues to see opportunity in non-discretionary aftermarket products, citing industry data showing the average age of U.S. light vehicles has increased to 12.8 years from 12.5 years in 2024. He also said the number of vehicles on the road rose to 295.9 million from 291.1 million a year earlier. Management highlighted momentum in brake-related products, with Joffe saying the company expects accelerating gains in that business to support margin goals. He also said the company’s Quality-Built brand continues to gain recognition and market share in traditional distribution and repair markets. In the heavy-duty business, Joffe said the company has begun relocating its heavy-duty operations from Canada to Mexico as part of its effort to improve efficiency. He also said Motorcar Parts of America is seeing increased demand for aftermarket parts in Mexico and is positioned to support U.S.-based retailers and warehouse distributors as they expand in Latin and South America. Joffe also pointed to the company’s diagnostic business, saying its JBT-1 benchtop tester “leads the industry” and that the installed base continues to grow. Lee added that the company continues to explore strategic alternatives for its EV emulator business, which he described as a non-core asset, while noting that the business has secured new original equipment customer commitments. During the question-and-answer session, Andrew Chasno, speaking on behalf of Brian Nagel of Oppenheimer, asked how much of the company’s incremental $100 million opportunity was tied to a competitor bankruptcy. Joffe said “a good portion” was related to that dislocation, while adding that the company also has organic growth opportunities unrelated to it. Derek Soderberg of Cantor Fitzgerald asked about customers working through inventory related to First Brands. Joffe said customers had built inventory after hearing of problems at that supplier and are now reducing those inventories. He said Motorcar Parts of America has firm commitments and is shipping smaller quantities currently, with volumes expected to ramp later in the year. Asked about macroeconomic assumptions, Joffe said the company’s guidance largely incorporates a status quo outlook. He acknowledged that higher fuel prices could affect miles driven and that milder weather can affect sales, but said the company’s focus on non-discretionary products limits the effect of deferrals compared with discretionary categories. Joffe closed the call by saying management remains “bullish” on the outlook despite fiscal 2026 headwinds, citing strong liquidity, low leverage and opportunities to gain share across product categories. Motorcar Parts of America, Inc is a leading North American designer, manufacturer and distributor of aftermarket automotive replacement parts. The company's product portfolio spans collision and mechanical components, providing solutions for steering and suspension, brake systems, engine cooling, electrical and drivelines. Through a combination of proprietary brands and exclusive licensing agreements, Motorcar Parts of America offers an extensive selection of both new and remanufactured parts to meet the needs of automotive service professionals and retailers. In addition to its core collision and under-hood product lines, the company markets specialty items such as performance accessories, tools and equipment. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Motorcar Parts of America Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.