Peter Warren Automotive Holdings (PWR) H2 2025 earnings summary

Executive summary

• FY 2025 revenue reached $2,483m, just under AUD 2.5 billion, slightly ahead of FY 2024, driven by strong used car, F&I, service, and recent acquisitions despite a decline in new car sales.

• Underlying EBITDA was just over AUD 110 million, with underlying profit before tax of AUD 22.3 million, reflecting margin pressure and higher costs but in line with guidance.

• Disciplined inventory management and cost-out programs delivered $4.9m in lower costs in H2 versus H1, with net debt reduced to $46.7m and property assets at AUD 229 million.

• Strategic focus on innovation, customer-centricity, organic growth, and disciplined acquisitions to drive long-term value.

Financial highlights

• Used vehicle sales grew 14% to 9,702 units; service and parts revenue rose to $422m, up from $405m.

• Gross margin declined by 0.8 percentage points year-over-year to 16.1%, mainly due to lower new car margins, but stabilized over the last 12 months.

• Operating expenses increased by $6.1m, mainly due to acquisitions, but net OpEx reduction achieved after adjusting for these.

• Operating cash flow was $93.7m, with strong cash conversion at 86.4%.

• Fully franked final dividend of 4.0c per share, total dividend for the year AUD 0.056 per share.

Outlook and guidance

• New car market expected to remain highly competitive with new brands entering and margin pressure persisting.

• Earnings growth anticipated for FY 2026, supported by ongoing cost and inventory management, innovation, and disciplined M&A.

• Gross margins expected to remain stable at current levels into FY 2026.

• Anticipated product launches and improved OEM alignment expected to support stable order rates and positive activity.