Bapcor Ltd FY26 earnings: turnaround gains, big impairment loss

The Bapcor Ltd (ASX: BAP) share price is in focus today after the company reported a statutory net loss of $431.6 million in FY26, driven mainly by non-cash impairment charges, while underlying EBITDA exceeded the top end of May’s guidance.

What did Bapcor report?

• Underlying revenue of $1,924.1 million, down 1.8% from FY25
• Statutory net loss after tax of $431.6 million, impacted by $442.4 million in post-tax significant items
• Underlying EBITDA of $152.5 million, exceeding guidance
• Underlying NPAT of $10.8 million, down 85.0% year-on-year
• Net bank debt reduced to $135.0 million from $364.8 million in FY25
• No final dividend declared to prioritise cash during the turnaround

What else do investors need to know?

Bapcor’s FY26 was a year of transition and turnaround, marked by the appointment of a new CEO, Chair, and strengthened leadership team. The second half saw improved operating momentum, with working capital initiatives delivering $68.5 million in cash flow and cash conversion rising sharply to 109.4%.

The company completed a $200 million equity raising in February 2026, helping to materially strengthen its balance sheet and reduce net debt. Bapcor also implemented cost and efficiency improvements, focusing on enhancing price competitiveness, stock availability, and customer engagement across its business units.

What did Bapcor management say?

Chief Executive Officer and Managing Director, Chris Wilesmith, said:

Since joining Bapcor in January, our priority has been restoring the fundamentals of the business. The actions implemented during the second half improved performance across the Group. Sales momentum improved across the Group through the final 5 months of the year, Networks returned to growth, Retail delivering positive like-for-like sales growth, and our working capital initiatives are delivering real value.

What’s next for Bapcor?

Looking ahead, Bapcor plans to build on its recent improvements with an ongoing turnaround program and a broader strategic review to clarify long-term priorities. The company is also considering divesting smaller, non-core assets to sharpen its focus on critical, high-return businesses.

In FY27, management expects modest revenue growth with trading momentum tipped to improve further. Early trading for the first six weeks shows sales slightly ahead of last year, although macroeconomic and geopolitical uncertainties persist. Profits are likely to be more heavily weighted to the second half of the year.

Bapcor share price snapshot

Over the past 12 months, the Bapcor share price has significantly underperformed the S&P/ASX 200 Index (ASX: XJO) with an 85% decline as operational challenges weighed on investor sentiment.

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The post Bapcor Ltd FY26 earnings: turnaround gains, big impairment loss appeared first on The Motley Fool Australia.

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