Motorcar Parts of America (MPAA) Q4 2026 earnings summary

Executive summary

• Achieved strong Q4 and full-year results with net sales up 9.9% for the quarter to $212.3M and 4.3% for the year to $789.8M, driven by brake-related product momentum, new business commitments, and market share gains.

• Net income turned positive: $9.7M in Q4 (vs. $0.7M loss prior year) and $12.4M for the year (vs. $19.5M loss prior year).

• Focused on profitability, working capital neutralization, and leveraging AI tools for efficiency.

• Continued expansion in both retail and traditional markets, with growing brand recognition and new business opportunities.

• Share repurchases totaled $11.4M for the year, with $22.1M remaining under the current program.

Financial highlights

• Gross profit increased 30.9% in Q4 to $50.4M and 3.9% for the year; gross margin rose to 23.7% in Q4 and 20.2% for the year.

• Operating income up 29.4% in Q4 to $21.1M and 64.9% for the year to $65.8M.

• EBITDA for FY26 was $76.4M, up from $50.3M in the prior year; adjusted EBITDA (excl. non-cash/one-time) was $86.1M.

• Net bank debt reduced to $80M, with $11.4M in share repurchases.

• Q4 diluted EPS was $0.42, up from a loss of $0.04; full-year diluted EPS was $0.62, up from a loss of $0.99.

Outlook and guidance

• FY27 net sales expected to grow 7.5%-10.2% YoY, reaching $780M-$800M, excluding certain non-recurring items.

• Annualized net sales projected to exceed $900M by end of FY27, with $100M+ additional annualized sales not yet included in guidance.

• Operating income guidance: $86M-$91M (12.3%-18.8% YoY growth); EBITDA expected between $95M-$100M.

• Gross margin expected to benefit from cost reductions, product mix, and operational efficiencies.

• New business commitments expected to ramp up in the second half of fiscal 2027.