Bapcor has revised its first-half earnings guidance downward, citing challenging trading conditions in October and November. The automotive parts company, which supplies vehicle parts, accessories, and services, noted that strategic price reductions within its trade division have negatively impacted profit margins. This development has led to a narrower full-year outlook for the 2026 financial year.
The company now anticipates a statutory net loss ranging from $8 million to $5 million for the first half, which incorporates $19 million in pre-tax one-off items. Underlying net profit is projected to be between $5 million and $8 million. Bapcor reported that trade revenue fell short of expectations, with a decline in sales of tools and equipment. Management noted that targeted price adjustments aimed at regaining market share have exerted downward pressure on short-term margins.
In contrast, parts revenue experienced “modest growth”. The retail segment performed relatively well, with revenue increasing by 1.3 per cent in October and November, driven by Black Friday sales. The company’s networks and New Zealand segments are reportedly performing in line with previous expectations. One-off items impacting the statutory result include $15 million related to a review of the tools and equipment business, and $4 million in restructuring costs.
Looking ahead to FY26, Bapcor projects a statutory net profit of $31 million to $36 million and an underlying net profit of $44 million to $49 million. The company anticipates improved earnings in the second half of FY26, driven by sales initiatives, pricing strategies, and $20 million in expected pre-tax savings from previously announced cost-reduction measures.
