Key Highlights

  • Statutory net loss was $431.6 million, including $442.4 million in post-tax significant items, primarily non-cash impairments.
  • Underlying EBITDA of $152.5 million exceeded the top end of the May 2026 guidance range, though it was down 34.6% on restated FY25.
  • Net bank Debt was reduced by $229.8 million to $135.0 million, supported by a February 2026 Equity raising and improved cash generation.
  • Working capital initiatives delivered $68.5 million of Cash Flow in the second half, lifting cash conversion to 109.4% from 86.5% in FY25.

Bapcor Limited (ASX:BAP) share price was trading at $0.54, up 19.12% or $0.087 on the day, as at 27 August 2026, 10:54am AEST, following the release of its FY26 results. The company reported a statutory net loss of $431.6 million for the year ended 30 June 2026, compared with restated statutory NPAT of $19.1 million in FY25. The result included $442.4 million of post-tax significant items, primarily related to non-cash Impairment charges, which the company said reflected impairment testing assumptions placing greater weight on recent trading performance and current market conditions over the benefits expected from future turnaround initiatives.

Underlying Revenue for the year was $1,924.1 million, down 1.8% on restated FY25. Underlying EBITDA was $152.5 million, down 34.6% on FY25's $233.1 million, though this figure exceeded the top end of the guidance range issued in May 2026. Underlying NPAT was $10.8 million, down 85.0% on FY25's $71.7 million. The company noted that FY25 comparative financial information had been restated for prior period adjustments identified during FY26, which reduced opening Retained Earnings at 1 July 2025 by $18.2 million post-tax.

Working Capital Initiatives Support Cash Generation

Working capital initiatives implemented in the second half of FY26 reduced inventory and overdue debtors, delivering $68.5 million of cash flow, within the company's guidance range of $60-75 million, and improving cash conversion to 109.4% from 86.5% in FY25. Net debt at 30 June 2026 was $135.0 million, down $229.8 million from FY25's $364.8 million, supported by a $200 million equity raising completed during the second half, with proceeds used to reduce debt.

The company's Net Leverage Ratio was 1.72 times adjusted EBITDA, within its debt covenant of 3.5 times, and Bapcor remained compliant with all debt covenants throughout the year. During FY26, the company repaid the maturing $100 million MetLife Facility and reduced available debt facilities by a further $135 million to better align with Business needs. Bapcor also secured covenant amendments that the company said provide additional financial flexibility to support the operational turnaround. No final Dividend was declared, with the company stating that cash is being prioritised to support the turnaround.

Operational Momentum Improves Through Second Half

CEO and Managing Director Chris Wilesmith said that since joining the company in January, the priority had been restoring the fundamentals of the business, with actions implemented during the second half improving performance across the Group. He said sales momentum improved across the Group through the final five months of the year, with the Networks division returning to growth and Retail delivering positive like-for-like sales growth.

Mr Wilesmith said the actions implemented in the second half delivered measurable improvement across the Group, including improved price competitiveness, increased stock availability, strengthened customer and trade partner engagement, enhanced operational execution and tightened Working Capital discipline. He noted this occurred despite a more challenging external environment following the equity raising, including geopolitical disruption associated with the Middle East conflict, higher fuel prices, softer economic conditions and higher interest rates.

Strategy Reset and FY27 Outlook

Alongside its turnaround program, Bapcor is progressing a broader strategy reset aimed at clarifying the Group's long-term strategic direction, including where the company will play, how it will win, and where it can generate the highest returns. A portfolio review is underway, with an initial focus on simplifying the Group through the potential divestment of smaller non-core assets, intended to enable a more focused allocation of capital and management resources.

For the first six weeks of FY27, sales were slightly ahead of the prior comparative period, with Trade parts and Networks continuing to deliver growth, while Retail, New Zealand and Trade equipment businesses remained challenging. The company said Underlying NPAT is expected to be materially weighted to the second half of FY27, with modest revenue growth expected as Middle East conflict-related pressures moderate the benefits of turnaround initiatives, and benefits largely reinvested in technology and people. Capital Expenditure and Depreciation and Amortisation are expected to be in line with FY26 levels.

Conclusion

Bapcor's FY26 results reflect a year dominated by Leadership renewal, Balance Sheet Recapitalisation and substantial non-cash impairment charges that drove the company to a large statutory loss, even as underlying EBITDA exceeded guidance and second-half operational momentum improved across most divisions. With net debt materially reduced, working capital discipline delivering tangible cash flow, and a broader strategy reset underway including a review of non-core assets, the company's FY27 performance will likely hinge on whether the operational improvements seen in the second half of FY26 can be sustained against a backdrop of continuing external cost pressures.