Turnaround and trading update

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Stock Bapcor Ltd (BAP.ASX)
Release Time 14 May 2026, 8:39 a.m.
Price Sensitive Yes
 Bapcor Provides Turnaround and Trading Update
Key Points
  • Improved sales momentum across all business segments in Feb-Apr 2026 vs prior period
  • Revised FY26 earnings guidance due to softer trading conditions and higher costs
  • Implementing initiatives to enhance profitability, optimize costs, and return to growth
Full Summary

Bapcor Limited (ASX: BAP) has provided an update on the positive momentum from turnaround activities implemented since the release of the 1H26 results, as well as an update on trading performance for the second half of FY26, which has been negatively impacted by the Middle East conflict. Bapcor has delivered improved sales momentum, with sales growth in February 2026 to April 2026 across all business segments versus the prior comparative period (pcp). This is a turnaround from the declines evident across all business segments in the period from July 2025 to January 2026 versus the pcp. However, trading conditions have materially deteriorated since late March 2026 with the commencement of the Middle East conflict and the increase in interest rates. As a result, Bapcor has reduced its FY26 earnings guidance, now expecting to deliver underlying FY26 EBITDA of $144M - $150M (post AASB16) and underlying FY26 EBITDA of $62M - $68M (pre AASB16). The revised earnings outlook reflects softer trading conditions, higher fuel, freight and supplier costs, and the depreciation of the NZD against the AUD. Bapcor is implementing initiatives to strengthen competitiveness and improve performance, including enhancing profitability, optimizing costs, improving capital efficiency, and returning to growth. These initiatives are already demonstrating results, with all segments showing positive sales momentum in the period February to April 2026 versus pcp.

Guidance

Bapcor now expects to deliver underlying FY26 EBITDA of $144M - $150M (post AASB16) and underlying FY26 EBITDA of $62M - $68M (pre AASB16).

Outlook

Bapcor is implementing initiatives to strengthen competitiveness and improve performance, including enhancing profitability, optimizing costs, improving capital efficiency, and returning to growth.