Turners Automotive Group Limited (ASX:TRA) applied its Dividend reinvestment plan to the FY26 final dividend, allowing participating shareholders to receive additional shares instead of taking their entire entitlement in cash. The final dividend was 9.0 New Zealand cents per share and was fully imputed.

The payment took total FY26 dividends to 33.0 cents per share, representing a 14% increase from FY25. The company pays dividends quarterly and has operated its DRP since 2023.

Latest developments

Turners reported Revenue of NZD 451.2 million for FY26, an increase of 9% from the previous year. Normalised net profit before tax increased 16% to NZD 63.2 million, while normalised net profit after tax rose 18% to NZD 45.6 million.

Reported net profit before tax increased 3% to NZD 55.7 million, while reported net profit after tax declined 1% to NZD 38.2 million. The difference between reported and normalised Earnings reflected a NZD 7.5 million Goodwill Impairment associated with EC Credit.

The company’s three core automotive divisions—Auto Retail, Finance and Insurance—each recorded profit growth during FY26. Turners also reported a record fourth quarter across the group.

Key numbers

Normalised Earnings Per Share increased 16% to 50.4 cents in FY26. Normalised EBIT increased 14% to NZD 70.6 million, while the company’s full-year dividend rose to 33.0 cents per share from 29.0 cents in FY25.

The Finance division’s Loan book increased 27% to NZD 566 million, while net profit before tax from the division increased 19%. Consumer arrears were reported at 2.5%, while net interest Margin increased to 5.7%.

Turners also increased its funding capacity through a NZD 200 million public securitisation transaction and new syndicated banking facilities, providing additional capacity to support planned branch expansion and lending growth.

About the company

Turners Automotive Group is an integrated financial services Business primarily focused on New Zealand’s automotive sector. Its operations span used-vehicle retailing, vehicle finance, insurance and debt-management services.

Auto Retail is the group’s largest business by revenue and provides a distribution platform that also supports the Finance and Insurance divisions. The company’s integrated model allows it to provide several automotive-related products and services across the customer relationship.

Turners is listed on both the ASX and NZX and reports its financial results and dividends in New Zealand dollars.

How the DRP works

Turners’ dividend reinvestment plan allows shareholders to apply eligible dividend payments toward additional ordinary shares rather than receiving the full amount in cash.

For the FY26 final dividend, the company applied a 2% discount to the relevant market price. The DRP Strike Price was NZD 8.09 per share, calculated using the volume-weighted average sale price of Turners shares on the NZX Main Board over five trading days beginning on 13 July 2026, less the 2% discount.

Turners issued 225,473 ordinary shares under the DRP in connection with the FY26 final dividend. Participation is optional, with shareholders who do not participate continuing to receive their dividends in cash.

Why the DRP matters

The DRP gives participating shareholders an alternative method of receiving dividends while allowing Turners to issue additional Equity under its existing Shareholder distribution framework.

The 2% discount applied to the FY26 final dividend means participating shareholders received their DRP shares at a price below the calculated market-based reference price. Future discounts and DRP terms remain subject to the company’s decisions for each dividend period.

Turners’ dividend policy targets distributions of approximately 60% to 70% of normalised net profit after tax. The company has also maintained quarterly dividend payments, with FY26 marking another increase in its annual distribution.

What comes next

Turners is targeting normalised net profit before tax of NZD 65 million in FY27, bringing forward a target that had previously been set for FY28. The company has also established a longer-term target of NZD 100 million in normalised net profit before tax by FY31.

Its growth strategy includes further expansion of the Auto Retail network, continued growth in vehicle lending and deeper integration across its automotive businesses. Additional funding capacity is intended to support the committed branch expansion pipeline and growth in receivables.

Management is also progressively reallocating Capital away from non-core operations toward its core automotive businesses. Future dividends and DRP terms will remain subject to board decisions and the company’s financial position.

Risks and context

Turners’ earnings remain exposed to conditions in New Zealand’s automotive and consumer markets. Demand for used vehicles, consumer confidence, funding costs and Credit quality can affect performance across the group’s Auto Retail and Finance businesses.

The Finance division carries exposure to borrower arrears and credit losses, while the EC Credit business has previously experienced weaker performance and required a goodwill impairment during FY26.

The DRP also results in the issue of additional shares when it operates through new equity, increasing the number of shares on issue. Currency movements are another consideration for Australian shareholders because Turners reports and pays dividends in New Zealand dollars.

Key Insights

Turners Automotive Group applied its DRP to the FY26 final dividend of 9.0 New Zealand cents per share, with participating shareholders receiving newly Issued Shares at a 2% discount to the applicable market-based price.

The company reported higher revenue and normalised earnings in FY26, while its full-year dividend increased 14% to 33.0 cents per share. Turners is now targeting further earnings growth through branch expansion, lending growth and continued development of its integrated automotive platform.