Motorcar Parts of America Inc (MPAA) 2026 Q1 法說會逐字稿

Hello and thank you for standing by. My name is Lacey and I'll be your conference operator today. At this time, I would like to welcome everyone to the Motorcar Parts of America Inc fiscal 2026 first quarter conference call and webcast (Operator Instructions). Thank you. I would now like to turn the conference over to Gary Maier. You may begin.

您好，感謝您的支持。我叫萊西 (Lacey)，今天我將擔任您的會議主持人。現在，我歡迎大家參加美國汽車零件公司 2026 財年第一季電話會議和網路直播（操作員指令）。謝謝。現在我想將會議交給加里·邁爾 (Gary Maier)。你可以開始了。

Thank you, Lacey, and thanks everyone for joining us for our call today. Before I turn the call over to Selwyn Joffe, Chairman, President and Chief Executive Officer; and David Lee, the company's Chief Financial Officer, I'd like to remind everyone of the Safe Harbor Statement included in today's press release. The Private Securities Litigation Reform Act of 1995 provides a safe harbour for certain forward-looking statements.

謝謝你，萊西，也謝謝大家今天參加我們的電話會議。在我將電話轉給董事長、總裁兼執行長 Selwyn Joffe 和公司財務長 David Lee 之前，我想提醒大家注意今天的新聞稿中包含的安全港聲明。1995 年《私人證券訴訟改革法》為某些前瞻性聲明提供了安全港。

Including statements made during today's conference call. Such forward-looking statements are based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by the company. Actual results may differ from those projected in these forward-looking statements.

包括今天電話會議所作的聲明。此類前瞻性陳述是基於公司目前對未來發展及其對公司的潛在影響的預期和信念。無法保證影響公司的未來發展將是公司所預期的。實際結果可能與這些前瞻性陳述中的預測不同。

Forward-looking statements involve significant risks and uncertainty, some of which are beyond the control of the company and subject to change based on various factors. In particular, expectations about anticipated future growth and opportunities with customers may not be achieved.

前瞻性陳述涉及重大風險和不確定性，其中一些超出公司的控制範圍，並可能因各種因素而發生變化。特別是，對未來成長和客戶機會的預期可能無法實現。

The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new. Information future events or otherwise. For more detailed discussion of some of the ongoing risks and uncertainties of the company's business, I refer you to the various filings with the SEC. I would now like to begin the call, turn it over to Selwyn to begin.

本公司不承擔公開更新或修改任何前瞻性聲明的義務，無論是否由於新的因素。資訊未來事件或其他情況。有關公司業務中一些持續存在的風險和不確定性的更詳細討論，請參閱向美國證券交易委員會提交的各種文件。現在我想開始通話，交給塞爾溫開始。

Thank you, Gary. I appreciate everyone joining us today. We're off to a solid start for fiscal 2026. We are encouraged by our first quarter performance, reflecting record net sales and gross profits for our fiscal first quarter.

謝謝你，加里。我感謝今天與我們一起的各位。2026 財政年度我們有一個好的開始。我們對第一季的業績感到鼓舞，這反映了我們第一財季創紀錄的淨銷售額和毛利。

Equally important, we generated solid cash flow from operating activities, reduced net debt -- net bank debt and continued to repurchase shares. All of this underscores our commitment to success as a leading supplier of nondiscretionary automotive aftermarket parts.

同樣重要的是，我們從經營活動中產生了穩定的現金流，減少了淨債務——銀行淨債務，並繼續回購股票。所有這些都凸顯了我們作為非必需汽車售後零件領先供應商取得成功的承諾。

Our team is focused on continuous improvement and success. We are excited by the opportunities for growth. We offer a well- respected portfolio of products and services and have the capacity and ability to further leverage our state of the art North American operational and distribution footprint.

我們的團隊致力於持續改進和成功。我們對成長機會感到興奮。我們提供備受推崇的產品和服務組合，並且有能力進一步利用我們最先進的北美營運和分銷網路。

Our hard parts business, led by our rotating electrical 50 plus year flagship category continues to generate solid performance. Nondiscretionary parts cannot be deferred. If parts fail, your car cannot be driven. According to industry reports, the average age of US light vehicles has risen to 12.8 years from 12.6 years in 2024.

