Highlights

  • AMA Group shares increased 6.60% to AUD 0.56 on 22 April 2026 after its Q3 FY26 update
  • Group revenue rose to AUD 254.2 million in Q3 FY26, up from AUD 249.6 million in Q3 FY25
  • Normalised EBITDA (pre-AASB 16) stood at AUD 17.9 million for the quarter
  • Year-to-date EBITDA increased to AUD 48.4 million compared to AUD 46.1 million in the prior period
  • FY26 EBITDA guidance maintained at AUD 70 million to AUD 75 million

AMA Group Ltd (ASX:AMA) shares moved higher by 6.60% to AUD 0.56 during the morning session on 22 April 2026, following the release of its third-quarter FY26 business update. Despite the latest gain, the stock remains down 13.08% over the past year, reflecting broader performance trends even as recent operational updates indicate ongoing progress.

The share price increase aligns with the company’s latest quarterly update, which outlined a mix of steady financial performance and operational improvements across several business segments. While certain metrics reflected moderation compared to the prior corresponding period, the overall update pointed to continued progress in key areas and reaffirmation of full-year expectations.

Company Overview

AMA Group Limited operates across vehicle collision repair and automotive parts supply, with a network spanning multiple segments including Capital SMART, AMA Collision, Wales, Specialist Businesses, and ACM Parts.

The company’s operations cover collision repair services, mechanical work, and parts distribution, supporting a range of customers including insurers, OEMs, and individual vehicle owners.

AMA Group’s strategy focuses on improving operational efficiency, enhancing service capabilities, and delivering sustainable profitability across its network.

Financial Performance Reflects Mixed but Improving Trends

For the quarter ended 31 March 2026, AMA Group reported revenue of AUD 254.2 million, compared to AUD 249.6 million in Q3 FY25. This indicates a moderate increase in top-line performance, supported by contributions across its repair and parts businesses.

Normalised EBITDA (pre-AASB 16) for the quarter was AUD 17.9 million, compared to AUD 21.1 million in the prior corresponding period. While this represents a decline on a quarterly comparison, the year-to-date performance shows improvement, with EBITDA reaching AUD 48.4 million for FY26 to date, up from AUD 46.1 million in FY25.

On a reported basis, EBITDA (post AASB 16) for Q3 FY26 stood at AUD 32.7 million, compared to AUD 34.3 million in Q3 FY25. The EBITDA margin (pre-AASB 16) was recorded at 7.0% for the quarter.

Operating cash flow (pre-AASB 16) recorded an outflow of AUD 0.4 million during Q3 FY26. This compares to an inflow of AUD 5.3 million in Q3 FY25, with the difference partly reflecting a higher income tax payment of AUD 6.3 million during the March 2026 quarter.

Segment Performance: Capital SMART Remains a Key Contributor

The Capital SMART segment continued to provide a consistent contribution during the quarter. Revenue and earnings remained stable, supported by disciplined cost management and steady insurer volumes.

The segment maintained margin performance in line with expectations and continued to deliver a consistent EBITDA contribution. Year-to-date EBITDA for Capital SMART reached AUD 37.3 million, reflecting its role as a key component of the group’s overall earnings profile.

AMA Collision: Revenue Growth with Margin Focus

The AMA Collision segment reported revenue growth during the quarter, supported by improved throughput and ongoing network optimisation.

While EBITDA margins were softer earlier in the period, the company indicated that process improvements implemented during the quarter are expected to support margin expansion in subsequent periods. These initiatives are aimed at enhancing operational efficiency and improving profitability over time.

Wales Segment: Stable Performance with Regional Variations

The Wales segment delivered a steady performance, with both revenue and EBITDA contributing to group results during the quarter.

The business continued to focus on operational discipline and diversification of customer revenue streams to offset lower volumes in certain regions. Some areas have shown early signs of volume improvement, which the company expects to continue into the fourth quarter of FY26.

Specialist Businesses Show Noticeable Improvement

The Specialist Businesses segment recorded an improvement in EBITDA during the quarter. This was supported by higher utilisation rates and increased internal demand, particularly for advanced driver assistance systems (ADAS) calibration services.

Prestige repair volumes also strengthened, driven by relationships with original equipment manufacturers (OEMs) and insurer referrals. In addition, the mechanical segment continued to expand its capabilities, contributing positively to overall group performance.

ACM Parts Maintains Positive EBITDA

The ACM Parts segment continued to generate positive EBITDA during the quarter, reflecting consistent performance across its operations.

The segment benefited from activity in recycled, parallel, and aftermarket parts, along with consumables. Ongoing investment in inventory management and digital sales channels contributed to improved customer access and margins.

The company also noted that the restructuring of its Queensland operations is underway, which is expected to further enhance performance. Continued focus on supply chain efficiency and sustainability initiatives remains a priority.

Operational Metrics and Activity Levels

Across the broader business, operational indicators reflected relatively stable activity levels during the quarter.

Collision repair volumes reached 61.8 thousand jobs in Q3 FY26, compared to 61.3 thousand in Q3 FY25. The average repair price was recorded at AUD 3,918, slightly lower than AUD 3,881 in the prior period.

Labour metrics remained stable, with average headcount at 3,539 and apprentices numbering 443 at the end of the quarter.

Safety performance, measured by the lost time injury frequency rate (LTIFR), was recorded at 4.23 for Q3 FY26, compared to 2.72 in Q3 FY25.

Capital Management and Share Buyback Plan

During the quarter, AMA Group indicated its intention to implement a share buyback program. The decision reflects the Board’s view that current market conditions present a capital management opportunity.

The company noted that its balance sheet remains conservative, providing flexibility to undertake such initiatives while continuing to support operational priorities.

FY26 Outlook Maintained

AMA Group reaffirmed its FY26 guidance, with expected normalised EBITDA (pre-AASB 16) in the range of AUD 70 million to AUD 75 million.

The company expects performance to be supported by its traditionally stronger fourth quarter, along with continued operational improvements, cost discipline, and investments in technology and capability.

The outlook assumes that repair volumes remain stable and are not materially impacted by broader geopolitical developments.

What This Means for Investors?

AMA Group’s Q3 FY26 update reflects a combination of stable revenue growth and operational progress across several segments. While quarterly EBITDA declined compared to the prior corresponding period, year-to-date performance improved, and multiple business units showed signs of ongoing development.

The reaffirmation of FY26 guidance, alongside operational initiatives and a planned share buyback, appears to align with the positive share price movement observed on 22 April 2026.

Investors may continue to monitor how the company executes on its operational improvements and whether the expected uplift in the fourth quarter materialises.