RPM Automotive Group Limited (ASX:RPM) describes itself as a leading player in the Australian automotive aftermarket sector. On 27 August 2026 it released its results for the financial year ended 30 June 2026, reporting Revenue of $102.1 million, a statutory net loss after tax of $12.0 million and the start of a turnaround program.

FY26 financial results

Revenue was $102.1 million, down 10% from $113.7 million, which the company attributes to a broader downturn in the tyre sector, increased competition and ongoing pressure on pricing and margins. Gross Margin was 34.3%, down 170 basis points from 36.0%, which the company says equates to approximately $1.7 million of gross profit. EBITDA before Goodwill impairment, which it calls EBITDA+, was $2.3 million, compared with $13.0 million, after $5.2 million of one-off items relating mainly to portfolio rationalisation, underperforming operations and strategic review activities.

The statutory net loss after tax was $12.0 million, after non-cash depreciation, Amortisation and Impairment of $9.5 million (FY25: $4.6 million), including a $4.0 million non-cash goodwill impairment identified in the review of Business performance and asset carrying values. The company says the one-off items are not expected to repeat in FY27.

Cash, Debt and working capital

Operating cash flow was $7.2 million and cash at bank was $7.2 million at year end. Borrowings were $31.9 million, compared with $33.8 million, and net debt was $24.7 million, compared with $27.0 million. Inventories fell from $26.2 million to $21.5 million and receivables from $17.0 million to $12.3 million, which the company attributes to a structured sell-down of aged stock and a finance-led focus on collections.

Portfolio review and actions taken

A review of profitability across every business and site was initiated, resulting in closure of identified underperforming operations. Acquisition activity has been paused, and the finance function has been strengthened and restructured to improve oversight, cash generation and Working Capital management. Expenditure approval processes have been tightened, with closer oversight of discretionary spending. The company described its framework as stabilise, restructure, rebuild and grow.

FY27 priorities

The company listed six priorities: strengthening cash generation and reducing debt; protecting and expanding gross margin through pricing discipline, purchasing and product mix; reducing operating cost; simplifying the supplier and Brand portfolio; growing profitable revenue by retaining key customers and increasing share of wallet; and improving productivity. It described FY27 as expected to be a transition year and said it will report progress against these objectives during FY27.

Risks and sector context

Revenue, gross margin and EBITDA all declined in FY26, and the company reported a statutory loss that included a goodwill impairment. Net debt of $24.7 million remains significant relative to EBITDA+ of $2.3 million. The turnaround initiatives are described as taking time to execute, and the company does not give quantified FY27 guidance. Gross margin movements flow directly to Earnings at the group's scale, as the company notes. Competition and pricing pressure in the tyre sector are cited as continuing influences.

For sector context, the company points to a broader downturn in the tyre sector and increased competition as factors affecting FY26 trading.

What to watch next

Items to watch include progress against the six FY27 priorities, gross margin recovery towards historical levels, further reductions in borrowings, the pace of inventory sell-down, the effect of closed operations on revenue, and any resumption of acquisition activity after the pause.