Bapcor Limited Overview
Bapcor is the largest specialist automotive aftermarket parts, accessories, equipment and service group in Australia and New Zealand, operating a vertically integrated model that spans importing and wholesale aggregation (Networks), trade distribution to independent mechanics (Burson Auto Parts and related trade brands), consumer retail and franchised service (Autobarn, Autopro, Opposite Lock, Midas, ABS), and an integrated New Zealand trade and specialist wholesale business. With FY26 revenue of A$1.92 billion across roughly 900 locations, Bapcor's structural advantages are network density, inventory breadth, supply-chain scale and long-standing trade relationships in a market underpinned by an ageing, growing and increasingly complex car parc. However, the group is in the midst of a deep turnaround: it suffered serial earnings downgrades, a A$431.6M statutory loss in FY26 driven by impairments, prior-period restatements, a deeply discounted A$200M recapitalisation, and a near-complete renewal of board and executive leadership. The investment case now rests on execution of operational repair and a strategy reset due to conclude in FY27.
Company's own description
In its FY26 Directors' Report, Bapcor describes its principal activities as the sale and distribution of aftermarket vehicle parts, accessories, automotive equipment, service and solutions, positioning itself as one of the largest such suppliers in Australia and New Zealand, with roughly 900 locations and approximately 5,200 team members. Its FY26 investor materials summarise the group as a leading ANZ provider of aftermarket vehicle parts, accessories, equipment, service and solutions, serving five customer archetypes: generalist mechanics, specialist auto trade, truck and commercial mechanics, parts resellers, and DIYers/car enthusiasts/car carers (FY26 Results Presentation, slide 13).
Business model
Bapcor operates a multi-channel distribution model in which a central sourcing and aggregation function (historically the Wholesale business within Networks) imports and buys product from global and domestic suppliers, then distributes through:
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Trade distribution (B2B): Company-owned branches (Burson Auto Parts and others) deliver parts on short lead times (often multiple deliveries per day) to independent workshops, national service chains and fleet operators. Revenue is earned on product margin; the critical success factors are in-stock availability at the branch, delivery speed, price competitiveness and technical support.
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Specialist networks (B2B): Truck/commercial vehicle parts (Truckline, WANO), auto-electrical and batteries (JAS, Baxters, Federal Batteries) and specialist wholesale categories (bearings, braking, suspension, cooling) serving specialist trade and parts resellers.
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Retail and franchise (B2C and franchise): Company-owned Autobarn stores sell accessories, consumables and parts to consumers; Autopro, Opposite Lock and parts of Autobarn operate as franchises generating franchise fees and wholesale sales; Midas and ABS are predominantly franchised service-workshop brands.
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Equipment (B2B): Precision Automotive Equipment sells and services workshop equipment (vehicle hoists, diagnostic/scanning equipment), a more cyclical, capex-linked revenue stream.
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New Zealand: A replicated trade + wholesale + licensee model (BNT, Autolign, HCB, JAS Oceania NZ, Precision Equipment NZ, plus the Battery Town and Shock Shop licensee networks).
Revenue model mix
| Revenue type | Disclosure status | Analyst characterisation |
|---|---|---|
| Product sales (parts, accessories, consumables, equipment) | Not split | Est. dominant (>90%) — analyst judgement, not disclosed |
| Franchise fees / licence fees | Included in Retail revenue ("company store revenue and franchisee fees") | Small; not quantified |
| Equipment servicing | Within Trade (Tools & Equipment A$91.3M FY26 incl. sales) | Small |
| Subscription / licensing | — | — |
Bapcor is overwhelmingly a product-sales business. Service revenue arises from equipment servicing (Precision), company-operated workshops (limited), and franchise/licence fees (Retail franchise networks and NZ licensees). Bapcor does not disclose a product/service/franchise revenue split. Historically, management has stated that roughly 91% of revenue derives from non-discretionary categories (FY24 Results Presentation), which underpins resilience in Trade and Networks; discretionary exposure is concentrated in Retail (Autobarn accessories, 4WD/Opposite Lock).
Value chain position
Bapcor sits in the mid-to-downstream distribution layer of the aftermarket value chain: upstream are global component manufacturers (Bosch, Ryco/Amotiv brands, Asian contract manufacturers for private label), and downstream are independent workshops and end consumers. Its vertical integration (wholesale → trade → retail/franchise) is a stated differentiator, enabling capture of the wholesale margin across multiple channels and the use of private and white-label brands for margin uplift (FY26 investment proposition slide).
End-markets
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Light vehicle service and repair (independent workshops) — Australia's ~21–22 million registered vehicles (industry estimate; not company-sourced).
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Heavy/commercial vehicle maintenance (trucks, trailers).
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Auto-electrical and battery replacement (including marine through Battery Town Marine in NZ).
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Consumer DIY maintenance, car care and 4WD/touring accessories.
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Workshop capital equipment.
Independent characterisation
Bapcor is fundamentally a scale distributor whose economic engine — Burson Trade — was historically a high-return, high-margin franchise (Trade EBITDA margins of ~16–19% on the FY24–FY25 basis). Over FY22–FY26 the group lost operating discipline: acquisitive growth outpaced integration, systems proliferated, pricing became uncompetitive while store-level discounting became uncontrolled (Burson store-level discounting reached 16% at December 2025 before being cut to 8% by June 2026), stock availability collapsed (Burson branch in-stock fell to 84%, JAS to 53% and Autobarn to 74% in March 2026), and staff turnover reached ~42%. The FY26 reset therefore is less about strategy and more about restoring basic retail/distribution execution — pricing, availability and people.
