Motorcar Parts Of America earnings date
Motorcar Parts Of America (54M) Q2 2027 Earnings Report
DE:54M Q2 2027 EPS Results
- Actual EPS
- -EUR 0.06
- Consensus EPS
- EUR 0.35
- Beat/Miss
- Missed by -EUR 0.41
- One Year Ago EPS
- EUR 0.14
DE:54M Q2 2027 Revenue Results
- Actual Revenue
- EUR 151.51M
- Expected Revenue
- EUR 180.16M
- Beat/Miss
- Missed by -EUR 28.65M
- YoY Revenue Growth
- -23.59%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 11/09/2026
- Time
- Before Open
- Conference Call
- Monday, November 9, 2026
Motorcar Parts Of America's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call had a mixed but cautiously constructive tone. Near-term results were pressured by delayed customer orders, softer DIY demand, customer inventory realignment, foreign-exchange effects and a substantial reduction in fiscal 2027 sales guidance. However, management highlighted nearly $60 million of firm new annualized business awards, an additional $25 million opportunity, improving order trends, brake and Centric expansion, international growth opportunities, manufacturing relocation benefits and a focus on margin and cash-flow improvement. The number and significance of the growth initiatives and stated recovery expectations outweighed the disclosed challenges.
For the fiscal year ending March 31, 2027, the company now expects net sales of $715 million to $740 million, compared with previous guidance of $780 million to $800 million, and full year operating income of $37 million to $44 million, reflecting approximately $30 million in noncash expenses, approximately $5 million in expenses associated with relocating heavy-duty operations to Mexico, excluding approximately $11 million in IEEPA tariff refunds, with full year depreciation and amortization estimated at approximately $9 million; second half net sales are expected to be $378 million to $403 million, compared with $380 million in the prior year period, representing a decline of approximately 0.5% to growth of approximately 6.1%, or growth of approximately 5% to 11.9% excluding $19.9 million in prior-year core revenue, while second half operating income is expected to be $23 million to $30 million, reflecting approximately $14 million in noncash expenses, and second half depreciation and amortization is estimated at approximately $5 million. The company expects all awarded programs to launch during the second half of this fiscal 2027, with the majority launching towards fiscal year-end, anticipates approximately $25 million in incremental annualized sales by the end of March, and has nearly $60 million in incremental annualized new business awards; additional contributions are expected as these programs ramp during fiscal 2028, and gross margin for the additional business should be comparable to what has been reported, with the company averaging about 22-plus percent on gross margin excluding noncash items.
- Nearly $60 Million of Firm New Business AwardsThe company secured nearly $60 million in incremental annualized new business awards from existing and new customers. Small initial shipments have commenced, all programs are expected to launch during the second half of fiscal 2027, and approximately $25 million in incremental annualized sales is anticipated by the end of March, with additional contributions expected as the programs ramp during fiscal 2028.
- Additional $25 Million Opportunity Under Advanced DiscussionsThe company identified an additional $25 million of incremental annualized sales opportunity, separate from the $60 million of firm commitments. Management described these opportunities as being in very advanced discussions and said it hopes to achieve all or most of the amount by year-end, although some may move into the following fiscal year.
- Brake Business Expansion and Centric RelaunchBrakes have become the company's second major product category, with offerings including calipers, pads, rotors, master cylinders, power boosters, wheel hubs and brake shoes. The relaunch of the Centric Parts brand is expected to strengthen the company's position in the professional brake aftermarket, and potential Centric sales are not included in current incremental growth estimates.
- Improved Brake Capacity Utilization and Margin PotentialManagement expects increased utilization of existing brake manufacturing capacity to contribute to improved operating leverage and profitability as volumes grow. The new business is expected to have gross margins comparable to the company's recent history, averaging more than 22% excluding specified noncash and one-time items, with additional margin accretion expected from higher volume, favorable overhead absorption and cost reductions.
- Mexico and Canada Geographic ExpansionMexico is becoming an increasingly important growth market as major customers expand their operations there, creating additional supply opportunities through the company's established relationships and capabilities. The company also sees opportunities as major aftermarket customers expand into Canada.
