Derek Soderbergh's questions to MOTORCAR PARTS OF AMERICA (MPAA) leadership • Q1 2026
Question
Derek Soderbergh of Cantor Fitzgerald inquired about the recent and forecasted impact of tariffs on financial results, the assumptions behind the raised revenue guidance, and the next significant growth drivers for the rotating electric and braking business segments.
Answer
CFO David Lee detailed that the net tariff impact decreased to $1.4 million from $4.6 million in the prior quarter and is expected to continue declining sequentially. While acknowledging tariff pass-throughs contributed to the raised sales guidance, he and CEO Selwyn Joffe emphasized that the majority of the increase was from record organic sales growth. Selwyn Joffe identified the professional installer market as a key growth area for the 'Quality Built' brand and noted that the brake-related business, particularly brake pads, is still in its early stages with substantial runway for expansion in North America and globally.