Strategy
Stated strategy (FY26)
Bapcor's current framework has two layers:
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Turnaround program (commenced February 2026) organised around four pillars that also drive the executive scorecard: Enhance profitability; Optimise CODB; Strengthen capital efficiency; Return to growth.
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Strategy reset (commenced June 2026, to complete in FY27) — a comprehensive reset to align with evolving aftermarket trends: defining a new purpose and vision, identifying target markets, assessing car-parc evolution opportunities (EVs, hybrids, Chinese brands, ADAS), prioritising initiatives, and a portfolio review initially focused on divesting smaller non-core assets. After the reset, Bapcor intends to move to an annual strategic planning cycle.
The April 2025 strategy (under McKay) — with FY30 targets of >5% p.a. revenue growth and >10% p.a. EBITDA growth — has effectively been superseded; management has not reaffirmed those targets.
Initiative register (last 24 months)
| Initiative | Timing | Detail / targets | Status |
|---|---|---|---|
| Network/warehouse simplification | FY25 | 70 sites exited/relocated; 23 warehouses consolidated into state DCs | Completed FY25; caused service disruption (JAS, Wholesale) |
| FY25 cost savings | FY25 | Targeted A$20–30M; A$27.5M delivered | Completed |
| FY26 pre-tax savings | 2H26 | ~A$20M pre-tax savings flagged (Dec 2025) | Partially reinvested |
| Trade repricing (Phase 1) | 2H26 | Targeted repricing at Burson and Autobarn; discount override controls (16% → 8% store discounting) | Done; Phase 2 in FY27 |
| Stock availability program | 2H26–FY27 | In-stock Burson 84%→94%, JAS 53%→92%, Autobarn 74%→96% (Mar→Aug 2026); target ~98% | Ongoing |
| Working capital program | 2H26 | A$60–75M cash target; A$68.5M delivered; inventory -A$22.5M; overdue debtors -A$14.5M | Delivered; continues via open-to-buy |
| Supply chain efficiency | Q4 FY26 | Emergency replenishment orders cut from 15.4% to 12.2% of lines; annualised labour savings A$2.8M | Ongoing |
| In-house recruitment function | 2H26 | Reduce reliance on external recruiters | Implemented |
| People / retention | 2H26 | Turnover cut from 41.8% (Dec 25) to 35.5% (Jun 26); Manager Essentials training (~80 managers); Burson sales reps 56→64; Group Retention Program | Ongoing |
| Retail "Hyperdrive" | 2H26 | 100-day operational improvement program at Autobarn | Completed; range rebuild rolling out early FY27 |
| NPS program | Since Oct 2025 | >22,000 customer responses | Ongoing |
| NZ DC consolidation | FY26–1H27 | South Island DC opened; Auckland DCs consolidating | Completion 1H FY27 |
| Technology investment | FY26–FY27 | IT projects (BMW, HRIS, payroll simplification, finance improvement); AI/machine learning, automation | Benefits to be "largely reinvested in technology and people" in FY27 |
| Capital management framework | FY27 | To be formalised | Planned |
| Portfolio review | FY27 | Potential divestment of smaller non-core assets | Underway |
| Balance sheet recapitalisation | Feb–Mar 2026 | A$200M equity raise; MetLife repaid; facilities cut to A$585M | Completed |
Guidance and medium-term targets
FY27 outlook (27 Aug 2026): first six weeks' sales slightly ahead of pcp; modest revenue growth expected; underlying NPAT "materially weighted" to 2H27; Middle East conflict-related pressures to moderate turnaround benefits; capex and D&A in line with FY26 (~A$29M capex, ~A$101M D&A).
No quantitative EBITDA/NPAT guidance: was provided for FY27, and no medium-term financial targets are currently in force.
Dividends: suspended; cash prioritised for the turnaround.
Products & Services
Bapcor does not publish product-level pricing, launch dates or specifications. Pricing model for all trade brands is account-based trade pricing with rebates/discounts; retail brands use shelf pricing and promotions; franchise brands earn franchise fees. Entries below reflect company disclosures (FY26 Directors' Report, company descriptions) and are organised by segment.
Trade segment
| Brand / offering | Description | Target customer | Notes |
|---|---|---|---|
| Burson Auto Parts (flagship) | National trade parts distributor; routine service parts (filters, brake pads, oil, spark plugs) and breakdown parts (water pumps, starter motors, alternators); consumables | Independent and chain mechanic workshops | 247 Trade branches incl. Thailand; founded 1971; store-level discounting cut from 16% to 8% (Dec 25→Jun 26); in-stock 94% (Aug 2026) |
| Burson Auto Parts Thailand | Company-owned trade branches in Thailand | Thai workshops | 9 stores at 30 June 2026 (two opened in FY26) |
| Precision Automotive Equipment | Workshop equipment: vehicle hoists, diagnostic and scanning equipment, wheel/tyre equipment; installation and servicing | Workshops, dealers, fleets | Tools & Equipment revenue A$91.3M FY26 (-9.9%); restructuring underway; stocktake losses of A$3.0M identified across Precision branches (1H26) |
| Brookers and Brakeforce | Trade parts businesses (brake and general parts) | Trade workshops | Details n/d |
| Blacktown Auto Spares | Trade parts business (Western Sydney) | Trade workshops | Details n/d |
| Own/private-label brands | Private and white-label product ranges sold across Trade | Trade | Management targets increased own-brand penetration in FY27; specific brand names n/d |
Networks segment
| Brand / offering | Description | Target customer | Notes |
|---|---|---|---|
| Truckline (CVG) | Truck, trailer and heavy-vehicle parts network | Truck and commercial mechanics, fleets | New CVG leadership appointed late FY26; one branch opened (Orange), one closed (Victoria) |
| WANO (CVG) | Heavy commercial vehicle parts (WA-origin) | Truck/commercial | Part of CVG |
| JAS (formerly AEG) | Auto-electrical components, batteries; merger of JAS Oceania, Baxters and Federal Batteries | Auto electricians, workshops, resellers | Rebrand underway; in-stock improved from 53% (Mar 26) to 92% (Aug 26); Newcastle JAS/Baxters branches merged |
| Federal Batteries | Battery distribution (within JAS) | Trade/resellers | — |
| Baxters Auto Electrical | Auto-electrical distribution (within JAS) | Trade | Acquired 2016 |
| AAD | Specialist automotive aftermarket wholesale (Wholesale) | Parts resellers, trade | — |
| Bearing Wholesalers | Bearings and seals wholesale | Industrial/automotive trade | Acquired FY16 |
| Roadsafe Automotive Products | Steering, suspension and underbody product wholesale | Trade/resellers | Acquired 2016 |
| Premier Auto Trade | Wholesale parts | Resellers | — |
| Other wholesale brands (Diesel Distributors, Toperformance, Diesel Drive) | Diesel/fuel-injection and specialist product ranges (per third-party company descriptions) | Specialist trade | Current status within portfolio n/d |
Wholesale revenue rose 2.9% in FY26 (2H +6.8%) following the realignment of channel strategy and recovery from FY25 warehouse consolidation.