我們的硬體業務，以旋轉電氣 50 多年的旗艦產品類別為主導，繼續保持穩健的業績。非自由裁量部分不能延遲。如果零件故障，您的汽車就無法行駛。根據產業報告顯示，到2024年，美國輕型汽車的平均車齡將從12.6年上升至12.8年。

In addition, the number of vehicles on the road climbed to 293.5 million from 289 million just a year ago. We expect increased replacement opportunities for the life of the vehicle, particularly with consumers holding on to their cars for longer.

此外，道路上的車輛數量從一年前的 2.89 億輛增加到了 2.935 億輛。我們預計，隨著汽車使用壽命的延長，更換汽車的機會將會增加，尤其是當消費者的汽車使用時間更長時。

We are encouraged by the continued success of our second largest product category, brake offerings, which includes brake calipers manufactured at our state of the art production operation in Mexico. Our team is doing an exceptional job to further enhance market share for the entire brake product line as well as all of our other nondiscretionary product offerings.

我們第二大產品類別－煞車產品的持續成功令我們感到鼓舞，其中包括在墨西哥最先進的生產基地生產的煞車卡鉗。我們的團隊正在出色地完成工作，以進一步提高整個煞車產品線以及所有其他非必需產品的市場份額。

We continue to leverage our strengths, offering our customers great products, industry leading SKU coverage and order fill rates, supported by value added merchandising and marketing support. In short, we are all committed and focused on our customers, offering quality products and services with rational pricing. All of our products are offered to the professional installer market under our quality built brand, and we are gaining market share.

我們將繼續發揮我們的優勢，為客戶提供優質的產品、行業領先的 SKU 覆蓋率和訂單完成率，並提供增值商品和行銷支援。簡而言之，我們都致力於以客戶為中心，以合理的價格提供優質的產品和服務。我們所有的產品都以我們優質的品牌提供給專業安裝商市場，我們正在獲得市場份額。

As production volume increases for certain newer hard part products such as brake-related offerings, we expect enhanced operating efficiency and margin improvement. With regard to our heavy duty business, we continue to leverage our reputation and industry

隨著某些較新的硬體零件產品（如煞車相關產品）的產量增加，我們預計營運效率和利潤率將會提高。就我們的重型業務而言，我們繼續利用我們的聲譽和行業

position in this market, particularly with regard to supplying alternators and starters to our channel partners who are leaders in the heavy duty aftermarket segment.

在這個市場上佔據領先地位，特別是在向重型售後市場領域的領先通路合作夥伴提供交流發電機和起動機方面。

Our growth opportunities continue to gain momentum. We are becoming an increasingly important supplier to the heavy duty rotating electrical market with multiple opportunities to expand our quality built brand name to this market.

我們的成長機會持續增強。我們正在成為重型旋轉電氣市場越來越重要的供應商，並有多個機會將我們優質的品牌擴展到這個市場。

We continue to experience increased demand for our aftermarket parts in Mexico, which complements our existing strategic and operational and distribution footprint there. As our US based retailers and warehouse distributors, customers expand through Latin and South America, we are well positioned to support their growth and benefit.

我們在墨西哥的售後零件市場需求持續成長，這補充了我們在當地的現有策略、營運和分銷足跡。隨著我們位於美國的零售商和倉儲分銷商以及客戶在拉丁美洲和南美洲的擴張，我們已準備好來支持他們的成長和利益。

With regard to our diagnostic business, our JBT-1 bench top tester leads the industry and the installed base is continuing to grow. Additional service-related revenue is expected as more testers are deployed, which includes repairs, software and database updates. We also expect more opportunities outside North America as the business evolves.

就我們的診斷業務而言，我們的 JBT-1 桌上型測試儀處於行業領先地位，安裝基礎仍在持續成長。隨著部署更多的測試人員，預計將帶來額外的服務相關收入，其中包括維修、軟體和資料庫更新。隨著業務的發展，我們也預期北美以外會有更多機會。

We continue to work on mitigating tariffs with customer price increases and important cost reduction initiatives, including strategic supply chain sourcing changes. From a positive perspective, we believe tariffs present some strategic competitive advantages given the strength of our North American footprint and being USMCA compliant.

