Peter Warren Automotive Holdings (PWR) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 was AUD 1.23 billion, up 2.2% year-over-year, driven by used cars, service, parts, finance, and acquisitions.

• Underlying profit before tax (PBT) was AUD 7.1 million, within guidance, but down due to new car oversupply impacting margins.

• H1 FY25 revenue for another segment declined 2.1% to $62.9 million, with Aerospace & Defence revenue up 79% and Motorsports up 5%.

• Net profit after tax fell 58.3% to $4.08 million, with EPS at 4.06c, reflecting lower revenue and increased costs.

• Interim dividends declared: AUD 0.016 per share (fully franked) and 2.00c per share, payable in March 2025.

Financial highlights

• New car revenue declined 9.1% year-over-year, while used vehicle revenue rose 7.5%.

• Service revenue grew 10.2%, parts revenue increased 4.3%, and A&D revenue surged 79%.

• EBITDA dropped 40.2% to $11.0 million, with margin down to 17.5% from 28.6%.

• Operating cash flow was AUD 29.2 million after floor plan interest; CapEx was AUD 6.8 million, higher due to expansions.

• Net cash position of $6.0 million at period end, with capital expenditure reaching $14.2 million.

Outlook and guidance

• No significant near-term improvement in market conditions expected; management actions to offset margin declines.

• FY25 revenue expected to be 5–10% below FY24 due to production disruptions from factory relocation.

• Focus on long-term sustainable growth in Aerospace & Defence and Motorsports, with selective expansion and cost initiatives.