Bapcor (BAP) investor relations material

Executive summary

• FY26 marked a reset and turnaround year with new leadership, a renewed board, and operational improvements that drove momentum in the second half.

• Statutory loss of $431.6M was mainly due to $442.4M in post-tax, non-cash impairments of goodwill and intangibles.

• Underlying EBITDA of $152.5M exceeded the top end of guidance, supported by turnaround initiatives.

• Net debt reduced to $135.0M, strengthening balance sheet flexibility through a $200M equity raising.

• No dividend declared to prioritize cash for the turnaround.

Financial highlights

• Revenue declined 1.8% year-over-year to $1,924.1M.

• Underlying NPAT was $10.8M, down 85% year-over-year.

• Gross margin was 45.3%, down from 46.1% in FY25.

• Cost of doing business rose to 37.4% of sales, reflecting investments in IT, supply chain, and employees.

• Cash conversion improved to 109.4% from 86.5% in FY25; free cash flow increased to $55.2M.

Outlook and guidance

• Modest revenue growth expected in FY27, with underlying NPAT materially weighted to the second half.

• Margin enhancement and cost reduction initiatives to continue, with ongoing investment in technology and people.

• Capital expenditure, depreciation, and amortization to remain in line with FY26.

• Portfolio review and strategic simplification underway to focus on core assets.

• Sales for the first six weeks of FY27 are slightly ahead of the prior year.