RPM Automotive Group Limited (ASX:RPM), a company operating across the Australian automotive aftermarket sector, released its financial results for the year ended 30 June 2026 on 27 August 2026. Revenue for the year was $102.1 million, down 10% on the prior corresponding period. EBITDA+ (before Goodwill impairment) was $2.3 million, compared with $13.0 million in the prior year. A statutory net loss after tax of $12.0 million was recorded, after $9.5 million in non-cash depreciation, amortisation, and Impairment charges. The company initiated a turnaround program during FY26 to address performance and improve the quality of the business.

About RPM Automotive Group

RPM Automotive Group Limited (ASX:RPM) describes itself as a leading player in the Australian automotive aftermarket sector. The company provides a range of products and services to the automotive aftermarket, operating across multiple Business units and sites. RPM Automotive holds a portfolio of businesses in this sector and has undergone a strategic review during FY26 to identify underperforming operations and develop a plan for sustainable long-term value creation.

FY26 Results — Released 27 August 2026

RPM Automotive's FY26 revenue of $102.1 million was 10% below the prior corresponding period. EBITDA+ was $2.3 million, incorporating $5.2 million of one-off items, compared with $13.0 million in the prior year. Gross Margin declined to 34.3% from 36.0%, a reduction of 170 basis points, attributed to pricing environment, purchasing challenges, and product mix. Operating Cash Flow was $7.2 million, with cash at bank of $7.2 million at year end.

The statutory net loss after tax was $12.0 million, after non-cash depreciation, amortisation, and impairment charges of $9.5 million (FY25: $4.6 million). A non-cash goodwill impairment of $4.0 million was recognised following the portfolio review. Net Debt at 30 June 2026 was $24.7 million (borrowings of $31.9 million less cash of $7.2 million), compared with $27.0 million in the prior year. Inventories reduced from $26.2 million to $21.5 million through a structured sell-down of aged stock, and receivables declined from $17.0 million to $12.3 million.

During FY26, the company initiated a portfolio review of profitability across every business and site, resulting in the closure of identified underperforming operations. A turnaround program was established with four strategic phases: stabilise, restructure, rebuild, grow. Acquisition activity was paused. The turnaround agenda is expected to continue into FY27, with management citing margin protection and expansion, profitable revenue growth, structural cost reduction, improved productivity, and supplier and Brand portfolio simplification as key priorities. The non-cash impairment items are not expected to repeat in FY27.

Industry Context

The Australian automotive aftermarket sector has faced a challenging operating environment in recent years, with consumer spending pressure, Supply chain normalisation post-COVID, and pricing competition affecting margins. The aftermarket sector — which encompasses parts, accessories, servicing, and automotive products — is generally considered to have resilient underlying Demand as Australia's vehicle fleet ages. However, the shift in vehicle mix toward EVs and newer vehicles with different service and parts requirements creates a medium-term structural transition that aftermarket operators need to address in their business models.

Risks and Uncertainties

RPM Automotive's FY26 results reflect a business in transition, with declining revenue, compressed margins, a statutory loss, and net debt of $24.7 million. The turnaround program may take time to deliver results, and there is no guarantee that the initiatives outlined will fully restore the company's financial performance. Gross margin recovery depends on pricing discipline, purchasing improvements, and product mix, which can be challenging to execute in a competitive environment. The company's borrowings remain elevated relative to operating cash flow, and continued reduction of net debt is a stated priority.