我們將繼續致力於透過提高客戶價格和採取重要的成本削減措施（包括策略性供應鏈採購變化）來降低關稅。從正面的角度來看，鑑於我們在北美的影響力和遵守 USMCA 的規定，我們認為關稅具有一些戰略競爭優勢。

I should emphasize that we have been focused on executing strategies designed to be less dependent on Chinese supply chain for a number of years, whether it be components or parts. In short, favourable long-term industry dynamics continue to bode well for the company, and we are extremely well positioned for sustainable top and bottom line growth.

我要強調的是，多年來我們一直致力於執行減少對中國供應鏈依賴的策略，無論是零件還是零件。簡而言之，長​​期良好的行業動態繼續對公司有利，我們已做好充分準備實現可持續的營收和利潤成長。

As I've mentioned, the outlook is bright for nondiscretionary aftermarket parts for the internal combustion engine in particular. We are focused on leveraging our capability and capacity to offer a broad range of applications for all makes and models whether newer or older vehicles.

正如我所提到的，內燃機非必需售後零件的前景尤其光明。我們專注於利用我們的能力和產能為所有品牌和型號（無論是較新的還是較舊的車輛）提供廣泛的應用。

Before I turn the call over to David to review our results in greater detail, let me summarize. From a sales perspective, we expect continued organic growth for our business, supported by the favourable industry tailwinds I previously mentioned. Our commercial heavy-duty market continues to grow.

在我將電話轉給大衛以更詳細地回顧我們的結果之前，請允許我總結一下。從銷售角度來看，在前面提到的有利產業順風的支持下，我們預期我們的業務將繼續實現有機成長。我們的商用重型卡車市場持續成長。

Our brake-related business is gaining further traction, particularly with brake calipers. In addition, our sales in the Mexican market are growing nicely, and we expect this momentum will continue and expand throughout the region. And finally, our diagnostic business is growing nicely, and we look forward to ongoing success.

我們的煞車相關業務正在獲得進一步的發展，尤其是煞車卡鉗。此外，我們在墨西哥市場的銷售成長良好，我們預計這種勢頭將持續並擴展到整個地區。最後，我們的診斷業務發展良好，我們期待繼續取得成功。

From a gross margin perspective, we are encouraged by the increase in the year over year gross margin despite the headwinds related to tariffs, increasing market share gains, particularly for brake related products should continue to enhance our gross margin. With continued operating efficiencies and supply chain cost reduction initiatives, we expect further margin growth.

從毛利率的角度來看，儘管面臨關稅方面的不利因素，但毛利率同比仍有所增長，這令我們感到鼓舞，市場份額的增加，特別是剎車相關產品的市場份額的增加，應該會繼續提高我們的毛利率。隨著營運效率的持續提高和供應鏈成本削減措施的實施，我們預計利潤率將進一步成長。

Finally, sales growth, gross margin improvement and an ongoing focus on neutralization of working capital support our ability to further reduce debt, repurchase shares and to take advantage of other opportunities to enhance shareholder value and achieve our financial performance targets.

最後，銷售額成長、毛利率提高以及對營運資本中和的持續關注支持我們進一步減少債務、回購股票以及利用其他機會來提高股東價值並實現我們的財務績效目標。

As I've previously mentioned and as referenced in the exhibit to our earnings release, there are various factors related to our financial performance that are noncash and beyond our control, particularly with regard to non cash mark to market foreign exchange, which can have a positive or negative impact on our Mexico lease liabilities and forward contracts that we purchase.

正如我之前提到的以及我們收益報告附件中提到的，與我們的財務業績相關的各種因素都是非現金的並且是我們無法控制的，特別是非現金按市價計價的外匯，這些因素可能會對我們的墨西哥租賃負債和我們購買的遠期合約產生積極或消極的影響。

We are focused on opportunities to minimize non cash expenses, such as gains or losses related to foreign exchange, including funding our Mexican operations of pesos from our sales in Mexico. As our sales in Mexico continue to grow, we have reduced our purchases of forward peso contracts. We expect over time, we will eliminate the need to purchase these contracts. I would now like to turn the call over to David.

