Motorcar Parts 2026 Q2 Earnings Narrows Net Loss by 27.3% Despite Revenue Growth

Motorcar Parts of America (MPAA) reported mixed results for fiscal Q2 2026, with revenue exceeding expectations but EPS falling short. The company confirmed its 2026 guidance despite challenges, including a temporary customer deferral and margin pressures.

Revenue

Total revenue rose 6.4% to $221.47 million, driven by robust demand for non-discretionary automotive parts. Rotating electrical products led the charge with $152.81 million, while brake-related offerings added $46.51 million. Wheel hub products contributed $13.29 million, and other segments rounded out the total. The performance underscores the company’s strong position in the aging vehicle market.

Earnings/Net Income

The company narrowed its net loss to $2.15 million ($0.11 per share) in Q2 2026, a 27.3% improvement from the $2.95 million ($0.15 per share) loss in Q2 2025. The improvement reflects cost management and operational efficiencies, though margin contraction and non-cash expenses weighed on profitability.

Post-Earnings Price Action Review

The stock price of Motorcar Parts has plummeted 23.43% during the latest trading day, has plummeted 25.58% during the most recent full trading week, and has plummeted 15.67% month-to-date.

CEO Commentary

CEO Selwyn Joffe highlighted a 8.4% sales increase in the first half of 2026, driven by $31.8 million in growth and $6.2 million in gross profit improvements. He emphasized strategic priorities like supply chain efficiencies, margin expansion, and leveraging North American operations. Joffe also noted the rising U.S. vehicle age (12.8 years) as a tailwind for replacement parts.

Additional News

Motorcar Parts of America announced a $3.4 million share repurchase program in Q2 2026, buying back 287,910 shares at an average price of $11.65. The company also accelerated its net bank debt reduction by $24.6 million over six months, signaling strong liquidity. Expansion in Mexico and Latin America remains a strategic focus, with increased demand for brake calipers and heavy-duty rotating electric products.