Motorcar Parts of America Inc
NASDAQ:MPAA
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Motorcar Parts of America Inc
NASDAQ:MPAA
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US |
Motorcar Parts of America Inc
Motorcar Parts of America, Inc. engages in manufacturing, remanufacturing, and distribution of automotive parts. The company is headquartered in Torrance, California and currently employs 5,700 full-time employees. The replacement parts are sold to automotive retail chain stores and warehouse distributors throughout North America and to automobile manufacturers for both their aftermarket programs and warranty replacement programs, including Original Equipment Supplier (OES). The firm's products include rotating electrical products such as alternators and starters; wheel hub assemblies and bearings; brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and other products, which include turbochargers and test solutions and diagnostic equipment used for electric vehicle powertrain development. Its test solutions and diagnostic equipment serves automotive component and powertrain testing market.
Motorcar Parts of America, Inc. engages in manufacturing, remanufacturing, and distribution of automotive parts. The company is headquartered in Torrance, California and currently employs 5,700 full-time employees. The replacement parts are sold to automotive retail chain stores and warehouse distributors throughout North America and to automobile manufacturers for both their aftermarket programs and warranty replacement programs, including Original Equipment Supplier (OES). The firm's products include rotating electrical products such as alternators and starters; wheel hub assemblies and bearings; brake-related products, which include brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders, and other products, which include turbochargers and test solutions and diagnostic equipment used for electric vehicle powertrain development. Its test solutions and diagnostic equipment serves automotive component and powertrain testing market.
Sales Miss: Quarterly results were below expectations due to a large customer reducing purchases and closing stores, leading to a downward revision of annual sales guidance.
Guidance Lowered: Fiscal 2026 sales guidance was cut to $750–760 million, and operating income guidance was set at $72–79 million.
Gross Margin Pressure: Gross margin fell to 19.6% from 24.1% a year ago, but is expected to improve in the next quarter as customer orders recover.
Strong Cash Flow: The company generated $23.7 million in cash over nine months, reduced net bank debt, and maintains strong liquidity of $146 million.
Strategic Review: Management is exploring strategic alternatives for its EV emulator business, considering it noncore to its aftermarket focus.
Market Position: Despite setbacks, management remains optimistic thanks to industry tailwinds, a growing car population, and new business wins.
