Bapcor Ltd. (BAP.AX): Offshore snippet: Genuine Parts (GPC) highlight weakening Automotive outlook; Sell

Research evidence excerpt

Bapcor Ltd. (BAP.AX): Offshore snippet: Genuine Parts (GPC) highlight weakening Automotive outlook; Sell

Equity Research

22 July 2026 | 8:47AM AEST

Bapcor Ltd. (BAP.AX): Offshore snippet: Genuine Parts (GPC) highlight

weakening Automotive outlook; Sell

GS take: The reported slowing of SSSg by GPC Australasia implies a weakening Elijah Mayr

+61(2)9321-8995 | elijah.mayr@gs.com

automotive industry environment, in our view, given commentary of continued Goldman Sachs Australia Pty Ltd

profitable market share gains by market leader Repco (GPC), an outlook for further Elise Bailey

deterioration in the consumer/SSSg and potential for input cost inflation as the Iran +61(3)9679-1344Goldman Sachs Australia| elise.bailey@gs.comPty Ltd

conflict continues. In aggregate, we consider the update a negative for Bapcor and

continue to see risk to the downside in the short term as it progresses through its

operational reset with evidence of sustained improvement in core Trade/Retail sales

required to turn more positive. Release (link). We are Sell rated on Bapcor (BAP).

Key takeaways:

n Australasia slowed to +1.3% SSSg and +1.8% total sales growth. Management

noted that despite challenging market conditions, Australasia had another solid

quarter with positive sales growth to both retail and trade customers.

n International Automotive SSSg outlook for CY26 lowered. International SSSg

for CY26 was lowered to +0.5-2.5%, from +1.5-3.5%. Given 1H26 SSSg of c.2.5%,

this implies 2HCY26 SSSg outlook of c.0.5% (mid-point). Australasia segments

accounts for c.32% of International Automotive sales (FY25). In costs, inflation

for the full year is projected in the low-single digit range, with tariffs and Iran

conflict as key contributors.

n Australia continues to take profitable share.