Bapcor’s shares jumped 20.3% after the company reported a fiscal 2026 underlying EBITDA of AUD 152.5 million, beating the top end of May guidance, despite a statutory loss of AUD 431.6 million driven by AUD 442.4 million in post-tax impairments.
Revenue declined 1.8% year-over-year to AUD 1.924 billion, while underlying EBIT reached AUD 51.4 million and underlying net profit after tax totaled AUD 10.8 million. Gross margin fell 3.3% to AUD 872.1 million, with the gross margin rate down 72 basis points to 45.3%, reflecting ongoing cost pressures from oil-related inflation estimated at AUD 24.7 million annually.
Cash flow strengthened materially, with operating cash flow of AUD 166.9 million and a cash conversion rate of 109.4%, up from 86.5% in fiscal 2025. Net debt decreased by AUD 229.8 million to AUD 135 million, supported by a second-half working-capital program that generated AUD 68.5 million in cash.
Management highlighted progress in inventory and receivables management, with overdue debtors reduced by AUD 14.5 million and total inventory lowered by AUD 22.5 million. More than 80% of prices were reviewed across trade businesses, with in-store discounting reduced by 16 percentage points to around 8%, and over 13,000 price changes implemented in retail operations.
Chris Wilesmith, CEO and managing director, described fiscal 2026 as a "year of reset," noting the company has laid foundations for recovery after five years of market share decline. He added that the business is now shifting into a "building momentum" phase, with expected progress over the next 6 to 24 months.
Kim Kerr, CFO, emphasized the improvement in cash conversion, attributing it to the working-capital initiative and tighter operational controls. The company also reported a 15% reduction in team turnover since December and plans to train 200 senior leaders through the Deakin Leadership Program by year-end.
