Earnings Releases·Nov 9, 2026, 7:58 AM ET

Motorcar Parts of America — Fiscal 2027 Second Quarter Earnings Summary

Q2 2027 net sales declined to $169.2 million from $221.5 million in the prior year (excluding $14.8 million of prior-year inventory realignment revenue), while Q2 gross margin expanded to 24.2% from 19.3% despite $11.1 million in IEEPA tariff refunds; net income turned positive at $1.4 million ($0.07 EPS) versus a $2.1 million loss in the prior year.
Fiscal 2027 net sales guidance was revised downward to $715 million–$740 million from $780 million–$800 million, with operating income guidance set at $37 million–$44 million, reflecting $30 million in estimated non-cash expenses and $5 million in heavy-duty relocation transition costs.
The company secured approximately $60 million in new annualized business awards expected to ship by fiscal year-end, with an additional $25 million targeted, alongside the completed relocation of heavy-duty operations to Mexico to reduce manufacturing costs.
Management highlighted significant growth opportunities from the relaunch of the Centric Parts brand (excluded from current estimates), expansion in Mexico and Canada, and increased utilization of brake manufacturing capacity, though results were impacted by delayed customer orders and lower tariff pass-throughs.
As of September 30, 2026, the company held $20.8 million in cash, $126.6 million in revolver borrowings, and $20.1 million remaining under its share repurchase program.