我們專注於尋找機會盡量減少非現金支出，例如與外匯相關的收益或損失，包括利用我們在墨西哥的銷售額為我們的墨西哥業務提供比索資金。隨著我們在墨西哥的銷售額持續成長，我們減少了遠期比索合約的購買量。我們預計隨著時間的推移，我們將不再需要購買這些合約。現在我想把電話轉給大衛。

Thank you, Selwyn, and good morning, everyone. Let me summarize key financial performance metrics for the fiscal 2026 first quarter that we highlighted in this morning's news release and additional information will be available in the 10-Q that will be filed later today.

謝謝你，塞爾溫，大家早安。讓我總結一下我們在今天上午的新聞稿中強調的 2026 財年第一季的關鍵財務績效指標，更多資訊將在今天晚些時候提交的 10-Q 中提供。

As Selwyn referenced earlier, net sales increased 10.9% to a first quarter record of $188.4 million, gross profit increased 16.3% to a first quarter record of $33.9 million. Operating income increased to $20.1 million from an operating loss of $6.5 million in the prior year.

正如塞爾溫先前所提到的，淨銷售額成長 10.9%，達到第一季創紀錄的 1.884 億美元，毛利成長 16.3%，達到第一季創紀錄的 3,390 萬美元。營業收入從上年的 650 萬美元營業虧損增至 2,010 萬美元。

We generated $10 million of cash from operating activities and reduced net bank debt by $7 million to $74.4 million, repurchased 197,796 shares for $2 million at an average price of $9.94.

我們從經營活動中獲得了 1,000 萬美元的現金，並將銀行淨債務減少了 700 萬美元，降至 7,440 萬美元，以 200 萬美元的平均價格回購了 197,796 股股票。

Now let me discuss our results in more detail. Net sales for the fiscal 2026 first quarter increased 10.9% to a first quarter record of $188.4 million from $169.9 million in the prior year. Gross profit for the fiscal 2026 first quarter increased 16.3% to a first quarter record of $33.9 million from $29.2 million a year earlier.

現在讓我更詳細地討論我們的結果。2026 財年第一季淨銷售額從去年同期的 1.699 億美元成長 10.9%，達到創紀錄的 1.884 億美元。2026 財年第一季毛利從去年同期的 2,920 萬美元成長 16.3%，達到創紀錄的 3,390 萬美元。

I should mention that gross profit for the quarter was also impacted by non cash expenses. The noncash expenses reflect core and finished good premium amortization and revaluation of cores on customer shelves, which are unique to certain of our products and required by GAAP. The total for these non cash expenses in the quarter was approximately $3.9 million or a 2.1% impact to gross margin.

我應該要提到，本季的毛利也受到非現金支出的影響。非現金費用反映了核心和成品溢價攤銷以及客戶貨架上核心的重估，這是我們某些產品所獨有的，也是 GAAP 所要求的。本季這些非現金支出總額約為 390 萬美元，對毛利率的影響為 2.1%。

Gross margin for the fiscal 2026 first quarter was 18% compared with 17.2% a year earlier. In addition to the noncash expenses previously explained, gross margin for the fiscal 2026 first quarter was also impacted by cash expenses of $1.4 million or a 0.8% impact to gross margin as detailed in Exhibit 2 of this morning's earnings press release.

2026 財年第一季的毛利率為 18%，去年同期為 17.2%。除了先前解釋的非現金支出外，2026 財年第一季的毛利率還受到 140 萬美元現金支出的影響，即對毛利率產生 0.8% 的影響，如今天上午的收益新聞稿附件 2 所示。

Aside from higher sales volume, particularly from certain of our newer product offerings, which supports increased absorption of costs, we remain focused on other initiatives to enhance gross margins.

