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) has 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 the guidance the company gave back in June. Statutory profit before tax fell to $11.5 million from $19.3 million. The market reaction was sharp: PWR shares were trading at A$0.90, down 5.76% (−A$0.055) on the day as at 10:46am GMT+10 on 21 August, as the weaker Earnings and dividend cut outweighed record used vehicle and service performance.

Revenue Steady, Margin Improves

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

Costs Rise, Earnings Compress

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

Dividend Cut Sharply

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 versus 5.6 cents the prior year. Net Debt edged up slightly to $47.4 million from $46.7 million, and Basic Earnings Per Share fell to 3.69 cents from 7.03 cents.

Dealership Network Keeps Growing

The company added nine new dealerships during the year without adding new leases, and says it has added one new Chinese brand dealership to its portfolio on average every six weeks since January 2025. Several senior appointments were also made over the period, including a new Chief Financial Officer, Chief Operating Officer and Chief Technology Officer.

Wakeling Deal Still in Progress

Peter Warren says 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 has flagged 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 balance sheet.

The Bottom Line

Peter Warren Automotive’s FY26 result reflects the pressure new vehicle margins are under across the Australian auto 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 efforts, and a pending Wakeling Automotive acquisition still awaiting regulatory approval.