A strong performance in its fiscal third quarter financials for Motorcar Parts of America Inc. translated to a higher stock price.
The Torrance manufacturer and distributor of car parts, such as alternators and brake rotors and pads, saw its share price go up by 10% from the close on Feb. 7 of $5.75 to a close on the next trading day on Feb. 10 of $6.36. It reported its financials before the market opened on Feb. 10.

The closing price of $11.36 on Feb. 26 represented a 52-week high. It also represents a nearly 51% increase since the beginning of the year when the stock closed at $7.54 on Jan. 2.

And the 557,800 shares traded on Feb. 10 marked the highest trading volume for the company in the past 52-week period.

Shares closed at $10.82 on Feb. 27.

Reporting strong net income

Motorcar reported on Feb. 10 net income of $2.3 million (11 cents a share) for the quarter ending Dec. 31, compared with a net loss of $47.2 million ($2.40 a share) in the same period of the previous year. Revenue increased by 8% from the third quarter of the prior year to $186 million.

Selwyn Joffe, chief executive of the company, also known as MPA, said that the underlying fundamentals of the business continue to be strong, and he remains focused on enhancing shareholder value.

“We achieved solid results for the quarter and continue to benefit from strategic initiatives designed to enhance our performance,” Joffe said in a statement. “While customer specific internal dynamics can have a short-term impact on suppliers, we are optimistic about our ability to further leverage our leadership position within the non-discretionary aftermarket parts market – supported by quality products, customer-centric service and an industry recognized commitment to excellence.”

Joffe also noted that the company generated approximately $34.4 million of cash from operating activities during fiscal 2025 third quarter and reduced net bank debt by $30 million to $84 million from $114 million.

During a conference call with analysts to discuss the third quarter financials, Joffe summed up the quarter by saying the company was bullish about its outlook.

“We remain laser-focused on further efficiencies and fully benefiting from a not easily duplicated global platform to meet demand for nondiscretionary products as well as from our diagnostic testing capabilities,” Joffe said during the call.

What tariffs may mean for the company

During the call, one of the analysts asked Joffe about tariffs and how they may affect the business.

MPA has implemented tariff surcharges on products it brings in from China that are now subject to a 10% tariff from that country, and he has also listened to various public forums where its customers are talking about passing the tariffs on to the consumer, Joffe said.

The company has been fortunate in that over the past few years, it has become less dependent on China, he added.

“We don’t believe that our out-of-pocket will be material,” Joffe said. “And so at this point, again, we’re managing through it, but we think we’re going to be fine.”

Later, Joffe addressed the tariff situation again, saying that President Donald Trump’s recent proposals about the import tax continue to make headlines.

“At this point, there’s a lot of speculation and we will take appropriate action as necessary, including customer surcharges to offset the tariffs on goods from Mexico and Canada should they be imposed,” Joffe said.

American tariffs on imports from Canada and Mexico were set to go into effect Feb. 4 before Trump granted a 30-day suspension as the two countries addressed his worries about border security and drug trafficking.

In China, the company has notified its customers that it is starting a surcharge to offset the Asian nation’s recently announced tariffs, Joffe said.

“We continue to leverage our expertise and solid customer and supplier partnerships,” he added. “Our liquidity is strong, and we have the resources, capacity and capability to enhance shareholder value.”
As of 2023, automobile parts were, at a value of $14.6 billion, the seventh largest U.S. import from China.