Amotiv (AOV) H1 2025 earnings summary

Executive summary

• Revenue grew 2.3% to $503.7 million for H1 FY25, driven by Powertrain & Undercar (+5.8%) and Lighting, Power & Electrical (+3.6%), while 4WD & Trailering declined (-1.9%).

• Statutory NPAT fell 35.8% year-over-year to $33.0 million, impacted by a $9.4 million impairment in NZ and $1.0 million in other brand impairments.

• Underlying EBITA decreased 1.0% to $97.0 million, reflecting cost management and operational efficiencies amid challenging market conditions.

• Interim dividend maintained at 18.5cps; ongoing share buyback with $7.7 million spent in H1.

• Continued investment in growth, supported by a strong capital position and updated capital allocation framework.

Financial highlights

• Group revenue up 2.3% to $503.7m; organic revenue down 3.0% year-over-year.

• Underlying EBITDA increased 2.6% to $114.9m; underlying EBITA down 1.0% to $97.0m.

• Gross margin declined 75bps to 44.0% due to higher freight and adverse mix; cash conversion at 76.5%, would be 87.4% excluding one-offs.

• Net profit after tax: $33.0m (down 34.3% year-over-year); EPS (basic) down 35.9% to 23.4c.

• Interim dividend of 18.5c per share, fully franked; share buyback of ~733k shares for $7.7m.

Outlook and guidance

• Group revenue and underlying EBITA expected to grow in FY25, with a stronger H2 anticipated.

• Growth drivers include new business wins, product launches, pricing actions, and restructuring benefits.

• Cash conversion targeted at ~85%; corporate costs to be below prior year.

• Company remains well positioned to fund organic growth and consider bolt-on acquisitions, supported by $203.2m in unused borrowing facilities.