Retail segment
| Brand / offering | Description | Target customer | Notes |
|---|---|---|---|
| Autobarn (flagship) | Full-offer automotive accessories, parts, car care, 4WD; mostly company-owned flagship stores; online; Accelerate loyalty program | DIYers, enthusiasts, car carers | In-stock 96% (Aug 26) from 74% (Mar 26); range rebuild rolling out early FY27; store layout enhancements planned |
| Autopro | Franchised automotive parts and accessories stores (regional) | DIY and local trade | Predominantly franchised |
| Opposite Lock | 4WD and off-road accessories and fitment | 4WD/touring enthusiasts | Discretionary exposure |
| Midas | Franchised car service, brakes, tyres and mechanical repair | Consumers | Predominantly franchised |
| ABS (Auto Brake Service) | Franchised brake and service workshops | Consumers | Predominantly franchised |
| Accelerate (loyalty) | Autobarn loyalty program | Retail consumers | 2.1M members; 984k active (+5.8%) |
New Zealand segment
| Brand / offering | Description | Target customer | Notes |
|---|---|---|---|
| Brake & Transmission (BNT) | Primary NZ supplier of parts and accessories to workshops | NZ trade | Trade leadership strengthened; contact centre upgraded |
| Autolign | Undercar steering and suspension specialist | NZ trade | — |
| HCB | Battery wholesale | NZ trade/resellers | — |
| JAS Oceania NZ | Auto-electrical components | NZ auto electricians | — |
| Precision Equipment NZ | Workshop equipment | NZ workshops | — |
| Battery Town | NZ's largest automotive electrician network (licensee) | Consumers/fleets | 120 licensee stores combined with Shock Shop |
| Battery Town Marine | Marine electrical services (licensee) | Marine owners | — |
| The Shock Shop | Specialist steering and suspension licensee network | Consumers | Among the largest in NZ |
Financial Narrative
Income statement
Basis: Revenue is statutory (FY24 derived from disclosed +0.8% growth on FY23; FY25 restated). EBITDA, EBIT and NPAT are "pro-forma" for FY22–FY24 and "underlying" (restated) for FY25–FY26, all post-AASB16. FY25 underlying figures are the restated values disclosed in FY26 documents; FY25 as originally reported showed pro-forma NPAT of A$80.4M and statutory NPAT of A$28.1M.
Sources: FY23 results release (FY22–FY23); FY24 results release; FY26 Directors' Report and Remuneration Report five-year table (statutory NPAT, EPS, DPS); FY26 Results Presentation. FY25 margins use underlying revenue of A$1,959.2M.
Supplementary items (partial data):
Revenue CAGR FY22–FY26: +1.1% p.a. (derived: 1,841.9 → 1,924.1 over four years) — negative in real terms. Revenue peaked at ~A$2.04B in FY24.
Commentary. The five-year profile is one of top-line stagnation and severe operating deleverage. EBITDA fell 48% from the FY23 peak of A$298.6M to A$152.5M in FY26, while revenue declined only ~5% from its FY24 high — evidence that the problem is margin and cost, not volume collapse. Two structural drivers stand out. First, gross margin erosion: management attributed Trade's FY26 margin compression to a combination of historically poor pricing (uncompetitive list prices offset by uncontrolled store-level discounting) and the deliberate transition to sharper pricing. Second, CODB inflation: CODB rose 7.6% in FY26 to 37.4% of revenue (+325bps), reflecting IT investment and SaaS costs, supply chain projects, higher employee costs (including a retention bonus accrual and wage compliance review costs) and occupancy. Inflections: FY24 marked the first major statutory loss (Retail impairments); FY25 a brief statutory recovery; FY26 the trough, with 2H26 showing early stabilisation (gross margin % improved in 2H, 2H Retail EBITDA +14.2%, Networks 2H revenue +1.3%). Statutory results have repeatedly been well below pro-forma/underlying results, with cumulative post-tax significant items of ~A$773M over FY22–FY26 (derived), which materially undermines the credibility of "underlying" earnings as a measure of shareholder value creation.
