Key Highlights

  • RPM Automotive Group's revenue from continuing activities fell 10 per cent to $102.07 million in FY26, and it reported a loss after tax of $12.02 million.
  • A goodwill impairment of $4.02 million contributed to the loss, while net operating cash flow rose to $7.18 million.
  • Management has paused acquisitions and adopted a four-stage framework of stabilise, restructure, rebuild and grow.

RPM Automotive Group (ASX:RPM) swung from profit to loss in the year to 30 June 2026, according to its Appendix 4E, and management says FY27 will be a transition year. The figures show a clear trade-off: the group generated positive operating cash flow even as earnings fell, and it is now putting cash, inventory and costs ahead of acquisitions. The accounts were still being audited, so the numbers could change. All figures are in Australian dollars.

The business

RPM describes itself as a leading Australian automotive group with four divisions: Repairs and Roadside (retail), Motorsport (retail), Performance and Accessories (retail and wholesale) and Wheels and Tyres (wholesale). The 4E states that no businesses were acquired in FY26 and that acquisitions are now paused.

The FY26 result

Revenue from continuing activities fell 10 per cent to $102.07 million from $113.73 million. Wheels and Tyres, the weakest division, declined to $35.92 million from $45.88 million. Gross profit was $34.57 million against $40.39 million, and EBITDA fell 82 per cent to $2.31 million from $12.99 million.

A goodwill impairment of $4.02 million, compared with none the year before, contributed to an operating loss of $7.22 million. Loss before tax from continuing operations was $9.44 million and loss after tax was $12.02 million, or a basic loss of 4.42 cents per share, against a $4.64 million profit from continuing operations in FY25. No dividend was declared for either year. The FY25 comparatives included a $2.98 million loss from discontinued operations, so that year's total comprehensive income of $1.66 million is not directly comparable with this year's $12.02 million comprehensive loss. The 4E figures do not set out the reasons for the divisional decline.

Cash, debt and the balance sheet

Net operating cash flow rose to $7.18 million from $6.48 million, and closing cash was $7.19 million against $6.76 million, after a net financing outflow of $2.39 million. Capital expenditure fell to $1.53 million from $2.89 million, and inventory was reduced to $21.52 million from $26.16 million.

Borrowings totalled $31.89 million at 30 June 2026, down from $33.79 million, of which $17.13 million was classified as current. Lease liabilities were $10.91 million. Net assets fell to $45.90 million from $57.75 million, and net tangible assets per share declined to 3.61 cents from 6.59 cents. Goodwill of $33.83 million remains on the balance sheet and is tested for impairment against future earnings. Facility terms and covenant details were not set out in the 4E.

Strategy and governance

Management said it reviewed the business in the second half of FY26 and adopted a four-stage framework: stabilise, restructure, rebuild and grow. The actions include closing underperforming operations, pausing acquisitions and concentrating on cash, working capital, inventory and costs, with the tyre division singled out for margin and inventory improvement. Executive director Clive Finkelstein resigned on 7 August 2026.

There were 272.4 million ordinary shares on issue. A total of 96.4 million listed options expired during the year, leaving none on issue and removing that source of potential dilution.

The Bottomline

Automotive aftermarket businesses depend on consumer spending, product costs and inventory discipline. For RPM, the main identifiable issues are execution risk on the restructuring, the carrying value of goodwill and the pending audit. The audited annual report is the next confirmed document, as the 4E said the audit report would be included in it; no release date has been given.