Amotiv (AOV) H1 2025 earnings summary

Executive summary

• Revenue grew 2.3% to $503.7m, driven by acquisitions, but organic revenue declined 3% due to headwinds in NZ, Caravan/RV, and APG Top 20 markets.

• Underlying EBITDA increased 2.6% to $114.9m, slightly ahead of revenue, reflecting disciplined cost management and operational efficiencies.

• Net profit after tax fell 34.3% to $33.0m, impacted by $9.4m impairment of the Fully Equipped NZ business and $1.0m in other brand impairments.

• Continued investment in growth, including new manufacturing in South Africa and expansion in the U.S., supported by a strong capital position and updated capital allocation framework.

• Well positioned for a stronger H2, with new business wins, pricing actions, and operational initiatives expected to drive improvement.

Financial highlights

• Group revenue up 2.3% to $503.7m; organic revenue down 3%; PU up 5.8%, LPE up 3.6%, 4WD down 1.9%.

• Underlying EBITDA up 2.6% to $114.9m; underlying EBITA at $97.0m, down 1% due to ongoing investment.

• Gross margin declined 75bps to 44.0% due to higher freight and adverse mix; gross profit up 5%.

• Cash conversion at 76.5%, impacted by one-off working capital factors; would be over 87% excluding these.

• Interim dividend of 18.5 cents per share, fully franked, maintained year-over-year.

Outlook and guidance

• Growth in group revenue and underlying EBITA/EBITDA expected for FY25, with a stronger H2 skew.

• Supported by new business wins, product launches, pricing actions, and benefits from restructuring and Amotiv Unified.

• Cash conversion for FY25 expected around 85%, with a strong balance sheet and leverage supporting planned growth.

• Company remains well positioned to fund organic growth and consider bolt-on acquisitions, with $203.2m in unused borrowing facilities and no debt maturing in the next 12 months.