Motorcar Parts of America reports $13.4 million Q1 loss

Motorcar Parts of America reported a $13.4 million net loss in its fiscal first quarter, swinging from a $3 million profit in the same period last year. The company, which makes alternators and starters for cars, said the loss came to 71 cents per share, versus a 15-cent profit per share a year ago. Net sales dropped to $168 million from $188.4 million in the prior-year period, as auto-parts demand softened.

The red ink was driven by $4.6 million in non-cash charges and $2.3 million in one-time costs. Even so, Motorcar Parts kept its long-term forecast intact. It still expects fiscal 2027 net sales of $780 million to $800 million and operating income of $86 million to $91 million, after excluding those unusual items. Analysts say the company is betting on steady replacement-parts business as older cars stay on the road longer.

Shares sank 21% in pre-market trading to $10.76, a sign investors are worried about the weak quarter. The stock had already fallen from around $14 at the start of the year, reflecting broader concerns about automotive supply chains and slowing car sales. Motorcar Parts has warned before that inflation and supply snags could crimp margins, and this report shows those pressures are still biting.

With the guidance unchanged, the company is betting that cost cuts and higher volumes will restore profitability by 2027. If demand stays soft or raw-material prices rise again, the plan could unravel. For now, investors are left watching whether Motorcar Parts can turn its first-quarter stumble into a steady recovery.