Motorcar Parts of America (MPAA) Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference summary

Business overview and market positioning

• Supplies non-discretionary hard parts for the automotive aftermarket, including rotating electrical and brake products, serving light to heavy-duty vehicles.

• Legacy products like alternators and starters remain a major revenue source, while new brake programs drive growth.

• Expanded into Mexico with strong results, signaling global growth opportunities beyond the U.S. and Canada.

• Key distribution through major retailers and professional installer markets under the Quality-Built brand.

• International footprint and infrastructure enable expansion into Central and South America, Southeast Asia, India, and Malaysia.

Financial performance and capital allocation

• Generated $39 million in positive cash flow, paid down $35 million in debt, and maintains strong liquidity with just over $100 million in net debt.

• Cash conversion rate on adjusted EBITDA is 40%-47%, with expectations for continued strong performance.

• Working capital neutralization efforts, including a supply chain financing program, are expected to generate $20 million in additional cash.

• Considering capital allocation options such as further debt reduction and stock repurchases.

• Most infrastructure investments are complete, reducing future capital needs and supporting growth.

Growth drivers and market trends

• Margin accretion expected from evolving brake product lines and increased factory capacity utilization.

• New product launches and accelerated part introductions support top-line and bottom-line growth.

• Non-discretionary nature of products insulates business from consumer spending slowdowns; consumers shift from OE to aftermarket parts.

• Older vehicle fleet and rising average vehicle age drive sustained demand for replacement parts.

• International markets, especially Mexico, present significant growth as repair habits shift from self-rebuild to purchasing remanufactured parts.