Motorcar Parts Of America ( (MPAA) ) has released its Q2 earnings. Here is a breakdown of the information Motorcar Parts Of America presented to its investors.
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Motorcar Parts of America, Inc. is a leading remanufacturer, manufacturer, and distributor of automotive aftermarket parts, serving the United States, Canada, and Mexico with a broad range of products including alternators, starters, and brake components. The company also has a subsidiary focused on electric vehicle testing solutions.
In its latest earnings report, Motorcar Parts of America announced a strong fiscal second quarter for 2026, achieving record sales and gross profit. The company reported net sales of $221.5 million, reflecting a 6.4% increase from the previous year, and a gross profit of $42.7 million, marking a record for the second quarter.
Key financial highlights include a significant reduction in net bank debt by $17.7 million, bringing it down to $56.7 million, and robust cash flow generation with $21.9 million from operating activities. Despite a net loss of $2.1 million for the quarter, this was an improvement from the $3.0 million loss in the prior year. The company also repurchased 90,114 shares, demonstrating confidence in its financial position.
Looking ahead, the management of Motorcar Parts of America remains optimistic about leveraging its strong market position and financial health to capitalize on growth opportunities in the automotive aftermarket sector. The company is poised to enhance its competitive edge amid favorable industry dynamics, such as the aging vehicle population in the U.S.