Autobarn owner Bapcor is starting to show signs of recovery after taking a heavy financial hit in fiscal 2026.

The automotive retailer incurred a $431.6 million loss in 2026. The result came after a long-attempted turnaround strategy which has centred on returning focus to its core operations, improving pricing and reviewing its wider operations, including its 1000-strong store portfolio across the Asia Pacific region.

This review of operations has seen continued store closures, which have dented Bapcor’s bottom line.

But company CEO and MD Chris Wilesmith told investors that the early signs from fiscal 2027 show green shoots for the ASX-listed retailer, despite a troubling retail environment.

“Encouragingly, on a constant-currency basis, group like-for-like sales increased by 0.5 per cent (in Q1, 2027) versus the comparable quarter, and total sales increased by 0.3 per cent,” he said.

“We are also seeing the benefits of the targeted pricing initiatives implemented during the second half of FY26, with gross margin percentage improving in both trade and retail compared with the prior corresponding period.”

The company also managed to achieve a further $19 million reduction in its net debt, alongside improved gross margins.

“The first quarter performance provides further evidence that our turnaround initiatives are gaining traction, and we remain confident on delivering against our FY27 outlook expectations,” Wilesmith added.

Bapcor expects to end fiscal 2027 with a “modest” growth in revenue. It cited external pressures, such as the ongoing conflict in the Middle East and a heightened cost of living.

It said that any additional capital will continued to be invested into improving technology and personnel.

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