Balance sheet
Notes: FY24 values are the restated 1 July 2024 opening balance sheet in the FY26 Financial Report; FY24 equity is derived (total assets less identified liabilities) and should be treated as indicative. FY25 balances follow the FY26 Results Presentation (restated); the audited statement of financial position shows FY25 total current assets of A$815.3M versus A$822.0M in the presentation — a classification discrepancy (the presentation aggregates income tax receivable and other items differently). The MetLife facility shown as current in some interim periods was repaid in June 2026. Net bank debt excludes lease liabilities and adjusts for derivatives; statutory net debt including leases was A$366.8M (FY26) and A$586.6M (FY25). Net debt for FY22 and FY23: FY23 A$251.7M (1.12x leverage); FY22 n/d (A$203M at 31 Dec 2021).
Commentary. The FY26 balance sheet was transformed by two forces: (1) a A$445.3M pre-tax segment impairment that cut intangibles by ~65% to A$221.2M and reduced right-of-use assets, and (2) the A$200M equity raise (A$192.3M net) applied to debt, cutting net bank debt by A$229.8M to A$135.0M. Net tangible assets per share were 50.9 cents (FY25 restated: 56.1 cents, on fewer shares). Inventory remains the largest asset and the key capital-efficiency lever: average inventory/revenue was 27.8% (FY25: 27.4%), and 2H26 actions reduced inventory by A$22.5M. Overdue debtors were cut by A$14.5M to A$25.6M.
Cash flow
FY22–FY24 cash flow data on a comparable basis n/d in sources reviewed. Working capital initiatives delivered A$68.5M of cash in 2H26 (guidance A$60–75M); 2H26 cash conversion was 125.8% versus 93.4% in 1H26. FY26 capex was well below the October 2025 guidance of A$32–38M. A tax receipt of A$21.0M (vs A$12.2M paid in FY25) flattered FY26 cash flow and is non-recurring in nature.
Ratios
Commentary. Returns have collapsed below any plausible cost of capital: derived underlying ROIC of ~3.8% in FY26 compares with the FY24–FY26 LTI ROIC hurdle threshold of 12.5% (outcome tested at 7.8%, nil vesting) and FY26 LTI hurdles of 10.2–12.2% for FY28. The post-raise balance sheet is no longer the binding constraint (leverage 1.72x vs covenant <3.5x; FCCR 1.62x vs >1.40x), but the covenant EBITDA base is thin: pre-AASB16 underlying adjusted EBITDA was only A$78.5M in FY26 (FY25: A$157.6M), meaning modest earnings slippage moves leverage materially. A ~127-day cash conversion cycle (derived) is long for a distributor and illustrates the inventory-heavy model; management targets in-stock rates of 98% while simultaneously cutting inventory via SKU rationalisation and open-to-buy discipline.
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View Subscription PlansFinancial Detail
Segment Revenue
| Segment | Contents (FY26 Directors' Report) | FY26 network |
|---|---|---|
Trade | Burson Auto Parts, Precision Automotive Equipment, Brookers and Brakeforce, Blacktown Auto Spares (Australia) and Burson Thailand. Distributes parts/consumables to trade workshops, workshop equipment (hoists, scanning) incl. servicing, and accessories/maintenance products to DIY owners | 247 branches (incl. 9 in Thailand) |
Networks (renamed from Specialist Wholesale) | Specialist Networks: Commercial Vehicle Group (Truckline, WANO) and JAS (merger of JAS Oceania, Baxters and Federal Batteries; formerly Auto Electrical Group). Wholesale: AAD, Bearing Wholesalers, Roadsafe, Premier Auto Trade. Acts as aggregator and importer for the group | 111 branches |
Retail | Autobarn (mostly company-owned flagship stores), Autopro, Opposite Lock, Midas and ABS (predominantly franchised workshops) | 119 company stores + 213 franchise = 332 |
New Zealand | Brake & Transmission (BNT), Autolign, HCB (batteries), JAS Oceania NZ, Precision Equipment NZ; licensee networks Battery Town, Battery Town Marine and Shock Shop | 72 company stores + 120 licensee = 192 |
Unallocated / Head Office | Eliminations of store-to-store transfers; unallocated support office and supply chain costs; share of associates' profit (incl. 25% of Singapore-listed Tye Soon) | — |
Segment Revenue (AUD Mn)
| Segment Revenue (AUD Mn) | FY25 | FY26 |
|---|---|---|
Trade revenue | 784.7 | 776.9 |
Networks revenue | 624.6 | 620.9 |
Retail revenue | 403.0 | 393.8 |
New Zealand revenue | 170.5 | 158.1 |
Eliminations and Group revenue | -23.6 | -25.6 |
Total revenue | 1,959.2 | 1,924.1 |
Segment EBITDA (AUD Mn)
