Highlights

  • Bapcor Ltd (ASX:BAP) traded at AUD 0.48, up 13.10% during the morning session on 12 August 2026, while remaining down 83.33% over the past year.
  • The company confirmed it remains in line with previously released FY26 underlying EBITDA guidance.
  • FY26 underlying EBITDA guidance remains at $144 million–$150 million post AASB16 and $62 million–$68 million pre AASB16.
  • Bapcor secured revised lending covenant arrangements for FY27 testing periods.
  • Revised covenants provide additional financial flexibility as the company continues its Business reset and operational turnaround.

Bapcor Ltd (ASX:BAP) was trading at AUD 0.48, up 13.10% during the morning session on 12 August 2026, while the company’s shares remain down 83.33% over the past year. The automotive aftermarket company has provided an update on its FY26 outlook, confirming its previously released Earnings guidance while also announcing revised lending covenant arrangements to provide additional financial flexibility.

Bapcor said it remains in line with its FY26 guidance, with underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) expectations unchanged. The company also confirmed that lenders have approved revised covenant arrangements for FY27 financial year testing periods.

FY26 EBITDA Guidance Remains Unchanged

Bapcor has confirmed that it continues to expect FY26 underlying EBITDA to be within its previously announced guidance range.

The company expects underlying FY26 EBITDA of $144 million to $150 million after accounting for AASB16 Lease accounting requirements.

On a pre-AASB16 basis, Bapcor expects underlying FY26 EBITDA of $62 million to $68 million.

The confirmation maintains the company’s previous earnings expectations as it continues to implement its business reset and operational turnaround initiatives.

Revised Lending Terms Provide Additional Financial Flexibility

Alongside its earnings update, Bapcor announced that lenders have approved revised covenant arrangements covering FY27 financial year testing periods.

Under the revised arrangements, the Net Leverage Ratio will increase to 3.5 times adjusted EBITDA at 31 December 2026. This will then revert to 3.0 times adjusted EBITDA for testing at 30 June 2027 and subsequent periods.

The Fixed Charge Cover Ratio has also been revised to 1.30 times adjusted EBITDA for testing at 31 December 2026 and 30 June 2027. This will revert to 1.75 times adjusted EBITDA for testing at 31 December 2027 and thereafter.

The updated arrangements provide additional covenant headroom while Bapcor continues working through its turnaround program.

Management Highlights Turnaround Focus

Bapcor Chief Financial Officer Kim Kerr acknowledged lender support following approval of the revised covenant arrangements.

“The additional headroom provides Bapcor with further financial flexibility as it continues to execute its business reset and operational turnaround,” Kerr said.

The company did not provide changes to its previously stated FY26 EBITDA expectations as part of the update.

Focus Remains on Business Reset and Operational Improvement

Bapcor’s latest announcements centre on maintaining its FY26 earnings outlook and strengthening financial flexibility during its operational reset.

The company’s guidance confirmation provides an update on its expected EBITDA performance, while the revised covenant arrangements provide additional flexibility across upcoming FY27 testing periods.

The latest update follows a period where the company has focused on improving operational performance and managing its financial position through the turnaround process.

Investor Takeaway

Bapcor’s latest update confirms that FY26 underlying EBITDA guidance remains unchanged, with expectations of $144 million–$150 million post AASB16 and $62 million–$68 million pre AASB16. The company has also secured revised lending covenant arrangements, increasing flexibility during FY27 testing periods.

Investors may continue watching the company’s ability to deliver against its FY26 earnings outlook, progress its operational turnaround and manage leverage levels under the updated financial arrangements.