Motorcar Parts (MPAA) Reports Q2 2027 Results Amidst Sales Decline and Revised Guidance

Motorcar Parts (MPAA) reported second-quarter fiscal 2027 net sales of $169.2 million, a significant decrease from the $221.5 million recorded in the prior-year quarter. The decline was attributed to delayed customer orders and an inventory realignment at distribution centers that did not repeat year-over-year. Consequently, the company lowered its full-year net sales guidance to a range of $715 million to $740 million, down from the previous estimate of $780 million to $800 million. Despite these headwinds, the company secured $60 million in incremental annualized new business awards expected to launch in the second half of fiscal 2027. Management is also managing a transition of heavy-duty manufacturing operations from Canada to Mexico, which will incur approximately $5 million in relocation costs. While net income was impacted by noncash expenses and foreign exchange fluctuations, the company maintains a net bank debt-to-EBITDA ratio of 1.5.

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