| Segment EBITDA (AUD Mn) | FY25 | FY26 |
|---|---|---|
Trade EBITDA | 151.7 | 105.2 |
Networks EBITDA | 63.1 | 67.7 |
Retail EBITDA | 42.8 | 38.7 |
New Zealand EBITDA | 27.9 | 19.4 |
Eliminations and Group EBITDA | -52.4 | -78.5 |
Total EBITDA | 233.1 | 152.5 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Segment metric | FY25 | FY26 |
|---|---|---|
Trade EBITDA margin (%) | 19.3 | 13.5 |
Networks EBITDA margin (%) | 10.1 | 10.9 |
Retail EBITDA margin (%) | 10.6 | 9.8 |
New Zealand EBITDA margin (%) | 16.4 | 12.3 |
Trade share of segment revenue (%) | 39.6 | 39.8 |
Networks share of segment revenue (%) | 31.5 | 31.8 |
Retail share of segment revenue (%) | 20.3 | 20.2 |
New Zealand share of segment revenue (%) | 8.6 | 8.1 |
Revenue by Segment
| Sub-segment (AUD Mn) | FY25 | FY26 |
|---|---|---|
Trade Parts revenue | 683.4 | 685.6 |
Trade Tools and Equipment revenue | 101.3 | 91.3 |
Networks Specialist Networks revenue | 464.1 | 455.9 |
Networks Wholesale revenue | 160.5 | 165.0 |
New Zealand revenue (NZD Mn) | 186.9 | 183.2 |
New Zealand EBITDA (NZD Mn) | 30.6 | 22.5 |
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View Subscription PlansRevenue by Segment (EBITDA FY23–Revenue FY24)
| Legacy segment (FY24 basis, AUD Mn) | Revenue FY23 | Revenue FY24 | EBITDA FY23 | EBITDA FY24 | EBITDA margin FY24 (%) |
|---|---|---|---|---|---|
Trade | 763.2 | 767.3 | 124.2 | 126.5 | 16.5 |
Specialist Wholesale | 766.0 | 792.2 | 102.9 | 90.1 | 11.4 |
Retail | — | — | 67.6 | 49.1 | 11.7 |
New Zealand | 176.1 | 176.1 | 29.9 | 32.1 | 18.2 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (AUD Mn, statutory) | 1,841.9 | 2,021.1 | 2,037.3 | 1,975.8 | 1,924.1 |
EBITDA (AUD Mn, pro-forma/underlying) | 291.5 | 298.6 | 268.4 | 233.1 | 152.5 |
EBIT (AUD Mn, pro-forma/underlying) | 205.8 | 204.3 | 174.9 | 138.9 | 51.4 |
NPAT (AUD Mn, pro-forma/underlying) | 131.6 | 125.3 | 94.8 | 71.7 | 10.8 |
NPAT (AUD Mn, statutory, restated where applicable) | 125.8 | 106.4 | -165.4 | 19.1 | -431.6 |
Basic EPS (cents, statutory, rights-adjusted) | 37.05 | 31.36 | -48.7 | 5.6 | -97.7 |
Dividends per share (cents) | 21.5 | 22.0 | 15.0 | 13.5 | 0 |
EBITDA margin (%, derived) | 15.8 | 14.8 | 13.2 | 11.9 | 7.9 |
EBIT margin (%, derived) | 11.2 | 10.1 | 8.6 | 7.1 | 2.7 |
Underlying net margin (%, derived) | 7.1 | 6.2 | 4.7 | 3.7 | 0.6 |
Margin Analysis (%) and Income Statement
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%, underlying) | — | — | — | 46.1 | 45.3 |
Gross profit (AUD Mn, underlying) | — | — | — | 902.2 | 872.1 |
CODB (% of revenue) | — | — | — | 34.2 | 37.4 |
Profit before tax (AUD Mn, underlying) | — | — | — | 101.6 | 15.8 |
Profit before tax (AUD Mn, statutory) | — | — | — | 27.8 | -448.3 |
Pro-forma/underlying EPS (cents) | 38.8 | 36.9 | 27.9 | 21.1 | 2.4 |
Diluted EPS (cents, statutory) | — | — | — | 5.58 | -97.74 |
Significant items post-tax (AUD Mn) | 5.9 | 18.9 | 253.1 | 52.6 | 442.4 |
D&A (AUD Mn, underlying) | — | — | — | 94.2 | 101.1 |
Finance costs (AUD Mn) | — | — | — | 37.3 | 35.6 |
Balance Sheet
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Total assets (AUD Mn) | 1,903.3 | 1,807.4 | 1,312.0 |
Cash and equivalents (AUD Mn) | 71.6 | 58.6 | 67.2 |
Inventories (AUD Mn) | 528.6 | 545.2 | 524.8 |
Intangible assets incl. goodwill (AUD Mn) | 618.6 | 635.9 | 221.2 |
Right-of-use assets (AUD Mn) | 247.5 | 182.9 | 155.4 |
Borrowings non-current (AUD Mn) | 405.6 | 418.5 | 202.8 |
Borrowings current (AUD Mn) | 0 | 0 | 0 |
Lease liabilities total (AUD Mn) | 288.6 | 223.7 | 229.0 |
Net bank debt (AUD Mn, covenant basis) | 337.1 | 364.8 | 135.0 |
Total equity (AUD Mn) | 859.6 | 837.7 | 565.2 |
Working capital (AUD Mn, derived) | 454.2 | 457.3 | 410.4 |
Cash Flow and Margin Analysis (%)
| Metric | FY2025 | FY2026 |
|---|---|---|
Operating cash flow before interest and tax (AUD Mn, company definition) | 201.7 | 166.9 |
Cash conversion (% of underlying EBITDA) | 86.5 | 109.4 |
Operating cash flow after interest, transaction costs and tax (AUD Mn) | 71.6 | 81.4 |
Capital expenditure (AUD Mn) | 61.6 | 29.2 |
Free cash flow (AUD Mn, company definition) | 20.9 | 55.2 |
Dividends paid (AUD Mn) | 45.8 | 18.7 |
Share buybacks (AUD Mn) | 0 | 0 |
Net proceeds of equity raising (AUD Mn) | 0 | 192.3 |
Lease principal payments (AUD Mn) | 62.1 | 70.9 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2025 | FY2026 |
|---|---|---|
ROE underlying (%, derived, avg equity) | 8.4 | 1.5 |
