Bapcor (BAP) Trading update summary

Business and Trading Performance

• Sales momentum improved across all segments from February to April 2026, reversing previous declines seen from July 2025 to January 2026 versus the prior comparative period.

• Trade segment achieved market share growth in Parts in 2H26 compared to 1H26, with broad-based gains outpacing key competitors.

• Customer retention and engagement improved, with declining turnover rates and high-quality team members returning.

• Retail and network segments delivered like-for-like sales growth and positive momentum from January to April 2026.

• New Zealand segment saw a turnaround to positive sales growth in February to April 2026 after previous declines.

Financial Guidance and Margin Impacts

• FY26 underlying EBITDA guidance reduced to $144M–$150M (post AASB16) and $62M–$68M (pre AASB16), with a downgrade of approximately AUD 11 million attributed to slower sales, margin pressures, increased fuel, freight, and supplier costs, and FX impacts.

• Gross margin is weaker than anticipated due to price rollbacks and slower-than-expected offsetting actions in higher-margin categories.

• Leverage is expected to be higher than previously anticipated but remains within covenant limits; FCCR is forecasted to be compliant at 1.4x.

• Unaudited net debt at end of April 2026 was approximately $168 million.

• Potential for a non-cash impairment to be assessed at year-end.

Operational and Strategic Initiatives

• Targeted pricing adjustments and competitive rollbacks implemented to offset fuel price increases and drive positive customer response.

• Inventory management actions are underway, improving stock availability at branches and stores, with some benefits deferred into FY27 due to softer trading.

• Engagement and leadership programs have been reintroduced, supporting cultural and operational improvements.

• Cost optimization measures include reducing external recruitment spend and emergency orders.

• Capital efficiency actions focus on reducing overdue debtors and rationalizing product ranges.