Bapcor (BAP) H1 2026 earnings summary

Executive summary

• Statutory net loss after tax of $104.8M for 1H26, driven by $110.3M in significant items, mainly a goodwill impairment in New Zealand, with group revenue of $973M, down 2.3% year-over-year.

• Underlying NPAT was $5.5M, an 87.2% decline versus the prior period, reflecting competitive pressures, challenging trading conditions, and internal execution issues.

• Significant investments were made in IT and supply chain centralization, with new leadership and board appointments to drive turnaround and operational efficiency.

• Interim dividend was paused to support capital management and business stabilization.

• An equity raising of $200M was announced post-period to strengthen the balance sheet and improve financial flexibility.

Financial highlights

• Group revenue declined 2.3% year-over-year to $973M; statutory EBITDA fell 46.9% to $65.9M, and underlying EBITDA dropped 40.4% to $76.9M.

• Underlying NPAT was $5.5M, down 87.2% from the prior year; statutory EPS fell to (30.88) cps.

• Gross margin was $437.3M, down 5.5% year-over-year; underlying gross margin fell 154bps to 44.9%.

• Net debt increased to $387.3M, with a net leverage ratio of 3.39x adjusted EBITDA.

• Cash conversion was 93.4%, down from 108.5% in 1H25; operating cash flow dropped to $41.8M.

Outlook and guidance

• FY26 underlying EBITDA expected at $150M–$160M (post-AASB16), with pro forma net leverage ratio targeted at 1.2–1.5x by June 2026 after equity raising.

• Focus on reducing inventory and receivables to release $60M–$75M in cash flow.

• No interim dividend for FY26; focus on turnaround, cost optimization, and capital efficiency.

• Stabilization expected over the next six months, with momentum building into FY27.