Mission Statement, Vision, & Core Values of Motorcar Parts of America, Inc. (MPAA)

You see a company like Motorcar Parts of America, Inc. (MPAA) hitting record net sales of $757.4 million for fiscal year 2025, a 5.5% jump, but still posting a net loss of $19.5 million. How does a global leader in the non-discretionary aftermarket, which generated $45.5 million in operating cash, reconcile that sales growth with the bottom-line pressure? The answer isn't just in the balance sheet, but in their core principles-their Mission to be The Global Leader for Parts and Solutions and the EPICQ values (Excellence, Passion/Productivity, Integrity/Innovation, Community, Quality) that drive their remanufacturing model. Are your investment or strategic decisions defintely aligned with a company's long-term compass, or are you just chasing the quarterly revenue number?

Motorcar Parts of America, Inc. (MPAA) Overview

You're looking for a clear, no-nonsense view of Motorcar Parts of America, Inc. (MPAA), and the takeaway is simple: this is a global leader in the non-discretionary automotive aftermarket, built on a foundation of remanufacturing that drives strong cash flow and record sales.

Motorcar Parts of America was founded in 1968, starting as an importer of European and Japanese replacement parts before shifting its focus to becoming a North American leader in remanufactured alternators and starters. The company went public on NASDAQ in 1994, and that long tenure means they've seen every market cycle. Today, MPAA is a remanufacturer, manufacturer, and distributor of critical automotive parts, operating across three key segments: Hard Parts, Test Solutions and Diagnostic Equipment, and Heavy Duty.

Their extensive product portfolio covers thousands of individual products for nearly every vehicle on the road, from passenger cars to heavy-duty applications. This global operation engages over 4,700 employees across 13 locations in 7 countries, including the United States, Canada, and Mexico. For the full fiscal year 2025, the company's net sales reached a record $757.4 million. That's a solid business.

• Manufactures alternators and starters.
• Distributes brake calipers and rotors.
• Sells diagnostic testing equipment.

Fiscal 2025 Performance and Near-Term Momentum

Your focus should be on how MPAA is translating market demand into financial results, and the latest data shows clear momentum. For the full fiscal year 2025, which ended March 31, 2025, Motorcar Parts of America reported record net sales of $757.4 million, representing a 5.5% increase over the prior year. This growth is a direct result of their core business-Hard Parts-which includes rotating electrical and brake products, showing the strength of the non-discretionary (must-fix) repair market.

The company also saw record gross profit for FY2025, hitting $153.8 million, a significant jump of 16.1%. Here's the quick math: that gross margin improvement, up to 20.3% from 18.5% the previous year, shows their cost reduction efforts and production efficiency are defintely working. Plus, they generated $45.5 million in cash from operating activities for the year, which allowed them to reduce net bank debt by $32.6 million to $81.4 million.

Looking at the most recent data, Q2 of fiscal year 2026 (reported in November 2025) continued this trend with net sales of $221.5 million, up 6.4% from the same quarter last year. While the quarter saw a net loss of $2.1 million, the adjusted earnings per share (EPS) was $0.16, and they reduced net bank debt further to $56.7 million. That is a sign of a company focused on both growth and balance sheet health.

A Global Leader in the Aftermarket

Motorcar Parts of America isn't just a supplier; they are one of the most prominent global producers, marketers, and distributors in the automotive aftermarket. Their leadership position comes from a few key strategic advantages, primarily their commitment to remanufacturing (rebuilding parts to original specifications) and their continuous investment in technology.

Remanufacturing is a huge competitive advantage because it's a sustainable, circular economy model that lowers material costs and reduces environmental impact. They back this up with a 20,000 square-foot innovation center that uses proprietary, computer-controlled testing to ensure their new and remanufactured parts meet the highest durability standards. This focus on quality and logistics is why over 7,700 automotive parts retailers and distributors rely on MPAA. They are a company that understands the long game of vehicle maintenance.

To understand the full scope of their operational excellence, from their early history to their current market position, you should find out more about Motorcar Parts of America, Inc. (MPAA): History, Ownership, Mission, How It Works & Makes Money.

