Motorcar Parts repurchased 129,523 shares for $1.9M in Q1

Company executed buybacks at $14.98 average price with $20.1M remaining under authorization.

What the filing says

Motorcar Parts of America, Inc. (Nasdaq: MPAA) repurchased 129,523 shares for $1.9 million during its fiscal 2027 first quarter ended June 30, 2026, at an average share price of $14.98 per share. The repurchases were executed under the company's current authorized share repurchase program.

The company disclosed in its earnings release that $20.1 million remains available under its current authorized share repurchase program. The execution mechanism was not specifically disclosed in the filing, though the company characterizes the buyback as conducted under its existing authorization.

This repurchase activity was noted in the context of the company's broader capital management strategy. Following the share repurchases and the recent purchase of Centric Parts brake brands, net bank debt stood at $99.7 million as of June 30, 2026, comprised of a revolver loan of $118.8 million less cash of $19.1 million.

During the fiscal 2027 first quarter, the company repurchased 129,523 shares for $1.9 million at an average share price of $14.98 under its current authorization program. The company has $20.1 million remaining to repurchase shares under its current authorized share repurchase program. — MOTORCAR PARTS OF AMERICA INC 8-K filing  ·  View on SEC EDGAR →

What this means

Motorcar Parts executed modest buyback activity during its fiscal first quarter, repurchasing shares at $14.98—near a depressed valuation context given the company reported a net loss of $13.4 million for the quarter. The $1.9 million spent represents a small capital deployment relative to the $20.1 million remaining authorization, suggesting the company is taking a measured approach to share reduction while managing debt ($118.8 million in revolver debt) and integrating recent acquisitions like Centric Parts. The buyback reduced outstanding shares by less than 0.7%, a negligible impact on weighted average shares outstanding.

Frequently asked questions

How many shares did Motorcar Parts repurchase in Q1 fiscal 2027?

The company repurchased 129,523 shares for $1.9 million at an average price of $14.98 per share during the fiscal 2027 first quarter ended June 30, 2026. This represented a modest capital deployment under the company's existing authorization program.

How much authorization remains for future repurchases?

Motorcar Parts has $20.1 million remaining under its current authorized share repurchase program as of the end of Q1 fiscal 2027. The company has not disclosed the total authorization amount or when the program was originally approved.

Why did the company conduct buybacks while reporting a quarterly loss?

The company characterized its Q1 loss ($13.4 million GAAP net loss) as primarily driven by timing of customer orders, competitor bankruptcy impacts, and one-time/non-cash charges. Despite the quarterly loss, management stated it remains confident in achieving full-year guidance and sees opportunities to build shareholder value through sales gains and cash generation.

What is the company's stated rationale for share repurchases?

Motorcar Parts stated it 'anticipates opportunities to build shareholder value through sales gains, enhanced profitability and strong cash generation.' The repurchase program operates alongside the company's strategic initiatives, including the Centric Parts brake brands acquisition and capacity expansion.

How does the buyback fit into the company's capital allocation strategy?

Share repurchases are one part of the company's capital management approach alongside debt management. As of June 30, 2026, net bank debt was $99.7 million after the buyback and Centric Parts acquisition, reflecting a $118.8 million revolver and $19.1 million in cash. The company is balancing buybacks with strategic acquisitions and debt service.