MaxiPARTS (MXI) H1 2025 earnings summary

Executive summary

• Operates two divisions: MaxiPARTS (truck/trailer parts) and Förch Australia (workshop consumables), with Förch acquired in May 2023 and expanding nationally.

• Delivered strong revenue and EBITDA growth in HY25, driven by acquisitions, organic initiatives, and national expansion, despite a softer East Coast market.

• Resolved major legal disputes related to the sale of the Trailer Solutions business, resulting in a $2.2m cash inflow and reduced legal risk.

Financial highlights

• Revenue for HY25 was $136.9m, up 22.6% year-over-year, with EBITDA at $13.7m, up 28.6%, and EBITDA margin at 10%.

• Net profit after tax from continuing operations was $4.3m, up from $2.8m year-over-year; total NPAT was $3.8m.

• Earnings per share from continuing operations rose to 7.62 cents, up 35.3% year-over-year.

• Cash conversion rate was 88% for the half, with gross operating cash flow of $12m.

• Interim dividend of 3.05 cents per share (fully franked) declared, up 18.7% year-over-year.

Outlook and guidance

• Expects continued challenging market conditions, especially on the East Coast, with Western Australia remaining robust.

• Anticipates ongoing revenue and margin improvement from organic activities and further investment in Förch.

• Forecasts double-digit revenue growth for Förch and Japanese parts programs in the near to medium term.

• All bank covenants were satisfied as at 31 December 2024 and during the period.