Motorcar Parts of America, Inc. (MPAA) Mission Statement

You're looking for the true north of a company like Motorcar Parts of America, Inc. (MPAA), because a mission statement isn't just a plaque on the wall; it's the blueprint for capital allocation and strategic decision-making. MPAA's mission is clear: to be the Global Leader for Parts and Solutions that Move Our World Today and Tomorrow. This statement is the guiding force behind their operational focus, which delivered record net sales of $757.4 million in fiscal year 2025, an increase of 5.5% year-over-year. It maps out a strategy that balances immediate market needs with long-term, sustainable growth.

This mission is more than an aspiration; it's a commitment to the automotive aftermarket that demands continuous improvement. The company's focus on remanufacturing, for example, is a direct execution of the 'Today and Tomorrow' part of the mission, showing how their core business inherently supports environmental responsibility. To understand the financial health that supports this mission, you can dive into Breaking Down Motorcar Parts of America, Inc. (MPAA) Financial Health: Key Insights for Investors.

Component 1: Global Leader for Parts and Solutions

Being a 'Global Leader' means more than just having a large footprint; it means setting the standard for the industry. For MPAA, this is grounded in their core values of Excellence (E) and Quality (Q), part of their internal EPICQ framework. The company doesn't just sell parts; it provides comprehensive solutions, covering Rotating Electrical, Brake Systems, Wheel Hubs and Bearings, and Electronics.

Their operational strength is visible in the numbers. Fiscal year 2025 saw a record gross profit of $153.8 million, a 16.1% jump, which demonstrates effective cost management and pricing power, both hallmarks of a market leader. This leadership is also backed by rigorous quality assurance, with facilities holding the IATF 16949 certification, the global standard for automotive quality management systems. This isn't just about volume; it's about being the defintely reliable choice for over 7,700 automotive parts retailers and distributors.

• Achieve record sales and gross profit.
• Set industry standards with certified quality.
• Provide comprehensive, reliable product solutions.

Component 2: Move Our World Today and Tomorrow

The 'Today and Tomorrow' phrase is the most strategic part of the mission, linking immediate market needs with future-proof sustainability and innovation. It's driven by the core values of Integrity/Innovation (I) and Community (C). The 'Today' is about keeping the existing fleet running with high-quality, non-discretionary aftermarket parts. The 'Tomorrow' is about future-proofing the business and the planet.

MPAA's remanufacturing process is the concrete example here. This process, which reconditions and re-utilizes durable components after rigorous testing, is estimated to conserve up to 95 percent of the energy and materials needed for new production. Here's the quick math: in fiscal 2022 alone, this focus on remanufacturing saved approximately 56,658 tons of raw materials compared to new product manufacturing processes. Plus, the company is actively strengthening its supply chain resilience, reducing reliance on Chinese suppliers to less than 25%, a proactive step to mitigate geopolitical risk and ensure long-term stability. This is a smart move for a company that generated $45.5 million in cash from operating activities in fiscal 2025.

Component 3: Commitment to Quality and Innovation (The EPICQ Engine)

The commitment to high-quality products and services is the engine that drives the mission, particularly through the core values of Passion/Productivity (P) and Quality (Q). Quality is non-negotiable in the automotive aftermarket; a faulty part can mean a major safety issue. So, MPAA invests heavily in its testing and development capabilities.

The company operates a 20,000 square-foot innovation center that runs around-the-clock, using advanced proprietary computer-controlled testing to ensure products meet the highest standards. This testing is not just pass/fail; it leverages data from thousands of real-world, on-vehicle tests to continually improve on original equipment (OE) specifications, resulting in enhanced product durability and reliability. This focus on continuous improvement is what allowed MPAA to narrow its net loss significantly in fiscal 2025 to $19.5 million, down from $49.2 million the prior year, showing operational efficiencies are taking hold. It's a culture of continuous improvement, not just compliance.

Motorcar Parts of America, Inc. (MPAA) Vision Statement

You're looking for the bedrock of Motorcar Parts of America, Inc.'s (MPAA) strategy, and honestly, their mission statement is the clearest articulation of their long-term vision. The company's aspiration is to be The Global Leader for Parts and Solutions that Move Our World Today and Tomorrow. This isn't just a poster slogan; it's a mandate to dominate the automotive aftermarket (aftermarket is the secondary market for vehicle parts) while actively preparing for the electric vehicle (EV) future.

