Bapcor (BAP) H2 2025 earnings summary

Executive summary

• FY 2025 was marked by a strategic reset focused on simplification, cost reduction, and network optimization, with significant restructuring and digital investments.

• Group revenue declined 1.5% year-over-year to $1,944 million, with pro forma NPAT down 8.4% to $80.4 million and statutory NPAT at $28.1 million, impacted by $52.3 million 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.

• Cost savings initiatives delivered $27.5 million, with a gross exit rate of $40 million into FY 2026, and a return to positive free cash flow.

• 70 sites were closed or relocated, 21 new branches or stores were opened, and 23 warehouses consolidated to support future growth.

Financial highlights

• Group revenue: $1,944 million, down 1.5% year-over-year; pro forma NPAT: $80.4 million, down 8.4%; statutory NPAT: $28.1 million, including $52.3 million in significant items.

• Pro-forma EBITDA: $246.7 million, down 4.1% year-over-year; EBITDA margin: 12.7%.

• Gross margin: $904 million, down 1.6% year-over-year; gross margin rate: 46.5%.

• Operating cash flow increased to $201.7 million, with cash conversion rate at 81.8% and free cash flow of $20.9 million, up $31 million year-over-year.

• 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.

• Strategic reset underway, focusing on six imperatives to return to sustainable growth, with board renewal and operational improvements planned.

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