Bapcor, an auto parts group that owns retail brand Autobarn and the Burson Trade network, has announced a profit downgrade following the discovery of “unsatisfactory operational practices” within its core trade division, particularly its tools and equipment business. The company expects a $12 million pre-tax earnings hit. Bapcor provides automotive aftermarket parts, accessories, automotive equipment, and services. The group operates across the Asia Pacific region.
The company now anticipates its statutory net profit for the first half of FY26 to be between $3 million and $7 million. The full-year statutory net profit guidance is now projected to be between $40 million and $50 million. These revisions reflect the impact of the identified operational issues.
The review that triggered the downgrade revealed the necessity for immediate management changes and an externally supported operational review, according to Bapcor. The $12 million pre-tax negative impact for the first half of the 2026 financial year is attributed to non-recurring margin impacts, stocktake variances, and stock adjustments resulting from the historic operational failures.
Bapcor executive chairman Angus McKay acknowledged the issues. “Our roots have been built on acquiring businesses, not integrating them. Some of the practices that have been accepted inside the wider business do not meet acceptable operational standards nor the required financial/commercial expectations,” McKay said. He added, “I acknowledge the continued discovery of historic poor operational practices is frustrating. However, we are committed to facing into the issues and correcting them.”
