AA (AA) H2 2025 earnings summary

Executive summary

• Revenue increased 12% year-over-year to £1,450m, with net revenue up 8% to £1,213m.

• Adjusted EBITDA rose 6% to £450 million, and operating profit surged 28% to £245 million.

• Customer holdings grew by 300,000 to 16.3 million, reinforcing market leadership.

• Net Promoter Score (NPS) improved by 7 points to 57, reflecting enhanced customer satisfaction.

• Profit before tax doubled to £84m, and profit for the period more than doubled to £64m.

Financial highlights

• Net revenue up 8% year-over-year.

• Adjusted EBITDA increased 6% to £450 million.

• Operating profit up 28% to £245 million.

• Free cash flow improved 8% to £77m, and net increase in cash and cash equivalents was £58m.

• Net debt reduced by £198 million, aided by the Stonepeak transaction.

Outlook and guidance

• CapEx as a percentage of revenue expected to decline, following completion of major replatforming.

• Targeting leverage below 4.0x in the medium term.

• Growth strategy shifting from core business to adjacent services, mainly through organic expansion.

• No immediate plans for refinancing; next major debt maturity in July 2027.

• Forward-looking statements are subject to risks and uncertainties, with no profit forecast provided.