Bapcor Limited (ASX:BAP)

Bapcor Limited’s FY26 Results Presentation outlines a difficult but improving year in which group revenue fell 1.8% to $1.924 billion, underlying EBITDA declined 34.6% to $152.5 million but still exceeded May 2026 guidance, and underlying NPAT fell to $10.8 million, while the statutory loss of $431.6 million was driven by $442.4 million of significant items, almost entirely non-cash impairments; management said turnaround actions launched in the second half of FY26 improved sales momentum in the final five months, supported by pricing resets, better stock availability, cost and working capital initiatives, and stronger frontline capability, although results were pressured by weaker consumer and business demand, higher freight and fuel costs linked to Middle East disruption, and a weaker NZD; segment performance showed Trade revenue down 1.0% and EBITDA down 30.7%, Networks revenue down 0.6% but EBITDA up 7.3%, Retail revenue down 2.3% and EBITDA down 9.6% with 2H like-for-like sales returning to growth, and New Zealand revenue down 7.3% in AUD terms with EBITDA down 30.5%; cash flow and balance sheet metrics improved materially with operating cash flow of $166.9 million, cash conversion of 109.4%, free cash flow of $55.2 million, net debt reduced to $135.0 million after working capital improvements and a $200 million equity raising, and covenant headroom maintained, while Bapcor also commenced a broader strategy reset in June 2026 to simplify the portfolio, define future target markets and position the business for sustainable earnings growth; for FY27, first six weeks of sales were slightly ahead of the prior comparative period, Trade parts and Networks were growing, Retail, New Zealand and Trade equipment remained challenging, and the company expects modest revenue growth with underlying NPAT materially weighted to the second half as turnaround benefits are partly reinvested in technology and people.