This forward-looking statement maps directly to their fiscal year 2025 performance. Here's the quick math: MPAA achieved a record in Net Sales, climbing 5.5 percent to $757.4 million for the year ended March 31, 2025. That kind of growth, plus generating $45.5 million in cash from operating activities, shows they are funding today's leadership while investing in tomorrow.

The Global Leader for Parts and Solutions

The core of the vision is market leadership, and MPAA pursues this through a dual focus: strengthening their traditional remanufacturing business and aggressively building out their electrification capabilities. The automotive aftermarket is a massive, stable market, and their focus on remanufacturing-taking old parts and restoring them to like-new condition-is a huge competitive advantage. It's also inherently sustainable, which plays well with the 'Move Our World Today and Tomorrow' part of the vision. You see this in their strategic moves, like expanding their test solutions portfolio through their D&V Electronics subsidiary, which serves the EV and aerospace industries. This is how they future-proof the business.

Plus, they are defintely getting their house in order financially to support this global push. They reduced their net bank debt by $32.6 million in fiscal year 2025, bringing the total down to $81.4 million. That strengthens the balance sheet, freeing up capital for the kind of product innovation and distribution excellence needed to truly be a global leader.

EPICQ: The Core Values Driving Performance

MPAA's strategic execution is governed by a set of five core values, which they acronymize as EPICQ: Excellence, Passion/Productivity, Integrity/Innovation, Community, and Quality. These values are the filters for every major decision, from supply chain management to product development, and they are what you should watch as an investor.

• E: Excellence: Consistently exceed standards.
• P: Passion / Productivity: Drive continuous improvement and efficiency.
• I: Integrity / Innovation: Ethical operations and future-focused solutions.
• C: Community: Responsible corporate citizenship and employee support.
• Q: Quality: Deliver superior, reliable products.

Excellence and Quality in Remanufacturing

Excellence and Quality (E & Q) are inseparable in the aftermarket business; a failed part means a lost customer. MPAA's focus here is on their core competency: remanufacturing. This process can reduce material and energy consumption by up to 95 percent compared to new manufacturing, making it a green business by nature. This commitment shows up in the numbers, too. Their Gross Profit increased by a significant 16.1 percent to $153.8 million in fiscal 2025, pushing the Gross Margin to 20.3 percent. That margin expansion suggests operational efficiencies-better remanufacturing processes, better sourcing-are taking hold, which is a direct result of their commitment to Quality and operational Excellence.

Passion/Productivity and Integrity/Innovation

The P & I values map directly to how MPAA manages risk and drives efficiency. Honesty, or Integrity, is crucial in a regulated industry, but Innovation is where the opportunity is. They are actively reducing their reliance on Chinese suppliers, which now represent less than 25% of their supply chain, a smart move to mitigate geopolitical risk and improve logistics. This strategic shift, driven by Innovation in sourcing and the Productivity of their North American footprint, helps ensure a more stable supply chain.

While the company reported a Net Loss of $19.470 million for fiscal year 2025, the focus on Passion and Productivity is what drives the top-line growth and cash generation that will eventually turn that around. The fact that their Q2 2026 revenue (reported in November 2025) hit $221.5 million suggests the operational momentum is continuing. For a deeper dive into how these factors impact the bottom line, you can check out Breaking Down Motorcar Parts of America, Inc. (MPAA) Financial Health: Key Insights for Investors.

Community: The Social Bottom Line

The Community (C) value is their commitment to corporate social responsibility (CSR), which is critical for long-term brand equity and employee retention. This isn't just about donations; it's about the people who make the parts. MPAA has increased the percentage of females in their global workforce to 39 percent from 34 percent in prior years, showing a clear focus on increasing diversity. They also provide substantial employee support, including medical staff at manufacturing facilities and, in a prior fiscal year, provided 650,000 free or reduced-cost meals. This kind of investment in their workforce improves loyalty and, ultimately, Productivity. It's a smart investment, not just a feel-good expense.

