Why on earth is the Bapcor share price crashing 21% on Thursday?

The Bapcor Ltd (ASX: BAP) share price is getting hammered today.

Shares in the embattled S&P/ASX 300 Index (ASX: XKO) auto parts company closed yesterday trading for 51.5 cents. In earlier trade, shares just plunged to 40.5 cents each, down 21.4%. At time of writing, shares have recovered a touch, changing hands for 42.0 cents each, down 18.5%.

For some context, the ASX 300 is down 0.1% at this same time.

Unfortunately for longer-term shareholders, today’s sharp sell-off isn’t unique for the stock. Indeed, the Bapcor share price is now down a steep 92.2% since this time last year.

Here’s what’s got investors reaching for their sell button today.

Why is the Bapcor share price in free fall?

The ASX 300 auto parts company is taking a hit after releasing a trading update.

The company reported achieving positive sales momentum between February and April from the turnaround activities intended to restore growth.

However, the Bapcor share price is under heavy pressure, with management noting that the company’s trading performance for the second half of FY 2026 has been negatively impacted by the Middle East conflict.

Bapcor noted that trading conditions have “materially deteriorated” since late March. The headwinds have been fuelled by the Iran war as well as increasing interest rates.

Higher Aussie interest rates have led to a strong Australian dollar relative to the New Zealand dollar, which the company noted is negatively impacting the earnings of its New Zealand business segment.

As such, the ASX 300 stock downgraded its full year FY 2026 earnings guidance from what it provided on 26 February, two days prior to the outbreak of the Iran war.

Bapcor now expects to deliver FY 2026 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $144 million to $150 million (post AASB16). That’s down from prior guidance of $150 million to $160 million.

Pre AASB16 (which accounts for leases), Bapcor now expects full year underlying EBITDA of $62 million to $68 million, down from previous guidance of $74 million to $79 million.

What did management say?

Commenting on the trading update that’s crushing the Bapcor share price today, CEO and managing director Chris Wilesmith said:

We are pleased with the positive momentum of the turnaround, which has been delivered through decisive actions we’ve taken to improve pricing, stock availability and team engagement.

This is despite the challenging external environment which was not contemplated when we began this turnaround, and which has slowed the rate of improvement contemplated in our previous guidance. We will continue driving initiatives during the important trading months of May and June.

The post Why on earth is the Bapcor share price crashing 21% on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.