• Operational reviews and cost savings initiatives underway
• 1Q26 trading performance below expectation, with challenges in Trade and Retail segments
• 1H26 statutory NPAT expected between $3-7M, underlying NPAT between $14-18M

Bapcor today provides an update on business activities and trading performance for 1Q26 and provides guidance for the first half of FY26 and for the FY26 full year. Management continues the execution of the strategy announced in April 2025, with operational reviews and key actions being undertaken, including pricing reviews, ranging reviews, utilisation of promotions, implementation of a Retail-specific demand and merchandise planning team, training for sales team members, and optimising the store network. Additionally, investment in brand and product marketing activities in 1H26 of $3M are being made, and investment in technology has increased by ~$6M. Cost savings initiatives have also been launched, including optimisation of supply chain structures, simplification of support office structures, re-prioritising people and technology spend, and changes to the New Zealand distribution footprint. These initiatives are expected to generate ~$20M (pre-tax) in savings to 2H26 earnings, with implementation costs of ~$4M (pre-tax) expected to be incurred in 1H26. An in-depth review of the tools and equipment business within the Trade segment has identified unsatisfactory operational practices, resulting in non-recurring margin impacts and stocktake variances of ~$12M (pre-tax) in 1H26 earnings. 1Q26 trading performance was below expectation, with the Trade segment revenue declining, the Retail segment continuing to be impacted by the challenging retail environment, and the New Zealand segment facing deteriorating macro-economic conditions. Bapcor expects Statutory Net Profit after Tax (NPAT) for 1H26 to be in the range of $3-7M, excluding any potential impairments associated with the New Zealand segment, and Underlying NPAT for 1H26, before one-off / non-recurring items, to be in the range of $14-18M. For FY26, Statutory NPAT is expected to be in the range of $40-50M, excluding the potential 1H26 impairment associated with the New Zealand segment, and Underlying NPAT for FY26, before the anticipated 1H26 one-off / non-recurring items, is expected to be in the range of $51-61M.

For FY26, Statutory NPAT is expected to be in the range of $40-50M, excluding the potential 1H26 impairment associated with the New Zealand segment, and Underlying NPAT for FY26, before the anticipated 1H26 one-off / non-recurring items, is expected to be in the range of $51-61M. Capital expenditure for the full year is expected to be in the range of $32-38M.

NPAT in 2H26 is expected to significantly improve from 1H26 due to operational improvement with a focus on driving sales growth, the benefits of the pricing realignment measures underway, realisation of the benefits from the previously mentioned savings initiatives, and the non-recurrence of the $16M pre-tax 1H26 one-off items.