除了提高銷售量（特別是某些新產品的銷售量）以支持增加成本吸收之外，我們仍然專注於其他措施來提高毛利率。

Operating expenses were $13.8 million compared with $35.6 million last year, which benefited from an $8.3 million non cash mark to market foreign exchange gain compared with an $11.1 million non cash mark to market foreign exchange loss in the prior year.

營運費用為 1,380 萬美元，而去年為 3,560 萬美元，這得益於 830 萬美元的非現金按市價計價外匯收益，而前一年則為 1,110 萬美元的非現金按市價計價外匯損失。

Operating income for the fiscal 2026 first quarter increased to $20.1 million from an operating loss of $6.5 million in the prior year. Excluding the non cash foreign exchange impact of lease liabilities and forward contracts, operating income increased 153.6% to $11.7 million compared with $4.6 million in the prior year.

2026 財年第一季的營業收入從上年的 650 萬美元營業虧損增至 2,010 萬美元。不包括租賃負債和遠期合約的非現金外匯影響，營業收入較上年的 460 萬美元增長 153.6%，達到 1,170 萬美元。

Interest expense for the fiscal first quarter decreased by $1.6 million to $12.8 million from $14.4 million a year ago, reflecting lower average outstanding balances under the company's credit facility and lower interest rates compared with a year ago.

第一財季的利息支出從去年同期的 1,440 萬美元減少 160 萬美元至 1,280 萬美元，反映了公司信貸安排下的平均未償還餘額較低以及利率與去年同期相比較低。

For the first quarter, income tax expense was $2.4 million compared with $178,000 income tax benefit in the prior year. The effective tax rate for the fiscal first quarter reflects, in part, the inability to recognize the benefit of losses at certain jurisdictions.

第一季的所得稅支出為 240 萬美元，而去年同期的所得稅收益為 178,000 美元。第一財季的有效稅率在一定程度上反映了無法確認某些司法管轄區的損失收益。

However, we expect these losses will be utilized against future profits, which will benefit future tax rates. Obviously, there are various factors impacting the tax effect.

然而，我們預計這些損失將用於抵消未來的利潤，這將有利於未來的稅率。顯然，影響稅收效果的因素是多方面的。

Net income for the fiscal '26 first quarter was $3 million or $0.15 per diluted share compared with a net loss of $18.1 million or $0.92 per share for the prior year. Net income benefited from noncash items of $1.3 million or $0.07 per diluted share and was impacted by cash expenses of $1.1 million or $0.05 per diluted share as detailed in Exhibit 1.

26 財年第一季的淨收入為 300 萬美元，即每股 0.15 美元，而去年同期的淨虧損為 1,810 萬美元，即每股 0.92 美元。淨收入受益於 130 萬美元或每股攤薄收益 0.07 美元的非現金項目，並受到 110 萬美元或每股攤薄收益 0.05 美元的現金支出的影響，如附件 1 所示。

As previously explained, higher sales volume and operating efficiencies will further improve results. EBITDA for the fiscal first quarter was $20.7 million, reflecting the $1.7 million benefit of non cash items, offset by $1.4 million of onetime cash expenses detailed in Exhibit 3 of this morning's earnings press release. EBITDA before the impact of non cash expenses and onetime cash expenses mentioned above, was $20.4 million for the first quarter.

如前所述，更高的銷售量和營運效率將進一步改善業績。第一財季的 EBITDA 為 2,070 萬美元，反映了 170 萬美元的非現金項目收益，但被今天上午收益新聞稿附件 3 中詳述的 140 萬美元的一次性現金支出所抵消。扣除上述非現金費用和一次性現金費用影響之前的 EBITDA 第一季為 2,040 萬美元。

Now let me move on to cash flow and key corporate items.

現在讓我來談談現金流和關鍵的公司專案。

The company generated cash of approximately $10 million in operating activities during the fiscal 2026 first quarter compared with a use of cash of approximately $20.8 million from operating activities a year ago. We remain focused on increasing operating profit and gross margin and generating positive cash flow, supported by organic growth from customer demand and operating efficiencies from our global footprint expansion.

