Turners Automotive Group (TRA) H2 2025 earnings summary

Executive summary

• Achieved record FY25 profit and dividend, marking the fifth consecutive record result and capping a decade of growth and resilience despite challenging macro and consumer conditions.

• Diversified business model with all four divisions (Auto Retail, Finance, Insurance, Credit Management) contributing to growth, especially in the second half.

• Employee engagement remains high, with over 50% share scheme participation supporting strong culture and performance.

• Profits have nearly tripled over the past decade, with strong dividend and share price growth.

• On track to reach FY28 profit targets earlier than expected, with strong momentum entering FY26.

Financial highlights

• Revenue $414.2m, down 1% year-over-year; NPBT $54.3m, up 10%; NPAT $38.6m, up 17%; EBIT $62.3m, up 6%.

• Earnings per share 43.3 cps, up 17% year-over-year.

• Full year dividend of 29 cps, up 14%, with a final dividend of 9.0 cps; dividend yield 6.6% based on $6.10 share price.

• Dividend payout ratio maintained at 60%-70% of NPAT.

• Finance receivables grew to $442m at Mar25, with weighted average interest rate at 13.62%.

Outlook and guidance

• Targeting $65m NPBT by FY28, with potential to achieve this earlier; further profit growth expected in FY26 as NZ economy recovers and interest rates decline.

• Continued expansion through new branches, retail optimisation, and growth in finance, insurance, and credit management.

• Finance division to maintain credit discipline, with solid book growth and NIM consolidating around 6.0%.

• Insurance to see stable earned premium and new contributions from digital and direct sales.

• No formal FY26 guidance issued, but growth anticipated across all divisions.