Eagers Automotive (APE) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of $6.5 billion, up 18.9% year-over-year, with balanced growth from organic expansion, acquisitions, and retail joint ventures.

• Underlying profit before tax rose 8.3% to $197.7 million, and underlying EBITDA increased 11.6% to $296.7 million, both exceeding prior guidance.

• Statutory net profit after tax rose to $134.2 million, up 8.8% year-over-year, with interim fully franked dividend of 24.0 cents per share maintained.

• New and used car deliveries increased 22% and 16.7% year-over-year, driving market share gains to 13.8%.

• Operational resilience and cost efficiency supported margin stability and record productivity.

Financial highlights

• Revenue reached $6.5 billion, up $1 billion from the prior period, with underlying EBITDA margin at 4.6% (down from 4.9% in 1H24 but above long-term average).

• Statutory profit before tax was $193.4 million, up 6.7% year-over-year.

• Statutory profit after tax was $134.2 million, up from $123.4 million in 1H 2024.

• Net corporate debt reduced to $447.2 million from $813.1 million in December 2024, with liquidity at $1,077.9 million.

• First half dividend maintained at $0.24 per share; 8.2% CAGR in EPS and 9.8% CAGR in dividends over 10 years.

Outlook and guidance

• Full-year revenue expected to reach at least $13 billion, with continued market share gains and strong industry conditions.

• Prior headwinds anticipated to become tailwinds in 2H 2025, supported by expected cash rate reductions.

• Focus remains on sustainable, accretive optimization, disciplined capital deployment, and leveraging the Mitsubishi Corporation alliance.

• Easy Auto 123 and greenfield businesses to drive further growth; BYD volumes expected to exceed 40,000 for the year.

• Resilient demand and a strong order bank support a positive outlook, though caution remains regarding economic and inflationary headwinds.