AA (AA) H1 2027 earnings summary

Executive summary

• Total holdings reached 16.7m, up 2% vs FY26; net revenue rose 5% to £656m and Adjusted EBITDA rose 8% to £262m, with growth across all three segments.

• Positive cash generation supported lower Group leverage of 3.7x vs 4.0x at FY26.

• Confidence in the outlook for the remainder of FY2027, supported by operating performance and positive cash generation.

Financial highlights

• Adjusted EBIT rose 10% to £155m; operating profit rose 12% to £144m, while profit before tax was £53m vs £60m and profit for the period was £43m vs £44m.

• Operating free cash flow before working capital increased 9% to £165m; a £13m working-capital outflow preceded £52m free cash flow after tax, pension and other items.

• Net margin was 40%, up 1ppt; available liquidity was £243m, up £49m vs FY26.

Outlook and guidance

• Targeting Group leverage at or below 4.0x and senior leverage at or below 5.0x; distributions to be considered against the business plan and cash requirements.

• Next debt maturity is July 2028.