Bapcor leads ASX200 losses after guidance downgrade
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More news: Bapcor was the worst performer in the ASX200 after downgrading its full-year statutory net profit and tax guidance.
Shares plunged to 18.64% to $1.91 as of 11:29am AEDT. The stock is now down 58.84% year to date.
RBC Capital Markets analyst Jack Lynch said the downgrade appears to be driven by softer trading performance in October and November. He sees risk to this guidance given uncertainty around the timing of the margin recovery in order to regain market share in a challenging environment.
Meanwhile, Citi has labeled the stock as high risk and says it remains cautious as "there are insufficient signs of a credible turnaround".
Bapcor expects first-half loss, downgrades FY26 profit guidance
The news: Autobarn owner Bapcor has lowered its full-year statutory net profit after tax guidance after “below expectation” trading in October and November as tools and equipment revenue fell year on year.
The numbers: Due to weaker trading performance in October and November, Bapcor said it expects net loss after tax in the range of $5 million to $8 million for the first half of FY26.
This includes a roughly $13 million post-tax non-recurring item but excludes potential impairments to the New Zealand segment announced in October. Underlying NPAT without these items is expected to be in the range of $5 million to $8 million.
Pre-tax one-off costs that are included in the statutory NPAT range includes the estimated $15 million impact of a review of the tools and equipment business in the Trade segment. This is $3 million higher than previously expected. Restructuring costs pre-tax are still expected to be about $4 million.
Full-year statutory NPAT guidance for FY26 was cut back to between $31 million and $36 million, from between $40 million and $50 million, excluding the New Zealand impairment. Underlying NPAT for FY26 before the non-recurring items is expected to be in range of $44 million to $49 million.
However, NPAT in the second half of FY26 is in line with previous expectations.
What they said: “The weaker operational performance in October and November is disappointing,” Bapcor CEO Angus McKay said.
“Although, the turnaround of the business is more challenging and taking longer than expected we are committed to doing the difficult work that will result in a stronger, more sustainable company.”
The source: ASX
