Bapcor (BAP) H2 2025 earnings summary

Executive summary

• FY25 was marked by a strategic reset focused on simplification, cost reduction, and network optimization, with significant board and management changes including a new Executive Chair & CEO and several director resignations.

• Statutory NPAT was $28.1M, a turnaround from a $165.4M loss in FY24, including $52.3M in post-tax significant items; pro-forma NPAT declined 8.4% to $80.4M.

• Trade segment revenue grew 1.3% and EBITDA rose 5.4%, while Specialist Wholesale EBITDA increased 5.2% despite revenue declines; Retail and New Zealand segments saw revenue and EBITDA declines due to challenging conditions.

• Cost savings initiatives delivered $27.5M, with a gross exit rate of $40M into FY26, and operational simplification caused some disruption.

• 70 sites were closed or relocated, 21 new branches or stores were opened, and non-core MTQ Engine Systems was divested.

Financial highlights

• Statutory revenue: $1,975.8M (down 3.0% YoY); pro-forma revenue: $1,943.5M (down 1.5% YoY); pro-forma EBITDA: $246.7M (down 4.1% YoY); gross margin: $904M (down 1.6% YoY).

• Statutory NPAT: $28.1M (up 117.0% from FY24 loss); pro-forma NPAT: $80.4M (down 8.4% YoY); EPS: 8.3c statutory, 23.7c pro-forma.

• Operating cash flow increased to $201.7M, cash conversion rate at 81.8%, and free cash flow of $20.9M, up $31M YoY.

• Final dividend declared at 5.5c per share, fully franked; full-year payout ratio of 57% on pro-forma NPAT.

• Net debt increased 8.2% to $364.8M; leverage ratio at 2.13x EBITDA, within covenant limits; undrawn committed facilities over $340M.

Outlook and guidance

• No formal or informal guidance for FY26 due to ongoing transformation and uncertainty; profit expected to be skewed towards the second half as cost savings and sales growth from new sites materialize.

• Strategic reset underway, focusing on simplification, operational efficiency, and disciplined capital allocation.

• Board renewal and leadership changes expected to support strategic execution and future growth.

• FY26 will see refinements to executive remuneration to better align incentives with strategic goals.