Peter Warren Automotive Holdings (PWR) investor relations material

Executive summary

• Revenue for H1 FY26 increased 3.2% year-over-year to AUD 1.27 billion, driven by strong growth in used cars, service, parts, finance & insurance, and aftermarket.

• Underlying profit before tax (PBT) rose to AUD 12.5 million, up AUD 5.4 million year-over-year, with net profit after tax attributable to owners rising to AUD 7.4 million.

• Gross margin improved to 16.2% from 16.1% in the prior year, reflecting stable profitability.

• Acquisition of Wakeling Automotive, adding 16 brands and 30 dealerships, is expected to deliver 20% revenue growth and be immediately EPS accretive.

• Leadership strengthened with new CFO, CTO, and COO appointments to drive innovation and operational performance.

Financial highlights

• Gross profit increased by AUD 6.6 million, with gross margin stable at 16.2%.

• Operating expenses rose by 2.4%, but OpEx as a percentage of revenue fell to 11.9%.

• Underlying EBITDA grew 5.9% to AUD 54.1 million; statutory PBT nearly doubled to AUD 11.9 million.

• Net debt reduced to AUD 61.5 million from AUD 83.8 million, with net debt/property LTV at 27%.

• Interim dividend declared at AUD 0.03 per share, up over 80% year-over-year.

Outlook and guidance

• Continued focus on high-margin areas (used cars, service, parts, F&I) and leveraging technology and AI to enhance efficiency and customer experience.

• Wakeling acquisition expected to further boost revenue and EPS upon completion.

• Market remains highly competitive and fragmented, with further M&A activity anticipated.

• Gross margin expected to improve further, with management targeting incremental gains.

• No significant changes in material business risks or outlook since the last annual report.