Motorcycle Holdings (MTO) investor relations material

Executive summary

• Achieved record half-year sales revenue of $396.4 million, up 20.9% year-over-year, driven by organic growth and the Peter Stevens/Harley-Heaven (PSHH) acquisition.

• Underlying NPAT rose 28.7% to $12.1 million, with underlying EBITDA up 21.0% to $31.7 million, reflecting strong operational performance and margin expansion.

• Net profit after tax increased 18.5% to $11.2 million, with market share in new vehicles rising to 19.8%.

• New retail motorcycle unit sales grew 22.3% to 9,966 units, and used motorcycle sales rose 12.5% to 6,224 units.

• Expanded national footprint to 55 locations, maintaining market leadership in Australia and New Zealand.

Financial highlights

• Gross profit grew 23.4% to $102.6 million, with gross margin improving to 25.9% from 25.2% year-over-year.

• Underlying earnings per share increased from 12.8 cents to 16.4 cents per share.

• Net debt reduced by 32.2% to $6.1 million, with strong cash generation and improved capital management.

• Interim dividend of 9.5 cents per share, fully franked, up 18.8% year-over-year.

• Inventory (excluding PSHH) reduced, reflecting operational efficiency.

Outlook and guidance

• Focus remains on cost management, digital transformation, omni-channel sales, and used vehicle sales expansion.

• Expecting increased contribution from PSHH in the second half as operations normalize.

• Positive FX tailwinds anticipated to further support gross margins.

• Cautious approach to second half due to seasonality and macroeconomic factors, but confident in full-year outlook.

• Climate-related disclosures to be included in the next annual report as per new regulatory requirements.