- Heavy-Duty Operations Relocated to MexicoThe company completed the relocation of its heavy-duty rotating electric operation from Canada to its existing manufacturing facility in Mexico, where production has commenced. Management expects the move to reduce costs, improve production efficiencies and provide operating synergies.
- Diagnostic Testing Equipment MomentumThe JBT-1 rotating electric diagnostic testing equipment has an established presence with major aftermarket customers across the United States, Mexico and Canada. The company continues to expand installations within existing customer networks and pursue additional international opportunities.
- Positive Long-Term Automotive Aftermarket FundamentalsManagement said the average age of vehicles on the road continues to increase, consumers are keeping vehicles longer, and higher new-vehicle prices reinforce the incentive to maintain and repair existing vehicles. The company supplies essential components required for vehicles to start, stop and operate safely.
- Second-Quarter Gross Margin ImprovementSecond-quarter gross margin was 24.2%, compared with 19.3% a year earlier. Excluding noncash expenses, one-time items and foreign-exchange impact, gross margin was approximately 22.7% for the quarter.
- Tariff Refund Benefit and Margin InitiativesSecond-quarter gross margin benefited from one-time items totaling 5.7 percentage points, including approximately $11.1 million of IEEPA tariff refunds. Management also cited tariff mitigation initiatives, better scrap pricing, potential relocation of additional operations to low-cost facilities including Mexico, and further strategic cost reductions as initiatives expected to positively impact gross margin.
- Balance Sheet and Liquidity PositionAt September 30, 2026, net bank debt was $105.8 million, consisting of $126.6 million of revolver borrowings less $20.8 million of cash. Liquidity, including total cash plus revolver availability, was approximately $104.8 million.
- Net Debt-to-EBITDA Ratio of 1.5EBITDA for the 12 months ended September 30, 2026 was $58.9 million, or approximately $70 million before noncash and one-time cash items. Net bank debt of $105.8 million resulted in a net bank debt-to-EBITDA ratio of 1.5.
- Supply Chain Finance Recognition and Cash Flow FocusThe company received a highly commended award for best use of supply chain finance from a leading provider of supply chain programs. Management remains focused on neutralizing working capital through customer demand planning, enhanced inventory management, extended vendor payment terms and growth of its supply chain finance program.
- Share Repurchase Authorization Remains AvailableApproximately $20.1 million remained available under the authorized share repurchase program at September 30, 2026. Management said the company had repurchased a little over $11 million over the trailing 12 months as of June 30 and continues to view buybacks as a potential capital allocation option.
- South America Identified as a Major Future OpportunityManagement identified South America as potentially the company's biggest new-continent opportunity, supported by Mexico's growth, trade relationships and customer expansion such as AutoZone's entry into Brazil. The company also highlighted the potential to expand its rotating electrical and brake product lines and add Portuguese capability to its diagnostic equipment.
- Potential Benefit if Tariffs DeclineManagement said lower tariffs could reduce consumer repair costs while allowing the company to maintain margins through lower prices, potentially accelerating consumer demand. It also said tariff removal would be advantageous to pricing and margins for new brake calipers and rotating electrical products made in Malaysia.
DE:54M Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2027 (Q3) | 0.37- | 0.12 | ― | ― |
| Nov 09, 2026 | 2027 (Q2) | 0.35-0.06 | 0.14 | -143.75% (-0.21) | |
| Aug 10, 2026 | 2027 (Q1) | 0.18-0.30 | 0.12 | -361.54% (-0.42) | |
| Jun 08, 2026 | 2026 (Q4) | 0.300.44 | 0.25 | 75.00% (+0.19) | |
| Feb 09, 2026 | 2026 (Q3) | 0.210.12 | 0.32 | -63.89% (-0.21) | |
| Nov 10, 2025 | 2026 (Q2) | 0.340.14 | 0.28 | -48.39% (-0.13) | |
| Aug 11, 2025 | 2026 (Q1) | 0.160.12 | -0.3 | 139.39% (+0.41) | |
| Jun 09, 2025 | 2025 (Q4) | 0.180.25 | 0.05 | 366.67% (+0.20) | |
| Feb 10, 2025 | 2025 (Q3) | 0.390.32 | -0.24 | 233.33% (+0.56) | |
| Nov 12, 2024 | 2025 (Q2) | ―0.28 | 0.42 | -34.04% (-0.14) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