Motorcar Parts of America, Inc. (MPAA) Core Values

You're looking for a clear line between a company's stated values and its financial performance. Honestly, for Motorcar Parts of America, Inc. (MPAA), that line is defintely visible in the numbers. Their mission is direct: to be the Global Leader for Parts and Solutions that Move Our World Today and Tomorrow.

Their vision, inferred from their strategic direction, centers on market leadership, operational excellence, and, crucially, sustainability. This isn't just corporate speak; it's the framework that drove their fiscal 2025 results, where net sales hit a record $757.4 million. That kind of growth, a 5.5 percent increase, doesn't happen without a deeply ingrained culture. The core values, summarized by the acronym EPICQ, are the operating manual for that culture.

For a deeper dive into the company's structure and operations, you can check out Motorcar Parts of America, Inc. (MPAA): History, Ownership, Mission, How It Works & Makes Money.

Excellence

Excellence, for Motorcar Parts of America, Inc., is about pushing beyond industry standards, not just meeting them. It's a commitment to operational excellence (OpEx) that shows up on the income statement. For fiscal 2025, the company's gross profit increased 16.1 percent to a record $153.8 million. Here's the quick math: that jump in profit, significantly outpacing the sales growth, reflects better cost efficiencies and a higher-quality product mix that commands better pricing.

This value is demonstrated through their commitment to the IATF 16949 quality management standard for their facilities. They don't just talk about quality; they certify it. One clean one-liner: Quality is a cost-saver in the long run.

• Certify facilities to IATF 16949 standard.
• Implement rigorous testing procedures.
• Drive gross profit growth above sales growth.

Passion / Productivity

The 'P' in EPICQ covers the human capital side, which is the most valuable asset on any balance sheet. Productivity is about doing more with the same or fewer resources, and Motorcar Parts of America, Inc. has been laser-focused on this. The company generated $45.5 million in cash from operating activities during fiscal 2025. That's a strong indicator of efficient operations and a quick cash conversion cycle, which is crucial in the capital-intensive automotive aftermarket.

The company's leadership has publicly emphasized that the passion of its employees is what drives its continuous improvement (CI) culture. They are constantly refining their build specifications based on data from thousands of tests on parts after years of real-world use. This focus on process improvement and cost efficiencies is what allowed them to narrow their net loss for the year to $19.5 million, a significant improvement from the prior fiscal year.

Integrity / Innovation

Integrity and Innovation are two sides of the same coin in the aftermarket: you need the ethical foundation to support the technological risk. The innovation value is most visible in their remanufacturing business model (the reconditioning of used components), which is inherently an environmental, social, and governance (ESG) play. This process is estimated to save up to 91 percent of the energy otherwise expended in producing a new part.

On the Integrity side, the company maintains a commitment to strong corporate governance. Their board of directors is ethnically diverse, including three women and three African Americans among the eight independent directors. This diversity in leadership helps ensure a broader perspective when making strategic decisions, like the move to expand their product range with 120 new part numbers in March 2025.

Community

Community for Motorcar Parts of America, Inc. extends from their local operating areas to the global environment. Their remanufacturing facilities in Torrance, California, and Tijuana, Mexico, are designed to be environmental leaders. They focus on recycling most materials, including copper, components, scrap, and water.

This commitment to the community also translates into tangible financial benefits, reducing waste and raw material costs. They also invested in a new state-of-the-art distribution center in Tijuana with high-tech, energy-efficient forklift machinery. Plus, the company has actively worked to reduce its carbon footprint by consolidating product shipments to customers, which cuts down on fuel consumption and air quality impact. They are using their business model to be a responsible corporate citizen.

Quality

Quality is the final check and balance for all the other values. For a supplier of non-discretionary replacement parts, like alternators and brake systems, quality isn't optional; it's a safety and liability issue. Their commitment is backed by a 20,000 square-foot innovation center that runs around-the-clock, utilizing advanced computer-controlled testing to ensure products meet the highest standards.

This focus on product quality supports their financial stability. By providing durable and reliable parts, they maintain strong relationships with over 7,700 automotive parts retailers and distributors. This customer loyalty is a key factor in their ability to reduce net bank debt by $32.6 million in fiscal 2025, bringing the total down to $81.4 million. High quality means fewer returns and stronger cash flow. It's a simple equation.