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 significant items totaling AUD 110.3 million; revenue was AUD 973 million, down 2.3%–3.9% year-over-year.

• Underlying net profit after tax was AUD 5.5 million, an 87.2% decline versus 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 changes include a new CEO, refreshed board, and experienced executives to drive turnaround initiatives.

• Interim dividend was paused or not declared to support capital management and business stabilization.

Financial highlights

• Group revenue declined 2.3%–3.9% year-over-year to AUD 973 million.

• Statutory NPAT loss of AUD 104.8 million, including AUD 110.3 million in significant items, mainly a goodwill impairment in New Zealand.

• Underlying NPAT was AUD 5.5 million, down 87.2% from the prior year.

• Underlying EBITDA was AUD 76.9 million, down 40.4%; statutory EBITDA was AUD 65.9 million, down 46.9%.

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

Outlook and guidance

• Full-year underlying EBITDA expected at AUD 150–160 million post-AASB 16, with pro forma net leverage ratio targeted at 1.2–1.5x by June 2026 and 1.7x by December 2025.

• 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 expected over the next six months, with momentum building into FY 2027.