AA (AA) H2 2026 earnings summary

Executive summary

• Achieved fifth consecutive year of growth, with customer holdings up 1% year-over-year to 16.4 million and strong operational delivery, reinforcing market leadership in UK driving services.

• Net revenue increased by 5% to £1.3 billion, and Adjusted EBITDA grew by 7% to £481 million, with margin improving by 1 percentage point to 38%.

• Strong customer engagement, with app usage up 43% year-over-year and 55% of breakdowns now reported digitally.

• Continued investment in technology, AI integration, and digital platforms driving efficiency, productivity, and customer satisfaction.

• Strengthened balance sheet through positive cash flow, debt reduction, and refinancing.

Financial highlights

• Net revenue up 5% year-over-year to £1.3 billion; Adjusted EBITDA up 7% to £481 million.

• Profit before tax increased by 10% to £92 million, driven by lower finance costs and EBITDA growth.

• Operating free cash flow before working capital rose 10% to £290 million; free cash flow before refinancing up 18% to £91 million.

• Group net debt reduced by £70 million to £1.9 billion; group leverage down to 4.0x.

• Group liquidity at £194 million, supporting future growth.

Outlook and guidance

• Entered the new year with positive momentum and continued growth in Q1.

• Management remains confident in mitigating expected macroeconomic headwinds and cost pressures.

• Targeting further reduction in group leverage below 4.0x and senior leverage below 5.5x.

• Focus remains on core roadside and insurance growth, technology rollout, and customer service excellence.