Motorcar Parts Reaffirms Fiscal 2027 Sales Guidance

The Tip Desk · August 10, 2026 · 3 min read

Net sales were $168.0 million in the fiscal 2027 first quarter as the aftermarket parts maker kept its $780 million to $800 million full-year outlook.

Motorcar Parts of America (MPAA) reported net sales of $168.0 million for the fiscal 2027 first quarter ended June 30, down from $188.4 million a year earlier, and said the shortfall was consistent with its expectations and tied to the timing of customer orders.

The automotive aftermarket remanufacturer, manufacturer and distributor of alternators, starters, wheel bearings, brake components and diagnostic equipment attributed the year-over-year decline primarily to that order timing, certain new business opportunities that were temporarily affected as customers took advantage of inventory liquidations linked to a competitor’s bankruptcy, and the planned relocation of its Canadian heavy-duty operations to manufacturing facilities in Mexico. The company said it believes the bankruptcy-related dynamic has begun to reverse.

Sequential sales also reversed the prior quarter’s trajectory. Net sales in the fiscal 2026 fourth quarter had been $212.3 million, up 9.9% from a year earlier.

Gross profit was $27.2 million. GAAP gross margin was 16.2%, compared with 18.0% a year earlier. Excluding non-cash expenses of 2.4% and one-time items of 1.6%, gross margin was 20.2%. The company said foreign currency reduced gross margin by about 2%, or $3.5 million.

Operating income was $3.5 million. Excluding non-cash expenses of $4.7 million and one-time items of $3.0 million, operating income was $11.2 million, which still included the $3.5 million foreign currency drag.

The company swung to a net loss of $13.4 million, or $0.71 a share, from net income of $3.0 million, or $0.15 a diluted share, a year earlier. The loss included non-cash expenses of $4.6 million, or $0.25 a share, and one-time items of $2.3 million, or $0.12 a share. Cash items included $3.0 million of transition expenses and severance, of which $2.8 million hit gross profit. Interest expense was $12.0 million, down $768,000 from $12.8 million a year ago, reflecting lower sales and lower utilization of accounts receivable discount programs.

Chairman, president and chief executive officer Selwyn Joffe said the company remains confident it can achieve annual guidance despite the first-quarter sales headwinds. He pointed to new business commitments in North America across product lines, including the additive Centric Parts brake business, which the company described as having estimated historical gross sales as high as $400 million at the supplier level. Joffe said the company has received considerable customer interest in Centric Parts since its recent announcement.

Motorcar Parts reaffirmed fiscal 2027 net sales guidance of $780 million to $800 million and operating income of $86 million to $91 million, excluding certain non-cash and one-time expenses. It expects to add more than $100 million of additional annualized net sales by the end of fiscal 2027, taking annualized net sales above $900 million, as referenced in the fiscal year-end release. The company also listed additional opportunities from the Centric Parts brand relaunch and increasing utilization of brake-related capacity to support margin accretion.

Joffe highlighted the renewal of the company’s loan agreement and extension of the revolver credit facility maturity to August 2031, led by PNC Bank, N.A. After share repurchases of $1.9 million and the recent purchase of Centric Parts brake brands, net bank debt was $99.7 million at June 30, 2026, reflecting a revolver loan of $118.8 million less cash of $19.1 million.

The company repurchased 129,523 shares for $1.9 million at an average price of $14.98, leaving $20.1 million remaining under its current authorization.