Highlights

  • Bapcor (ASX:BAP) is scheduled to release FY26 results on 27 August 2026.
  • The company secured revised Debt covenant arrangements with lenders to provide additional financial flexibility through FY27.
  • FY26 underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) guidance remains at A$144–150 million post-AASB 16.
  • Operational updates showed sales improvements across Trade, Networks, Retail and New Zealand segments during February to April 2026.

Bapcor (ASX:BAP) is approaching its FY26 results announcement with investor focus centred on operational recovery, financial flexibility and progress of its turnaround initiatives. The automotive aftermarket parts company has implemented cost and Working Capital measures while managing debt obligations and revised lending arrangements.

What happened

Bapcor’s most recent substantive updates were released on 12 August 2026, including revised financial flexibility arrangements with lenders and confirmation of FY26 guidance.

The lender agreement includes revised covenant settings for FY27 testing periods. The net Leverage Ratio covenant was increased to 3.5 times adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at the 31 December 2026 test, before returning to 3.0 times from 30 June 2027.

The fixed charge cover ratio was adjusted to 1.30 times for the December 2026 and June 2027 tests, before reverting to 1.75 times from December 2027.

Bapcor also confirmed it remains aligned with previously issued FY26 guidance of underlying EBITDA of A$144–150 million post-AASB 16, equivalent to A$62–68 million pre-AASB 16.

The company is scheduled to release FY26 results on 27 August 2026, with Chief Executive Officer and Managing Director Chris Wilesmith and Chief Financial Officer Kim Kerr providing an investor briefing.

The numbers investors need to know

Bapcor’s May 2026 trading update highlighted improving sales trends across key Business segments. Between February and April 2026, Trade sales increased 0.7% compared with a 2.4% decline from July to January.

Networks sales increased 3.8% compared with a previous decline of 2.8%, while Retail like-for-like sales increased 1.6% compared with a 1.2% decline. New Zealand sales in local currency increased 0.7% compared with a 3.8% decline during the earlier period.

The company reported unaudited net debt of approximately A$168 million at the end of April 2026, supported by working capital initiatives including debtor reductions and inventory optimisation.

Turnaround initiatives have focused on discount management, cost reductions, inventory rationalisation, customer retention programmes and targeted pricing activities across more than 10,000 Burson products.

Bapcor completed a rights issue in March 2026 at A$0.60 per share, with directors participating. The company’s Book Value per share was reported at A$1.048, while Earnings Per Share were A$-0.251.

Turnaround outlook and key considerations

Bapcor’s near-term focus remains on FY26 results, debt management and continued execution of turnaround initiatives. The company has maintained its EBITDA guidance range while receiving additional flexibility through revised lending covenants.

Key areas to monitor include FY26 earnings delivery, any Impairment charges, audited net debt levels, leverage metrics under revised covenant arrangements and progress across operational improvement programmes.

Bull case

Bapcor has reported improving sales trends across its major operating segments, with Trade, Networks, Retail and New Zealand businesses all recording positive growth rates during the February to April 2026 period.

The company has reaffirmed FY26 EBITDA guidance and secured revised covenant arrangements that provide additional financial flexibility through FY27. Operational initiatives across pricing, inventory management and cost reduction remain central to the turnaround plan.

Bapcor continues operating within the automotive aftermarket sector, supported by Demand for vehicle servicing and replacement parts.

Bear case and risks

Bapcor continues to manage a range of financial and operational challenges, including debt levels, potential impairment charges and the sustainability of recent sales improvements.

The company’s pre-AASB 16 EBITDA guidance of A$62–68 million remains materially lower than the post-AASB 16 measure, highlighting differences between accounting treatments and underlying cash obligations.

Covenant flexibility is temporary, with previous leverage and fixed charge coverage requirements scheduled to return from future testing periods. Additional risks include discretionary automotive spending conditions, execution of the turnaround strategy and maintaining operational improvements.

What comes next

The key upcoming milestone is Bapcor’s FY26 results announcement on 27 August 2026. Investors will focus on EBITDA performance against the A$144–150 million guidance range, any impairment outcomes, audited net debt, leverage metrics and FY27 outlook.

Further milestones include future covenant testing periods, including the December 2026 review, and continued progress on operational recovery initiatives.

Conclusion

Bapcor (ASX:BAP) enters its FY26 results period with a focus on operational recovery, financial management and execution of its turnaround strategy. The company has reaffirmed EBITDA guidance, reported improving segment sales trends and secured revised lender arrangements.

The FY26 results will provide further visibility on earnings delivery, debt position, impairment outcomes and the sustainability of operational improvements. These factors will remain central to assessing Bapcor’s recovery pathway.