Motorcar Parts of America Inc., a prominent remanufacturer and distributor of automotive aftermarket parts, reported significant growth in fiscal 2025, posting record annual sales and a smaller net loss compared to the previous year.
Despite challenges posed by tariffs and the broader economic environment, the company showed resilience, driven by its diversified product portfolio and strategic initiatives, according to CEO Selwyn Joffe.
For the fiscal year ending March 31, Motorcar Parts of America achieved net sales of $757.4 million, a 5.5% increase from $717.7 million in fiscal 2024. The company’s net loss for the year narrowed to $19.5 million, a marked improvement from the $49.2 million loss reported in the previous fiscal year.
The company also reported solid performance for the fourth quarter, with net sales growing 1.9% to $193.1 million, up from $189.5 million in the same quarter of fiscal 2024. The Q4 net loss was $722,000 compared with $1.4 million in Q4 in the previous year.
This steady growth highlights the company’s ability to adapt to market conditions, even as inflationary pressures and tariff-related challenges linger, Joffe said.
“We expect sales to grow between 3% and 5.6% in fiscal 2026, reaching between $780 million and $800 million,” Joffe said during the earnings call, based on a transcript from SeekingAlpha. “Operating income is projected to rise to between $86 million and $91 million, which reflects our focus on cost efficiencies and strong demand for our core products.”
Tariffs continue to weigh on the company, but Joffe said Motorcar Parts of America has taken steps to address the issue. “We have substantially mitigated the impact of tariffs through customer price increases and supply chain initiatives,” Joffe stated. “We are confident that all the current tariffs imposed as of today will be fully offset, notwithstanding some short-term timing differences. We believe these tariffs will provide us with strategic competitive advantages going forward with strong market share growth opportunities.”
The company has also been reducing its reliance on Chinese suppliers, which now provide less than 25% of its products and components. “We’ve been focused on executing strategies designed to enhance our competitive edge long before the current events, including a focus on being less dependent on Chinese supply chains,” Joffe said. “Our Mexican and Canadian products are USMCA compliant and currently free from tariffs, which provides us with some relief.” USMCA is The United States-Mexico-Canada Agreement, a trade pact between the three nations.
The company’s flagship rotating electrical category, which includes alternators and starters, continues to generate solid performance, driven by the nondiscretionary nature of these parts. “If nondiscretionary products are broken, your car cannot be driven, which is particularly relevant in the current environment,” Joffe said, referencing the increasing vehicle age in the U.S., which now stands at an average of 12.8 years. Owners of older cars are more likely to buy replacement parts, the company notes.
In addition, the company’s brake-related products category, including calipers, pads, and rotors, is gaining market share. “We are encouraged by the continued success of our second-largest product category, brake-related applications,” said Joffe. “Our team is doing an exceptional job to further enhance market share, and we look forward to continued sales growth in this important nondiscretionary category.”
The company also expressed confidence in its growth prospects in Mexico. “Our hard part sales in Mexico continue to gain momentum as we experience increased demand for our aftermarket parts,” Joffe said. “We are well-positioned to utilize our footprint to meet the growing demand, and we expect our sales in this market to continue to expand.”
Despite the ongoing challenge of tariffs, Motorcar Parts of America is bullish on its long-term prospects. “We expect continued organic growth for our business, supported by favorable industry dynamics,” Joffe concluded. “Our commercial heavy-duty market continues to grow. Our brake-related business is gaining further traction, particularly brake calipers. In addition, our sales in the Mexican market are growing nicely, and we expect this momentum to continue throughout the region.”
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