該公司在 2026 財年第一季的經營活動中產生的現金約為 1,000 萬美元，而去年同期的經營活動現金使用量約為 2,080 萬美元。我們將繼續專注於提高營業利潤和毛利率並產生正現金流，這得益於客戶需求帶來的有機成長和全球業務擴張帶來的營運效率。

In addition to our goal of generating increased operating profit, we expect further opportunities to neutralize working capital, supported by customer demand -- customer product demand planning, enhanced inventory management and extending our vendor payment terms.

除了提高營業利潤的目標之外，我們還期望透過客戶需求（客戶產品需求計劃、加強庫存管理和延長供應商付款期限）來進一步中和營運資本。

Net bank debt decreased by $7 million during the fiscal 2026 first quarter to $74.4 million from $81.4 million. For the past two years through June 30, 2025, we have generated cash from operating activities of approximately $115 million or approximately $5.87 per outstanding share on average and we reduced net bank debt by approximately $94 million. Our liquidity remains very strong, with total cash and availability of approximately $147 million.

2026 財年第一季度，銀行淨債務從 8,140 萬美元減少 700 萬美元至 7,440 萬美元。截至 2025 年 6 月 30 日的過去兩年中，我們從經營活動中產生的現金約為 1.15 億美元，平均每股流通股約 5.87 美元，並且我們減少了約 9,400 萬美元的淨銀行債務。我們的流動性仍然非常強勁，總現金和可用資金約為 1.47 億美元。

I should mention that for every 1 point reduction in interest rates, interest expense for accounts receivable discount programs offered by customers is reduced by approximately $6 million.

值得一提的是，利率每降低 1 個點，客戶提供的應收帳款折扣計劃的利息支出就會減少約 600 萬美元。

The company has increased its fiscal 2026 sales guidance since issuing annual guidance in June. This increase reflects a strong start to the fiscal year and incorporates the impact of tariff pass-throughs. The increased sales guidance is now between $800 million and $820 million, representing between 5.6% and 8.3% year over year growth.

自 6 月發布年度指引以來，該公司已上調了 2026 財年的銷售指引。這一增長反映了本財年的強勁開局，並考慮了關稅轉嫁的影響。目前，銷售額預期已上調至 8 億美元至 8.2 億美元之間，年增 5.6% 至 8.3%。

The company reaffirms the operating income guidance range to between $86 million and $91 million, representing 4.3% and 10.4% year over year growth, reflecting a combination of tariff pass-throughs and cost mitigation measures.

該公司重申營業收入預期範圍在 8,600 萬美元至 9,100 萬美元之間，年增 4.3% 至 10.4%，反映了關稅轉嫁和成本緩解措施的結合。

The company estimates depreciation and amortization will be approximately $11 million. These estimates reflect the expected impact of tariffs enacted as of today, do not include certain non-cash items and onetime expenses. For further explanation on the reconciliation of items that impacted results and non-GAAP financial measures, please refer to Exhibits 1 through 3 in this morning's earnings press release.

該公司估計折舊和攤提費用約為 1,100 萬美元。這些估計值反映了截至今天實施的關稅的預期影響，不包括某些非現金項目和一次性費用。有關影響結果和非公認會計準則財務指標的項目調節的進一步解釋，請參閱今天上午的收益新聞稿中的附件 1 至 3。

I would now like to open the line for questions.

現在我想開始回答問題。

(Operator Instructions) Derek Soderberg, Cantor Fitzgerald.

（操作員指示）德里克·索德伯格，康托·菲茨杰拉德。

Yeah, hey guys, thanks for taking the questions, really good results here, wondering if you could sort of give a high level description of what you face this quarter as it relates to tariffs versus last quarter. Looks like there's a smaller impact from tariffs. What was sort of the difference there?

是的，嘿夥計們，感謝你們回答問題，這裡的結果真的很好，想知道你是否可以大致描述一下本季度與上一季度相比在關稅方面面臨的情況。看起來關稅的影響較小。那裡有什麼不同？

And then just looking at guidance, it looks like you're assuming, some additional pass throughs that maybe you previously expected. What are some of your assumptions on, that you're making on tariffs for this year? Can you just kind of take a high level, approach to explaining what you're seeing out there for tariffs?

