Why is the Bapcor share price crashing 19% on Tuesday?

Investors are punishing Bapcor shares today. But why?

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Key points

  • Bapcor's share price plummeted 18.7% after the company issued a profit warning for FY 2026, citing weaker-than-expected trading performance in October and November.
  • The company's Trade segment underperformed due to price reductions aimed at regaining market share, impacting profit margins temporarily, but expected to boost future volume growth. 
  • Statutory NPAT for 1H FY 2026 is forecasted to be a loss between $5 million and $8 million.

The Bapcor Ltd (ASX: BAP) share price is in free fall today.

Shares in the beleaguered S&P/ASX 200 Index (ASX: XJO) auto parts company closed yesterday trading for $2.35. In morning trade on Tuesday, shares are changing hands for $1.91 each, down 18.7%.

For some context, the ASX 200 is down 0.3% at this same time.

Here's what's got investors reaching for their sell buttons.

Bapcor share price tanks on lower guidance

The Bapcor share price is under heavy pressure today after the company released updated guidance for the first half of FY 2026 as well as for the full FY 2026 year. And as you can guess by the market's reaction today, the revised guidance was to the downside.

The company said that its trading performance in October and November was "below expectation".

Bapcor's Trade segment was a particular drag on performance. Management said that revenue fell year on year in tools and equipment, noting that parts revenue managed to grow "modestly".

Part of the headwinds hitting the Bapcor share price arise as the company's Trade business has been investing in pricing across specific parts categories to regain Bapcor's market share. The company noted that these price reductions have crimped profit margins in the short term, while they are expected to drive volume growth in the future.

With the weaker-than-expected trading performance in October and November in mind, Bapcor said it now expects statutory net profit after tax (NPAT) for 1H FY 2026 to be a loss in the range of $5 million to $8 million.

Bapcor expects underlying NPAT for 1H26 (before one-off/non-recurring items) to be in the range of $5 million to $8 million.

As for the full 2026 financial year, the company now expects statutory NPAT to be in the range of $31 million to $36 million. That excludes the potential 1H26 impairment associated with the company's New Zealand segment.

The company expects underlying NPAT for FY 2026 (before the anticipated 1H26 one-off/non-recurring items) to be in the range of $44 million to $49 million.

What did management say?

Commenting on the performance update that's pressuring the Bapcor share price today, CEO Angus McKay said, "The weaker operational performance in October and November is disappointing."

Looking ahead, McKay added:

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.

I am excited by the appointment of Craig Magill and Dean Austin to key EGM roles in the Trade and Retail segments respectively. Craig has significant Bapcor and automotive experience and Dean brings extensive retailing and merchandising experience.

With today's intraday losses factored in, the Bapcor share price is down a painful 58.7% in 2025.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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