ROE statutory (%, derived) | 2.2 | -61.5 |
ROA underlying (%, derived, avg assets) | 3.9 | 0.7 |
ROIC (%, derived, underlying EBIT x 0.7 / avg net debt + equity) | 8.1 | 3.8 |
Current ratio (x) | 2.25 | 2.18 |
Borrowings / equity (x) | 0.50 | 0.36 |
Net leverage ratio (x, covenant, pre-AASB16) | 2.32 | 1.72 |
Interest cover (x, pre-AASB16 EBITDA / interest, company) | — | 6.01 |
Underlying EBIT / finance costs (x, derived) | 3.72 | 1.44 |
Asset turnover (x, derived) | 1.06 | 1.23 |
Inventory days (derived, inventory / COGS) | 188 | 182 |
Receivable days (derived) | 32 | 31 |
Payable days (derived) | 89 | 86 |
Cash conversion cycle (days, derived) | 131 | 127 |
Fixed Charge Cover Ratio (x, covenant) | — | 1.62 |
Region Revenue (AUD Mn)
| Region Revenue (AUD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
New Zealand segment revenue (AUD Mn) | 176.1 | 170.5 | 158.1 |
Australia and Thailand revenue (AUD Mn, derived as total less NZ) | 1,861.2 | 1,788.7 | 1,766.0 |
Total revenue (AUD Mn) | 2,037.3 | 1,959.2 | 1,924.1 |
Growth (%)
| Growth (%) | FY2025 | FY2026 |
|---|---|---|
New Zealand revenue growth A$ (%) | -3.2 | -7.3 |
New Zealand revenue growth NZD (%) | — | -2.0 |
Australia and Thailand revenue growth (%, derived) | -3.9 | -1.3 |
Share Price and Market Valuation
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Share price at 30 June (AUD) | 6.08 | 5.94 | 5.14 | 5.00 | 0.44 |
Market capitalisation at 30 June (AUD Mn) | 2,064 | 2,016 | 1,744 | 1,697 | 292.6 |
Dividends per share (cents) | 21.5 | 22.0 | 15.0 | 13.5 | 0 |
Reference Points by Period
| Period | Reference points | Approx. change |
|---|---|---|
1-year | ~A$3.17 (20 Oct 2025) → ~A$0.71 (latest observed) | ~-78% |
3-year | A$5.94 (30 Jun 2023) → ~A$0.71 | ~-88% |
~4-year (5-year data n/d) | A$6.08 (30 Jun 2022) → ~A$0.71 | ~-88% |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
Market capitalisation | ~A$478M | 672.75M shares × A$0.71 |
Enterprise value (ex-leases) | ~A$613M |
|
Enterprise value (incl. leases) | ~A$842M |
|
EV / EBITDA (pre-AASB16) | ~7.8x | A$78.5M covenant EBITDA |
EV / EBITDA (post-AASB16) | ~5.5x | A$152.5M underlying EBITDA |
EV / Sales | ~0.32x | A$1,924.1M revenue |
P/E (underlying) | ~44x | Underlying NPAT A$10.8M on full share count (1.6c/share) |
P/B | ~0.85x | Equity A$565.2M |
P/NTA | ~1.4x | NTA 50.9 cents/share |
Analyst Ratings & Targets
| Broker | Date | Rating | Target (AUD) | Note |
|---|---|---|---|---|
Macquarie | May 2026 | — | 0.44 (from 0.61) | Post-May guidance cut |
Morgans | May 2026 | — | 0.41 | "A long road back" |
Morgan Stanley | May 2026 | n/d (bearish) | 0.25 | — |
Canaccord Genuity | Dec 2025 | — | 2.00 (from 2.45) | Pre-raise; now stale |
UBS | Dec 2025 | Research restricted | — | Restricted (likely due to raise) |
Dividend (cents per share)
| Dividend (cents per share) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Interim dividend | 10.0 | 10.5 | 9.5 | 8.0 | 0 |
Final dividend | 11.5 | 11.5 | 5.5 | 5.5 | 0 |
Total dividend | 21.5 | 22.0 | 15.0 | 13.5 | 0 |
Facility Maturity Details
| Facility maturity | Facility amount | Drawn | Undrawn |
|---|---|---|---|
Jul-2028 | 180.0 | 35.0 | 145.0 |
Jul-2029 | 210.0 | 42.0 | 168.0 |
Jul-2030 | 102.5 | 93.0 | 9.5 |
Jul-2031 | 35.0 | 35.0 | 0 |
Total | 527.5 | 205.0 | 322.5 |
Capital Markets
| Item | Detail |
|---|---|
Structure | 1-for-1.36 accelerated non-renounceable entitlement offer (~A$150M) + pro-rata institutional placement (~A$50M) |
Price | A$0.60 — 65.0% discount to last close (A$1.715, 18 Feb 2026) and 48.4% discount to TERP (A$1.16) |
New shares | 333,340,578 (total on issue 672,753,078) |
Take-up | Institutional ~94%; retail ~48% (37.9M shortfall shares to sub-underwriters) |
Lead manager / underwriter | Macquarie Capital (sole) |
Use of proceeds | Debt reduction |
Analyst Conclusions
Management guidance (FY27)
Modest revenue growth; underlying NPAT materially 2H-weighted; Middle East-related cost pressures to moderate turnaround benefits; benefits largely reinvested in technology and people; capex and D&A in line with FY26. First six weeks of FY27 sales slightly ahead of pcp, with Trade parts and Networks growing and Retail, NZ and Trade equipment challenged. No numeric earnings guidance; no dividend expected near term.
Consensus expectations
Pre-raise sell-side forecasts are obsolete given the share count doubled and the earnings base reset.
