Bapcor (BAP) H1 2026 earnings summary

Executive summary

• Statutory net loss after tax of AUD 104.8 million for H1 FY26, mainly due to a goodwill impairment in New Zealand and AUD 110.3 million in significant items, with group revenue of AUD 973 million, down 2.3% year-over-year.

• Underlying NPAT was AUD 5.5 million, an 87.2% decrease from the prior period, reflecting competitive pressures, higher costs, and internal execution issues.

• Significant investments were made in IT and supply chain centralization to improve operational efficiency.

• Leadership and board changes were implemented to drive turnaround and restore momentum.

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

Financial highlights

• Group revenue declined 2.3% year-over-year to AUD 973 million; underlying gross margin fell 154bps to 44.9%.

• Statutory NPAT loss of AUD 104.8 million, including AUD 110.3 million in significant items (mainly NZ goodwill impairment).

• Underlying EBITDA was AUD 76.9 million, down 40.4%; underlying NPAT was AUD 5.5 million, down 87.2%.

• Net debt increased to AUD 387.3 million, with a net leverage ratio of 3.39x.

• Cash conversion at 93.4%, with operating cash flow dropping to AUD 71.8 million.

Outlook and guidance

• FY26 underlying EBITDA expected at AUD 150–160 million (post-AASB 16), with net leverage ratio targeted at 1.2–1.5x by June 2026 after equity raising and cash flow improvements.

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

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

• Stabilization and momentum-building expected over the next six months, with recovery initiatives underway.