然後僅查看指導，看起來您正在假設一些您之前可能預期的額外傳遞。您對今年的關稅有何假設？您能否從高層次的角度來解釋您所看到的關稅情況？

Hi Derek, that's a good question. So, to recap, in our March quarter, we had approximately $4.6 million impact of those net tariff costs. As you pointed out in this June quarter, we had a much lower $1.4 million that impact of tariffs. For our September quarter, which is our second quarter, we do expect a little bit more impact, but it was sequentially continue to come down, so less impact.

嗨，德里克，這是個好問題。因此，總結一下，在我們三月的季度中，這些淨關稅成本的影響約為 460 萬美元。正如您在今年 6 月季度指出的那樣，關稅的影響金額要低得多，僅為 140 萬美元。對於我們的第二季度，即九月份，我們確實預計影響會更大一些，但影響會繼續下降，因此影響較小。

Got it. And then for full year guidance, I mean you cited, some pass throughs on tariffs. I guess what are some of the assumptions you made for the full year for tariffs?

知道了。然後對於全年指導，我的意思是您提到的一些關稅轉嫁。我想知道您對全年關稅做了哪些假設？

It looks like, we had kind of that blanket tariff come off and you know there's a bit of a pause, but maybe that comes back on. What were some of the assumptions that you guys sort of made for the full year that led you to raise the revenue range?

看起來，我們已經取消了那種一攬子關稅，你知道有一點暫停，但也許它會重新恢復。你們對全年做出了哪些假設，從而提高了收入範圍？

So, we did increase our sales guidance, we're not breaking out how much of that increase is related to tariff pass throughs, it's confidential sensitive information regarding customer price increases. So it's all included in that higher guidance.

因此，我們確實提高了銷售預期，但我們不會透露其中有多少成長與關稅轉嫁有關，這是有關客戶價格上漲的機密敏感資訊。所以這一切都包含在更高層次的指導中。

Yeah, and I do want to point out that regardless of tariffs, we're record sales, so that's right, yeah, the majority of our sales increases on tariffs.

是的，我確實想指出，無論關稅如何，我們的銷售額都創下了紀錄，所以沒錯，我們的銷售額大部分都是因關稅而增長的。

That's correct.

沒錯。

Got it. That's helpful. And then Selwyn, just, sort of looking at the rotating electric and breaking businesses, what, what's sort of the next major growth opportunity in either of those segments?

知道了。這很有幫助。然後塞爾溫，只是看看旋轉電動和斷電業務，這兩個領域的下一個主要成長機會是什麼？

I think you've sort of mentioned geographic expansion in Mexico, obviously market share, growth is, you guys have seen that, maybe it's going to be new products in those segments. What's sort of the next major growth opportunity now of those segments?

我想你已經提到了墨西哥的地理擴張，顯然市場份額、成長，你們已經看到了，也許這將是這些領域的新產品。這些領域的下一個主要成長機會是什麼？

Well, I think, look, we, we're still very small in the professional installer market -- in the pure professional installer market. We sell our customers who sell to both installers and DIY, and we have a large share there, but the pure professional market, we're still small and there's a significant amount of upside growth in our branded product, and we're seeing that.

嗯，我認為，我們在專業安裝市場——純專業安裝市場——的份額仍然很小。我們向安裝商和 DIY 客戶提供產品，我們在那裡佔有很大的份額，但在純粹的專業市場中，我們的規模仍然很小，而且我們的品牌產品還有很大的成長空間，我們正在看到這一點。

And, I'm just really optimistic about what the brand can do, what quality build. And so I think that's, and that's across the board for all of our categories. I think there's opportunity in all of our categories for that. On the break related product side, I mean, we're still fresh. I mean, we've got a long way to go. We've got plenty of capacity. We get more efficient as we grow.