Bull case
-
Operating leverage from basic repair: 2H26 already showed gross-margin improvement, Retail 2H EBITDA +14.2%, Networks back to growth and group like-for-like turning positive (+0.4% vs -2.7%). Restoring Trade EBITDA margin even halfway back to the FY25 19.3% (from 13.5%) on ~A$777M revenue would add ~A$22M of EBITDA (derived) — material relative to a ~A$478M market cap.
-
Balance sheet risk largely removed: net bank debt A$135M, >A$322M undrawn, no maturities until 2028 and covenant relief through FY27 give management time to execute without further dilution.
-
Asset value and optionality: at ~5.5x post-AASB16 EV/EBITDA and ~0.85x book, the market ascribes little value to the largest ANZ aftermarket network; portfolio sales or renewed private equity interest (Bain bid A$5.40 in 2024, albeit pre-dilution) could crystallise value; value investors (Spheria 15.67%) are accumulating.
Bear case
-
Credibility deficit: five consecutive years of 0% STI and nil LTI, multiple downgrades in FY26 alone, restated accounts and recurring "significant items" (~A$773M post-tax over FY22–FY26, derived) mean underlying earnings deserve a heavy discount.
-
Thin covenant earnings and macro exposure: pre-AASB16 EBITDA of A$78.5M is a narrow base; covenants tighten in 2027 (NLR <3.0x, FCCR >1.75x) just as fuel/freight inflation, higher rates and weak confidence persist.
-
Structural competitive erosion: Supercheap Auto (+3.9% sales, 12.8% PBT margin) and Bunnings press Retail; GPC/Repco has global scale in Trade; reinvestment of savings "in technology and people" may cap margin recovery in FY27.
Key catalysts and monitorables (next 12 months)
22 Oct 2026 AGM: remuneration report vote (strike risk), CEO equity approvals, any trading commentary.
Strategy reset outcome (FY27): purpose, target markets, capital allocation framework, and named divestments.
1H27 results (~Feb 2027): gross margin trend, Trade margin trajectory, CODB, 2H skew credibility, covenant metrics at 31 Dec 2026.
In-stock and turnover KPIs: progress toward ~98% in-stock and lower staff turnover.
NZ: Auckland DC consolidation (1H27) and further impairment risk.
Payroll review conclusion: and any regulator interaction.
Register changes: activist or strategic stakes; any change-of-control approach.
Concluding analyst verdict
Bapcor enters FY27 as a classic "broken franchise, fixed balance sheet" turnaround. The core asset — the Burson trade network, complemented by specialist networks, Autobarn and a NZ platform — is strategically valuable and structurally supported by an ageing, more complex car parc. But FY22–FY26 demonstrated how quickly distribution economics unravel when pricing, availability and people are neglected: underlying EBITDA halved from its FY23 peak, returns fell to roughly 4% on invested capital, and the group required a 65%-discounted A$200M recapitalisation after serial downgrades and an accounting restatement. The FY26 result marks a credible inflection in process rather than profit. The board has been almost entirely renewed and the chair/CEO roles separated; the new CEO's aftermarket pedigree is directly relevant; and early operating KPIs — discounting halved, in-stock rates restored to the low-to-mid 90s, working capital released, 2H like-for-like sales positive — are the right lead indicators. Liquidity is no longer the binding constraint. The key uncertainty is the slope of margin recovery. Management has explicitly guided that FY27 benefits will be reinvested, earnings will be heavily 2H-weighted, and external cost pressures persist — so FY27 is likely to be a "show-me" year with limited earnings evidence before February 2027. The equity is therefore a high-variance option on execution: at ~0.3x EV/Sales and below book value, modest margin normalisation would support substantial upside, while another stumble would leave the thin covenant EBITDA base exposed as covenants tighten in 2027. On balance, we view Bapcor as a speculative turnaround candidate.
Prepared from publicly available information as of 8 October 2026. Not investment advice.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Background / education | Other current roles |
|---|---|---|---|---|
Lachlan Edwards | Independent Chair | NED 1 Oct 2025; Chair 24 Nov 2025 | BEc, GDAFI, MAICD, CTP; former MD & Co-Head of Lazard Australia, MD at Goldman Sachs (APAC/Europe), MD and Board Director NM Rothschild & Sons (London); former Chair/President of the Turnaround Management Association Australia | Founder/MD Faraday Associates; Chair Matilda Nepean Private Hospital; Deputy Chair Bell Shakespeare |
Kathryn (Kate) Spargo | Deputy Chair; Chair of Nomination, Remuneration & ESG Committee | NED 1 Mar 2023; Deputy Chair 24 Nov 2025 | LLB (Hons), BA, FAICD; legal adviser, 20+ years as NED | NED Sonic Healthcare, CIMIC Group, Geelong Football Club |
Chris Wilesmith | CEO & Managing Director | 14 Jan 2026 | GAICD, MBA; 35+ years trade/retail/supply chain; ex-Group CEO & MD Jaycar Electronics; ex-CEO Mitre 10 (NZ); 13 years at Super Retail Group incl. 7+ years as MD Supercheap Auto; formerly NED of Penrite Oil, Australian Automotive Parts and Automotive Superstore | NED Tye Soon Ltd (SGX, Bapcor 25% associate); Independent Chair Carpet Court Australia |
