Bapcor’s 2025 financial results have presented a mixed bag, according to RBC Capital Markets analyst Jack Lynch. While the company saw significant gains in its specialist wholesale business, these were partially offset by challenges in the trade and retail segments. Bapcor is a leading provider of vehicle parts, accessories, equipment, and services across the Asia Pacific region. The company operates through a network of trade, retail, and specialist wholesale businesses.
The specialist wholesale segment delivered a standout performance, exceeding earnings expectations by 6.2 per cent. This impressive result was attributed to cost efficiencies stemming from distribution centre rationalisation and branch consolidations. However, the trade segment experienced higher-than-expected operating deleverage, with second-half margins of 11.9 per cent falling short of RBC’s estimated 12 per cent. Furthermore, the company did not provide a forward outlook for this segment.
The retail and New Zealand segments also showed signs of deceleration, with implied second-half like-for-like sales slowing compared to the previous year. Overall, net profit for Bapcor came in slightly below the July guidance range, landing at $80.4 million. Despite these mixed results, RBC has maintained an “outperform” rating for Bapcor, setting a price target of $4.50.
Nevertheless, RBC anticipates that the market’s reaction to the results may be cautious, particularly given the early trading headwinds the company is facing. Reflecting this sentiment, shares in Bapcor were down 0.6 per cent following the announcement. Investors will likely be closely monitoring Bapcor’s performance in the coming periods to assess its ability to overcome the challenges in its trade and retail operations.
