MPAA

• Acquisitions and Strategic Expansion • Recently completed the acquisition of Centric Brake Brands, which is expected to be relaunched by the end of fiscal 2027. The brand has core strengths of high consumer satisfaction, best-in-class catalog accuracy, and the popular original brake pad formulation, with peak annual gross sales of ~$400 million, representing meaningful long-term growth opportunity. • The acquisition aligns with the company's multi-year strategy of expanding its position in brake-related product categories, creating two core non-discretionary mega-categories (alongside rotating electrical).

• Industry Tailwinds • U.S. vehicle average age has risen to 13 years (up from 12.6 years in 2024), and the total number of vehicles on the road increased to 289 million from 286 million year-over-year, creating growing replacement part demand. • The U.S. light-duty automotive aftermarket is projected to grow 5.2% in 2026 and exceed $500 billion by 2029, supported by ongoing new vehicle affordability constraints (average new transaction price topped $50,000 in September 2025), which lead consumers to hold and repair existing vehicles longer.

• Operational Updates • The relocation of heavy-duty rotating electrical operations from Canada to Mexico, initiated in late fiscal 2026 to improve operating efficiency, is near completion. • The company is seeing growing demand for its aftermarket parts in Mexico, and is well-positioned to support U.S. customer expansion into Latin and South America. • The JVT-1 benchtop diagnostic tester maintains industry leading positioning, with a growing installed base and expanding international and new application opportunities. • The company is exploring strategic alternatives for its non-core EV emulator business, while continuing to secure new prestigious OE customer commitments for the product line.

• Financial Performance Highlights • First quarter 2027 reported gross margin was 16.2%, down from 18% year-over-year; excluding 2.4% in non-cash expenses, 1.6% in one-time items, and 2% (~$3.5 million) in unfavorable foreign exchange impact from Mexican peso strength, adjusted gross margin was 20.2%. • Net operating cash used was $11.3 million in the quarter, driven by inventory ramp-up for new business. Net bank debt totaled $99.7 million as of June 30, 2026, with a net debt to adjusted EBITDA ratio of 1.26. Total liquidity including available credit was ~$112.4 million, and the company extended its revolver credit facility maturity to August 2031. • The company repurchased 129,523 shares for $1.9 million in the quarter, with $20.1 million remaining under the current share repurchase authorization.

• Management reaffirmed full fiscal 2027 (ending March 31, 2027) guidance, maintaining prior targets with no upward or downward revision. • Net sales are expected to grow 7.5% to 10.2% year-over-year, totaling between $780 million and $800 million, after excluding non-recurring items including prior tariff pass-throughs and non-recurring core revenue. The ramp-up of new business commitments in the second half of the fiscal year has been slightly delayed by customer liquidation of inventory from a prior supplier. • An additional $100 million in annualized net sales from new commitments by the end of fiscal 2027 is not included in the base guidance due to timing uncertainty, bringing total expected annualized net sales to over $900 million by fiscal 2027 end. • Operating income is projected between $86 million and $91 million, representing 12.3% to 18.8% year-over-year growth, after reflecting enacted August 2026 tariffs and excluding non-cash and one-time expenses. • Depreciation and amortization is expected to be ~$9 million, with full-year EBITDA projected between $95 million and $100 million.

The transcript does not provide separate absolute financial results or revenue contribution percentages for the company's individual product segments (rotating electrical, brake-related, heavy-duty, diagnostic, EV emulator) for the fiscal 2027 first quarter. Aggregate net sales for the first quarter ended June 30, 2026 was $168 million. At its peak, the acquired Centric Brake Brands business generated approximately $400 million in annualized gross sales, and brake-related product sales have grown to become the company's second mega-category alongside the 50+ year-old flagship rotating electrical category.

• Forward-looking statements are inherently uncertain, and actual results may differ from projections due to risks and uncertainties that are partially outside the company's control, including the risk that anticipated growth and customer opportunities are not achieved. • Reported first quarter results were negatively impacted by order timing, unfavorable foreign exchange movements, and one-time/non-cash items, and gross margin improvement depends on successful execution of cost reduction, operational relocation, and sales growth initiatives. • Additional detailed discussion of ongoing business risks is available in the company's SEC filings.

There were no questions submitted by conference call participants during the Q&A segment.