Australia's Bapcor FY26 profit outlook downgraded by Morningstar over retail slump

Bapcor

20/10/2025 20:34

** Morningstar cuts FY26 underlying net profit outlook for Australia's Bapcor BAP.AX by 36% to A$60 mln, citing lower profitability at baseline and weaker retail performance

** Car parts retailer said on Monday it expects H1 FY26 underlying NPAT A$14 mln to A$18 mln, below A$45.5 mln ($29.57 mln) a year ago

** Brokerage says it finds the possibility of more skeletons in co's closet concerning after Bapcor flagged unsatisfactory practices in its tools and equipment unit and said H1 profit will be hit by A$12 mln in margin and stock-related impairments

** Flags co's Autobarn retail business is losing market share, with co's trade segment facing competition pressure as well

**  Says poorly integrated non-core acquisitions have distracted from core trade business

** However, notes CEO's efforts towards business simplification, cost reductions and investment in competitive advantages in trade segment

** YTD, stock down 44.7%

($1 = 1.5389 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Cynthia Osterman)

 ((Shruti.Agarwal@thomsonreuters.com))