Key Highlights

  • Underlying profit before tax fell to $14.5 million from $22.3 million in FY25
  • Revenue edged up slightly to $2,489.3 million from $2,482.6 million
  • Gross Margin improved to 16.3% on record used vehicle and service revenue
  • Final Dividend cut to 0.6 cents per share from 4.0 cents; total dividend down to 3.6 cents from 5.6 cents

Peter Warren Automotive Holdings Limited (ASX:PWR) reported Underlying Profit before tax of $14.5 million for the financial year ended 30 June 2026, down from $22.3 million in FY25, in line with guidance the company provided in June. Statutory profit before tax fell to $11.5 million from $19.3 million.

Revenue and Margin

Revenue increased marginally to $2,489.3 million from $2,482.6 million in FY25. Gross Profit rose to $406.0 million and gross margin improved to 16.3%, supported by record used vehicle sales of 10,578 units and record service and parts Revenue of $442 million, which offset continued pressure on new vehicle margins and a lower average new vehicle sell price.

Costs and Earnings

Operating expenses increased $18.7 million to $308.4 million, reflecting spending associated with Business transition initiatives, new dealerships, an expanded Brand portfolio, and broader inflationary pressures. Underlying EBITDA declined to $97.6 million from $110.1 million in FY25. Interest costs fell to $43.8 million from $49.1 million, reflecting lower average new vehicle stock holdings and an improved inventory ageing profile.

Dividend Reduced

The Board declared a fully franked final dividend of 0.6 cents per share, down from 4.0 cents in FY25, bringing the total dividend for the year to 3.6 cents per share compared with 5.6 cents in the prior year. Net Debt increased slightly to $47.4 million from $46.7 million, and basic Earnings per share fell to 3.69 cents from 7.03 cents.

Portfolio Expansion Continues

During the year, the company added nine new dealerships without adding new leases, and said it has added one new Chinese brand dealership to its portfolio on average every six weeks since January 2025. Peter Warren also made several senior appointments during the year, including a new Chief Financial Officer, Chief Operating Officer and Chief Technology Officer.

FY27 Priorities

The company said it continues to progress the proposed Acquisition of Wakeling Automotive, which remains subject to approval from the Australian Competition and Consumer Commission. For FY27, management outlined priorities including continued brand portfolio expansion, margin and mix improvement through higher-margin service, parts and used vehicle growth, cost optimisation initiatives, and disciplined Capital deployment supported by the company's balance sheet.

Conclusion

Peter Warren Automotive's FY26 result reflects the pressure new vehicle margins have come under across the Australian automotive market, with underlying profit and dividends both lower than the prior year despite broadly flat revenue and record performance in used vehicles and service and parts. The company enters FY27 with an expanded brand portfolio, ongoing cost optimisation initiatives and a pending acquisition of Wakeling Automotive that remains subject to regulatory approval.