Bapcor’s Shock Plunge: What Went Wrong and What Comes Next?
So today, let’s talk about one of the biggest shocks on the ASX this week — the dramatic plunge in Bapcor’s share price. If you follow automotive retail or just keep an eye on the markets, you’ll know this wasn’t just a small dip. Bapcor, Australia’s leading auto parts supplier and the company behind brands like Autobarn, Autopro, Midas, and ABS, saw its stock drop a staggering 28% in a single day . That’s not just a red flag — that’s an alarm bell.
This happened as part of what's known in the finance world as “confession season” — the period just before reporting season when companies come clean about how they’ve really been performing. And unfortunately for Bapcor, the news wasn’t good.
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The company reported significantly weaker-than-expected trading results across all segments. What’s really alarming is how deep the miss was — second-half sales actually shrank by 6.2%, a steep fall from modest growth reported earlier in the year. Their FY25 revenue was around 3.5% below analyst expectations, and net profit after tax is now forecasted to land between $81 and $82 million. That’s well below what both RBC Capital and the market were anticipating — a miss of around 12% to 15% .
And if the financial numbers weren’t bad enough, Bapcor added fuel to the fire by announcing a wave of executive resignations . Three directors — Mark Bernhard, Brad Soller, and James Todd — all quit the board just after the market closed. That kind of leadership shake-up doesn’t exactly inspire confidence among investors, especially when it comes right alongside a profit downgrade.
Digging deeper, it looks like Bapcor’s troubles are a mix of both internal and external issues. Internally, they’ve been undergoing a major restructuring , especially in their Specialist Wholesale division. They tried consolidating three separate businesses into one (AEG), and that caused significant disruption. There were also closures and moves of more than 45 sites recently, which obviously comes with operational headaches.
Externally, the retail environment has been harsh. People are spending less on discretionary items — like car accessories and upgrades — and competitors have stepped up their game. Their promotional strategies also seem to have lost impact, and the New Zealand market in particular has proven especially tough.
Despite all this, executive chair and acting CEO Angus McKay remains optimistic. He says the company is taking steps to return to sustainable growth , but it’s clear there’s a long road ahead. Investors are rightly cautious. A 28% plunge isn’t just about one bad quarter — it’s about concerns over strategy, leadership, and long-term viability.
In short, this is a wake-up call for Bapcor — and a reminder to all investors that no stock, no matter how established, is immune to market realities and internal missteps.
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