Bapcor Reports $104.8M 1H26 Loss, Revenue Down 2.3%, NPAT $5.5M
Bapcor Limited reported a statutory loss of $104.8 million for the first half of FY26, alongside an underlying profit in line with guidance. The company announced a $200 million equity raising to strengthen its balance sheet and fund a strategic turnaround.
- Statutory loss of $104.8 million includes $110.3 million in significant items
- Underlying NPAT of $5.5 million aligns with December 2025 guidance
- Group revenue declined 2.3% to $973 million amid competitive and cost pressures
- New leadership team appointed with deep automotive and retail experience
- Fully underwritten $200 million equity raise to reduce leverage from 3.39x to ~1.2x-1.5x by mid-2026
Challenging First Half Results
Bapcor Limited, a leading provider of aftermarket vehicle parts and services across Australia and New Zealand, has reported a statutory loss of $104.8 million for the first half of fiscal 2026. This loss includes significant items amounting to $110.3 million post-tax, primarily driven by impairments and restructuring costs. Despite this, the company posted an underlying net profit after tax (NPAT) of $5.5 million, consistent with prior guidance.
Group revenue declined by 2.3% to $973 million, reflecting a tough operating environment characterised by heightened competition, cost inflation, and operational disruptions related to recent consolidation activities. The Trade segment, which accounts for 39% of revenue, was notably impacted by competitive pressures and cost increases, while the Networks, Retail, and New Zealand segments faced challenges from market disruptions and macroeconomic headwinds.
Strategic Turnaround and Leadership Renewal
In response to these challenges, Bapcor has embarked on a comprehensive turnaround strategy under a refreshed leadership team. Chris Wilesmith, appointed CEO and Managing Director, brings over 20 years of executive experience in the automotive sector. Alongside him, Craig Magill and Dean Austin have taken on executive roles in Trade and Retail respectively, each with decades of industry expertise.
The company is focused on simplifying operations, improving customer experience, and enhancing profitability through initiatives such as network optimisation, supply chain consolidation, digital transformation, and store refurbishments. Notable operational milestones include the opening of new supersites in New Zealand, consolidation of distribution centres, and the relaunch of the Autobarn brand.
Financial Position and Equity Raising
Bapcor’s balance sheet showed net debt of $387.3 million as at 31 December 2025, with a net leverage ratio of 3.39 times EBITDA, above the company’s covenant threshold. To strengthen its financial position and support the turnaround, Bapcor has announced a fully underwritten $200 million equity raising. This capital injection is expected to reduce leverage to approximately 1.2 to 1.5 times by mid-2026, providing greater flexibility to execute strategic initiatives.
Cash conversion stood at 93.4%, down from 108.5% in the prior corresponding period, reflecting the impact of lower earnings and working capital movements. The company has also paused its interim dividend as part of its focus on capital efficiency.
Outlook and Market Momentum
Looking ahead, Bapcor expects underlying EBITDA for FY26 to be in the range of $150 million to $160 million (post AASB16). Positive sales momentum is emerging in the Networks, Retail, and New Zealand segments, supported by promotional activity and operational improvements. However, the Trade segment continues to face headwinds, with management implementing targeted measures to restore competitiveness and market share.
The company’s renewed focus on customer service, pricing, inventory management, and digital capabilities aims to create a sustainable platform for growth. Investors will be watching closely to see how effectively Bapcor can translate these initiatives into improved financial performance in the second half of the year.
Bottom Line?
Bapcor’s $200 million equity raise marks a pivotal step in its turnaround journey, but execution risks remain as it seeks to regain growth and profitability.
Questions in the middle?
- How quickly will Bapcor’s new leadership translate operational initiatives into sustained earnings growth?
- What impact will the equity raising have on shareholder dilution and market sentiment?
- Can the company effectively navigate ongoing competitive pressures and cost inflation in the Trade segment?
