Peter Warren Automotive Holdings (PWR) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 reached $1,268.5 million, up 3.2% year-over-year, driven by growth in used cars, service, parts, finance & insurance, and aftermarket.

• Underlying profit before tax (PBT) rose to $12.5 million, up $5.4 million year-over-year, reflecting organic growth and operational discipline.

• Gross margin improved to 16.2% from 16.1% in the prior year, indicating stable profitability.

• The Wakeling Automotive acquisition, adding 16 brands and 30 dealerships, is expected to deliver 20% revenue growth and is immediately EPS accretive.

• Leadership team strengthened with new CFO, CTO, and COO appointments to drive innovation and operational performance.

Financial highlights

• Operating expenses rose 2.4%, but opex as a percentage of revenue fell to 11.9%.

• Net debt reduced to $61.5 million, down from $83.8 million year-over-year.

• Underlying EBITDA grew 5.9% to $54.1 million; statutory PBT nearly doubled to $11.9 million.

• Basic EPS increased 105.7% to 4.32 cents; interim dividend per share up 87.5% to 3.0 cents.

• Service and parts revenue increased, with used car sales up 14% and new vehicle units sold up over 2%.

Outlook and guidance

• Expect continued growth in high-margin areas (used cars, service, F&I) and further margin improvement.

• Wakeling acquisition to further boost revenue and EPS upon completion.

• Ongoing focus on cost control, inventory management, and digital innovation.

• Market remains competitive and fragmented, with further M&A opportunities anticipated.

• Anticipates benefiting from Chinese brands' market share growth.