Bapcor, the 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, specifically its tools and equipment business. The company has flagged a $12 million pre-tax earnings hit related to these issues. Bapcor provides vehicle parts, accessories, automotive equipment, and services. With a network of trade, retail, and specialist wholesale businesses, it serves a diverse customer base.
The company now expects its statutory net profit for the first half of FY26 to be between $3 million and $7 million, a significant drop from its previous forecast of $14 million to $18 million. The full-year statutory net profit guidance has also been revised, now sitting between $40 million and $50 million. The issues were uncovered during a review of operational practices.
The review has led to immediate management changes and the commencement of 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 stated that the company’s growth strategy, focused on acquisitions, had not adequately addressed integration. He acknowledged the ongoing discovery of poor operational practices as frustrating but affirmed the company’s commitment to resolving the issues and meeting required operational and financial standards.
