Peter Warren Automotive Holdings (PWR) H2 2025 earnings summary

Executive summary

• FY25 revenue reached $2,483m, up 0.3% year-over-year, driven by strong used car, F&I, service, and recent acquisitions despite a decline in new car sales.

• Underlying EBITDA was $110.1m, with underlying PBT of $22.3m, reflecting margin pressure and higher costs but in line with guidance.

• Disciplined inventory management, cost-out programs, and headcount reductions delivered significant savings and improved second half performance.

• Net debt reduced to $46.7m, supported by $229m in property assets.

• 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.

• Gross margin declined by 0.8 percentage points year-over-year to 16.1%, but stabilized over the last 12 months.

• Operating expenses increased by $6.1m to $289.7m, mainly due to $12.5m in 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 5.6c per share.

Outlook and guidance

• New car market expected to remain highly competitive; focus on growing higher margin service, parts, finance, insurance, and aftermarket lines.

• Earnings growth anticipated for FY26, supported by ongoing cost and inventory management, innovation, and disciplined M&A.

• Gross margins expected to remain stable at current levels into FY26.

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