而且，我對這個品牌所能做的事情以及打造的品質非常樂觀。所以我認為這是針對我們所有類別的。我認為我們所有的類別都存在這樣的機會。在休息相關產品方面，我的意思是，我們仍然很新鮮。我的意思是，我們還有很長的路要走。我們有足夠的容量。隨著我們的成長，我們的效率也越來越高。

And then that's just the North American market, I mean. And so, we have lots of opportunities throughout the world, quite frankly. I mean, I think the North Americans is plenty for now, but We're starting definitely to look over our shoulder to see what else is out there in terms of bigger opportunities on a more global basis.

我的意思是，這只是北美市場。因此，坦白說，我們在世界各地有很多機會。我的意思是，我認為目前北美已經足夠了，但我們肯定會開始審視全球範圍內還有哪些更大的機會。

So we're optimistic. I mean, the brake pad business is an opportunity that's just beginning, and we're excited about that business. We think we have the premier product in the marketplace and we're just beginning. I mean, I don't think you've seen the effect of that yet, and it's coming. It's not this year's story is a pretty conventional same as story and next year's story just picks up more momentum.

所以我們很樂觀。我的意思是，煞車片業務是一個剛開始的機會，我們對這項業務感到興奮。我們認為我們擁有市場上首屈一指的產品，而這只是個開始。我的意思是，我認為你還沒有看到它的效果，但它即將到來。今年的故事不是一個很傳統的故事，而明年的故事只是會更有動力。

Got it. Well, congrats on the results, guys. I'll hop back in the queue.

知道了。好吧，夥伴們，恭喜你們取得這樣的成績。我會重新回到隊列中。

Thank you so much.

太感謝了。

Thank you.

謝謝。

(Operator Instructions).

（操作員指令）。

There are no further questions at this time. I would like to turn the call back over to Selwyn Joffe for closing remarks.

目前沒有其他問題。我想將電話轉回給塞爾溫·喬菲 (Selwyn Joffe) 做最後發言。

Great. Well, I appreciate everybody listening today. In summary, I can just repeat, we're bullish about our outlook for fiscal '26 and forward. We remain laser-focused on further efficiencies and fully benefiting from a not easily duplicated global platform to meet demand and grow market share for our nondiscretionary products emphasize nondiscretionary as well as from our diagnostic testing capabilities.

偉大的。好吧，我感謝大家今天的聆聽。總而言之，我只想重申一遍，我們對 26 財年及以後的前景持樂觀態度。我們始終專注於進一步提高效率，並充分利用難以複製的全球平台來滿足需求，擴大我們非自由裁量產品的市場份額，強調非自由裁量產品以及我們的診斷測試能力。

We continue to leverage our expertise in solid customer and supplier partnerships. Our liquidity is strong. Our leverage is very low, and we have the resources, capacity and capability to further enhance shareholder value.

我們將繼續利用我們的專業知識與客戶和供應商建立穩固的合作關係。我們的流動性很強。我們的槓桿率很低，我們擁有進一步提升股東價值的資源、產能和能力。

Let me reiterate our strategic focus, growing sales of our existing product lines, continuous operational efficiency improvements to further enhance margins, mitigating tariffs and increasing cash conversion by neutralizing working capital, and we are positive on all those fronts.

讓我重申我們的策略重點：增加現有產品線的銷售額，持續提高營運效率以進一步提高利潤率，降低關稅並透過中和營運資本來增加現金轉換，我們對所有這些方面都持積極態度。

In closing, we appreciate the contributions of all of our team members who are continuously focused on providing the highest level of service. We are all committed to being the industry leader for parts and solutions that move our world today and tomorrow.

最後，我們感謝所有團隊成員的貢獻，他們始終致力於提供最高水準的服務。我們致力於成為當今和未來推動世界發展的零件和解決方案的行業領導者。

We also appreciate the continued support of our shareholders, and we thank everyone again for joining us on the call. We look forward to speaking with you when we host our fiscal 2026 second quarter call in November and at various investor conferences and meetings in the interim. Thank you.

我們也感謝股東的持續支持，並再次感謝大家參加我們的電話會議。我們期待在 11 月召開 2026 財年第二季電話會議以及在此期間舉行的各種投資者會議和會議上與您交談。謝謝。

This concludes today's conference call. You may disconnect.

今天的電話會議到此結束。您可以斷開連線。