Autosports Group (ASG) H1 2025 earnings summary

Executive summary

• Revenue increased 2.1% year-over-year to $1,369 million, driven by the Stillwell Motor Group acquisition, despite a challenging luxury vehicle market down 13%.

• EBITDA declined 25.7% to $80.1 million, with gross margin down 1.4 percentage points to 18.3% due to lower new vehicle margins and inventory reduction strategy.

• Normalised net profit before tax fell 63.1% to $20.2 million, impacted by higher interest costs and market headwinds.

• Interim dividend of 3.5 cents per share, fully franked, declared for FY25, down 61.1% year-over-year.

• Operating cash flow remained strong at $78.8 million, enabling debt repayment and investment in acquisitions.

Financial highlights

• Total revenue rose to $1,369.4 million from $1,341.5 million, up 2.1% year-over-year, with $80 million from acquisitions offsetting organic declines.

• Gross profit decreased 5.5% to $250.4 million; operating expenses increased 8.5% to $170.3 million.

• EBIT dropped 39.2% to $47.6 million; NPAT declined 70.6% to $10.4 million.

• EPS fell 70.5% to 5.16 cents; DPS down 61.1% to 3.5 cents.

• Net cash from operating activities increased to $78.8 million from $51.2 million year-over-year.

Outlook and guidance

• Cautious outlook for H2 FY2025; new vehicle market expected to remain challenging.

• Inventory levels to be closely managed and adjusted in line with market trends.

• Used car, service, parts, and collision repair businesses expected to remain resilient and grow.

• Full-year revenue to benefit from SMG acquisition and new greenfield sites for Polestar and Zeekr.

• Directors believe the Group will generate positive operating cash flows and operate within finance facilities through at least February 2026.