Bapcor (BAP) H2 2025 earnings summary

Executive summary

• FY 2025 was marked by a strategic reset focused on simplification, cost reduction, and network optimization, including the exit or relocation of 70 sites, consolidation of 23 warehouses, and opening of 21 new branches or stores.

• Group revenue declined 1.5% to $1,943.5M, with pro forma NPAT down 8.4% to $80.4M and statutory NPAT at $28.1M, impacted by $52.3M in post-tax significant items.

• Trade segment revenue grew 1.3% and EBITDA rose 5.4%, while retail and New Zealand segments saw revenue declines due to challenging macroeconomic conditions.

• Achieved $27.5M in cost savings, returned to positive free cash flow, and refinanced $170M of debt.

• Statutory NPAT rose 117% year-over-year, driven by lower significant items.

Financial highlights

• Group revenue: $1,943.5M, down 1.5% year-over-year; statutory revenue: $1,975.8M, down 3.0%.

• Pro forma NPAT: $80.4M, down 8.4% year-over-year; statutory NPAT: $28.1M, including $52.3M in significant items.

• Pro forma EBITDA: $246.7M, down 4.1%; pro forma EBIT: $152.7M, down 7.4%.

• Operating cash flow increased to $201.7M, with cash conversion rate at 81.8%.

• Final dividend declared at $0.055 per share, full-year payout ratio of 57% on pro-forma NPAT.

Outlook and guidance

• No formal or informal guidance provided for FY 2026 due to ongoing transformation and uncertainty.

• FY 2026 profit expected to be skewed towards the second half, driven by cost savings and sales growth from new sites.

• Focus remains on organic sales growth, operational efficiency, and disciplined capital allocation.

• Board renewal and operational improvements to drive further opportunities in FY26 and beyond.