Annette Carey | Independent NED | 1 Oct 2025 | LLB, BA; ex-CEO Linfox Logistics ANZ and Linfox Armaguard; ex-EGM International, Australia Post | NED Sigma Healthcare, Downer EDI, Kinetic |
Andrew Fraser | Independent NED | 1 Jul 2026 | LLB, BCom (Hon); ex-Head of Strategy & Investment NRL; ex-Chair Australian Retirement Trust | Chair Bank of Queensland; NED Brisbane Broncos; President Motorsport Australia; Chancellor Griffith University |
Jacqueline Korhonen | Independent NED | 1 Feb 2025 | BSc, B.Eng (Hon), FAICD; 23 years IBM; ex-CEO Infosys ANZ; ex-CEO SMS Management & Technology | NED Nippon Life Insurance ANZ, MyState, Nuix; member Board Technology Working Group |
Patria Mann | Independent NED; Chair of Audit & Risk Committee | 1 Oct 2025 | BEc, FAICD; Chartered Accountant; ex-KPMG partner; 20+ years as NED | NED Bega Cheese, GWA Group, GDI Property Group |
Executive Leadership Team
| Name | Title | Tenure | Prior roles |
|---|---|---|---|
Chris Wilesmith | CEO & MD | Since 14 Jan 2026 | See above |
Kim Kerr | CFO | Since 12 May 2025 | 25+ years in ASX100 companies; ex-CFO Orica; senior finance roles at Newcrest Mining (BBus (Acc), CA, GAICD) |
George Sakoufakis | General Counsel & Company Secretary | GC since 13 May 2019; Co Sec since 1 Feb 2021 | Foster's Group / Carlton & United Breweries; AB InBev |
Craig Magill | EGM (referenced as running Trade and Networks in Dec 2025) | 13 years at Bapcor; expanded role June 2025 | Current role after FY26 leadership changes not confirmed (new Trade EGM and new Networks leadership appointed during FY26; names n/d) |
Directors' Remuneration
| Executive | Cash salary | Super | Other long-term benefits | Termination | Other | Performance rights | Rights to shares | Total |
|---|---|---|---|---|---|---|---|---|
Chris Wilesmith (CEO, part-year) | 591,708 | 15,000 | 149,376 | — | 34,760 | 29,580 | 27,108 | 847,532 |
Kim Kerr (CFO) | 770,000 | 30,000 | 104,949 | — | — | 57,623 | 69,359 | 1,031,931 |
Angus McKay (former EC & CEO, part-year) | 948,185 | 17,500 | 79,510 | 1,358,011 | — | -434,761 | -180,786 | 1,787,660 |
Major Shareholders
| Holder | Stake | Date of notice | Comment |
|---|---|---|---|
Spheria Asset Management | 15.67% (105.4M shares) | 10 Jul 2026 (holding at 8 Jul) | Increased from 14.60%; largest disclosed holder |
State Street Corporation & subsidiaries |
| 19 Jun 2026 | Partly securities-lending positions |
Yarra Capital Management | Substantial (stake n/d) | Date n/d | Reported as becoming substantial holder |
Mitsubishi UFJ / First Sentier | Became 5.10% on 2 Jul 2026; ceased by 9 Jul 2026 | Jul 2026 | No longer substantial |
JPMorgan Chase & affiliates | Ceased 16 Jul 2026 | Jul 2026 | Stock-lending return |
Garry Johnson (Burson co-founder) | Described as a major shareholder in 2021 | Current stake n/d | — |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Ownership | Positioning vs Bapcor |
|---|---|---|---|
Trade | Repco (trade and retail) | Genuine Parts Company (NYSE: GPC), Asia Pacific division | Bapcor's principal national trade rival; global buying scale |
Trade | NAPA Auto Parts / Ashdown-Ingram | GPC Asia Pacific | Trade and heavy-duty distribution |
Trade | AutoOne, independent buying groups and regional distributors | Private | Fragmented local competition |
Trade/Equipment | Workshop equipment importers (various) | Private | Compete with Precision |
Retail | Supercheap Auto | Super Retail Group (ASX: SUL) | Market leader in auto accessories retail; FY26 sales A$1.59B |
Retail | Bunnings (automotive accessories range) | Wesfarmers (ASX: WES) | New entrant cited by commentators as eroding pricing power and footfall |
Retail | Repco retail stores | GPC | Hybrid trade/retail |
Retail / online | Amazon Australia, online parts retailers | Various | Price transparency, convenience |
Service (Midas/ABS) | Ultra Tune, mycar Tyre & Auto, Bridgestone Select, Bob Jane T-Marts, dealer service networks | Various | Franchised and corporate service chains; OEM dealer capture of newer vehicles |
Networks | Amotiv (ASX: AOV; brands Ryco, Narva, Projecta etc.) | Listed | Supplier and partial competitor in specialist categories |
Networks (truck) | Truck parts specialists and OEM dealer parts | Various | Compete with Truckline/WANO |
New Zealand | Repco NZ, Partmaster and NZ independents | GPC / private | Competitive pricing pressure cited in FY26 |
Peer Comparison FY2026
| Company | FY | Revenue (AUD Mn) | Revenue growth (%) | Margin metric |
|---|---|---|---|---|
Bapcor | FY26 (Jun) | 1,924.1 | -1.8 | Underlying EBITDA margin 7.9%; EBIT margin 2.7% |
Super Retail Group (group) | FY26 (Jun) | 4,199.8 | 3.2 | Segment EBIT margin 9.3% (A$388.8M) |
Supercheap Auto (SUL segment) | FY26 (Jun) | 1,591.6 | 3.9 | Segment PBT margin 12.8% (A$203.3M) |
Amotiv | FY26 (Jun) | 1,023.9 | 2.7 | Underlying EBITA margin 19.1% (A$195.1M) |
GPC Asia Pacific (Repco, NAPA) | FY2025 (Dec) | n/d (not separately verified) | — | — |
Recent Developments
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