June 9, 2026

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Motorcar Parts of America, Inc. (NASDAQ: MPAA) reported fiscal fourth-quarter 2026 results above expectations, supported by higher sales, margin expansion, improved operating income, and a swing back to profitability.
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Motorcar Parts of America supplies automotive aftermarket parts, including rotating electrical products, brake-related products, wheel hub assemblies, turbochargers, and diagnostic equipment.
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The company reported EPS of $0.42, above estimates of $0.11, representing a 281.8% earnings surprise. Revenue came in at $212.28 million, above estimates of $175.88 million.

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Results Showed Strong Profit Recovery

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Net sales increased 9.9% to $212.3 million from $193.1 million in the prior-year quarter. The quarter included $19.9 million of core revenue tied to inventory realignment at certain customer distribution centers.
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Gross profit increased 30.9% to $50.4 million, while gross margin improved to 23.7% from 19.9%. Excluding non-cash and certain one-time items, gross margin increased to 25.8%.
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Operating income rose to $21.1 million from $16.3 million a year earlier. Net income improved to $9.7 million, or $0.42 per diluted share, compared with a net loss of $722,000, or $0.04 per share, in the prior-year quarter.
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The company also repurchased 286,136 shares for $3.0 million during the quarter and bought back $11.4 million of stock for the full fiscal year.

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Guidance

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For fiscal 2027, Motorcar Parts expects net sales of $780 million to $800 million, reflecting 7.5% to 10.2% year-over-year growth after excluding certain non-recurring items.
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Management also expects operating income of $86 million to $91 million and EBITDA of $95 million to $100 million. The company said new business commitments are expected to ramp in the second half of fiscal 2027, with annualized net sales expected to exceed $900 million by the end of the year.

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The Bigger Picture

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Motorcar Parts delivered a strong quarter after a difficult prior-year comparison.
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Revenue grew, gross margin expanded, interest expense declined, and the company swung to a profit. The market likely focused on the earnings beat, improved profitability, buybacks, and management’s outlook for additional sales growth from new business wins.
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