Highlights

  • Turners Automotive Group reported a record normalised net profit before tax (NPBT) of $63.2 million for FY26, a 16% increase on the prior year, with Q4 FY26 constituting the strongest quarter in the company's history.
  • All three core divisions — Auto Retail, Finance, and Insurance — delivered profit growth for the year, while the Finance division's Loan book surged 27% to $566 million and new lending grew by more than 50%.
  • The Board declared a final Dividend of 9.0 cents per share (fully imputed), bringing total FY26 dividends to 33.0 cents per share — a 14% increase on FY25 and part of a 12-year consecutive dividend growth track record.

 

Turners Automotive Group (ASX:TRA) has closed its financial year ended 31 March 2026 (FY26) with a result that sets a new high watermark for the integrated automotive, finance, and insurance group. The company reported a record normalised net profit before tax of $63.2 million, representing growth of 16% over FY25 and cementing its trajectory as one of New Zealand's most consistently outperforming listed companies. What makes the result particularly notable is the context in which it was achieved: FY26 was, by management's own description, a year of two distinctly different halves.

The first six months were characterised by a soft consumer environment, compressed margins in Auto Retail, and limited transactional Volume. Consumer confidence remained subdued across New Zealand through much of this period, and the macroeconomic backdrop constrained Turners' ability to push unit pricing or volume aggressively. Despite these headwinds, management maintained discipline across inventory positioning, Credit standards, and cost management — a playbook the group has honed since the disruptions of the Covid era. That discipline laid the groundwork for a materially stronger second half.

As consumer confidence recovered through the back half of the year, Turners capitalised on its proactive stock management and its multi-division model. The turnaround was dramatic: Q4 FY26 was the strongest quarter in the company's history across normalised NPBT. Revenue for the full year grew 9% to $451.2 million, with contributions from Auto Retail (+$27 million), Finance (+$9 million), and Insurance (+$3 million) more than offsetting a modest decline in the Credit segment (-$2 million). Group normalised EBIT grew 14% to $70.6 million, with total Assets reaching $1.071 billion.

Finance Division: The Standout Performer

Among Turners' three core divisions, it was the Finance arm that delivered the most striking result for FY26. The loan book expanded 27% to $566 million, with new lending increasing by more than 50% over the year — a rate of growth that significantly outpaced the broader consumer finance market. The division's normalised NPBT rose 19%, and its net interest Margin (NIM) lifted to 5.7%, reflecting both pricing discipline and a improving funding cost structure.

The group completed its inaugural public securitisation transaction in October 2025, terming out a $200 million Warehouse Facility and achieving improved funding rates while reducing the Capital commitment tied up in receivables funding. New syndicated banking facilities were also executed in March 2026, further extending the runway for loan book growth. Consumer arrears within the Turners Finance book stood at just 2.5% against an industry average of 5.6% — a differential that speaks to the quality of the group's Underwriting and credit management processes.

Auto Retail and Insurance: Resilience Through the Cycle

The Auto Retail division demonstrated the durability of Turners' vertically integrated model through what was a challenging first half for used car markets. Total owned units sold were up 9% for the full year, supported by a strong commercial division that benefited from elevated Liquidation volumes and increased damaged-vehicle Supply. Three new Christchurch branches were opened during the year and are now fully operational, contributing to the network's growing geographic footprint. The Tina 2.0 Brand campaign launched in May 2025 also supported customer Acquisition and awareness across key markets.

Insurance delivered steady, compounding growth consistent with its Annuity-style revenue characteristics. Segment revenue increased 5% and normalised NPBT rose 7%, with growth across all insurance portfolios. The division's direct-to-consumer (D2C) comprehensive insurance offering continued to expand as an additional revenue channel, supplementing the dealer and finance broker Partnership network. Claims cost Inflation was managed effectively through the year, supporting margin preservation.

Earnings Per Share, Dividend, and Capital Management

Normalised earnings per share rose 16% to 50.4 cents per share, mirroring the NPBT growth rate. The reported NPBT of $55.7 million — lower than the normalised figure — included a non-cash Goodwill write-down of $7.5 million on the EC Credit (ECCC) Business, consistent with the $7 to $9 million range flagged in the company's March 2026 guidance update. Reported NPAT was $38.2 million while normalised NPAT came in at $45.6 million, up 18%. Shareholders' Equity grew to $318 million, from $299 million a year earlier, reflecting Retained Earnings partially offset by dividend distributions.

The Board declared a final dividend of 9.0 cents per share, fully imputed, taking total FY26 distributions to 33.0 cents per share — a 14% increase on FY25 and part of an unbroken 12-year dividend growth record representing a compound annual growth rate of 10.5%. The dividend reinvestment plan (DRP) will apply to the final payment. Capital is being progressively reallocated away from the EC Credit segment, which has been repositioned as a managed-for-cash business with potential for divestment over the medium term, towards core automotive operations.

Target History and the Road to $100M NPBT by FY31

Turners has developed a well-earned reputation for setting ambitious multi-year financial targets and then exceeding them ahead of schedule. The company delivered its $45 million FY24 NPBT target a year early, then repeated the feat with its $50 million FY25 NPBT target. With FY26 normalised NPBT now at $63.2 million, the $65 million target originally assigned to FY28 is now expected to be achieved in FY27 — again a full year ahead of plan. This track record of target outperformance has become a meaningful differentiator in how the market assesses the credibility of Turners' guidance.

The group's next multi-year objective is to reach $100 million NPBT by FY31, as outlined at the March 2026 Investor Day. FY27 is expected to be a year of groundwork rather than rapid branch expansion — no new retail branches are scheduled to open, though four new branches and two replacement branches are currently in development for the FY28 financial year. Finance is expected to benefit from a materially larger opening loan book and stable margins. The onset of the Iran-US conflict in late March 2026 softened early FY27 trading and April conditions remained subdued, though management has activated its established macro downturn playbook in response.

Conclusion

Turners Automotive Group's FY26 result is a demonstration of what a well-integrated, multi-division model can achieve when each business unit performs in concert. The record Q4 capped a year of deliberate strategy execution — disciplined through the soft first half, assertive when conditions improved. With a 27% loan book expansion, a 14% lift in dividends, a steadily growing insurance book, and a third consecutive multi-year profit target on course to be beaten early, Turners enters FY27 with structural momentum intact. The near-term softening in consumer sentiment presents a challenge, but one that the group has demonstrably navigated before.