Turners Automotive Group (TRA) H1 2025 earnings summary

Executive summary

• Achieved record half-year profit before tax of $26.9m, up 5% year-over-year, with stable and consistent earnings despite challenging macroeconomic conditions, supported by a diversified business model.

• Earnings composition shifted: auto retail profits declined while finance and insurance profits increased; used car pricing stabilized and volumes remained resilient, but new car demand was weak.

• High employee engagement and share ownership, with strong third-party endorsement for the brand campaign and recognition in the Deloitte Top 200 Company of the Year category.

• Net profit from continuing operations rose 4% to $19.3m, with net tangible assets per share increasing to $1.53.

• 2H25 trading expected to strengthen across all divisions, with ongoing branch expansion and margin recovery.

Financial highlights

• Revenue declined 2% year-over-year to $209.0m, but EBIT rose 3% to $31.0m and NPBT increased 5% to $26.9m; NPAT was $19.3m, up 4%.

• Earnings per share were 21.8 cps, up 2%; interim/quarterly dividend of $0.07 per share declared, with total dividends projected at least $0.27 per share for the year.

• Gross yield on shares estimated at 8.3% based on a $4.50 share price; dividend payout ratio maintained at 60-70% of NPAT.

• Shareholders' equity at $287.7m as of 30 Sept 2024; total assets reached $875.5m.

• Operating cash flow improved to $26.9m from $14.6m in the prior period.

Outlook and guidance

• Guidance reaffirmed to exceed $50m profit before tax for the full year, with another record full-year profit expected.

• Expecting improved trading conditions as interest rates drop over the next 6–9 months and continued branch expansion in Christchurch, Tauranga, and Napier.

• Auto Retail: Focus on new sites, wholesale-to-retail transition, and stabilizing vehicle pricing.

• Finance: Credit discipline, origination growth, and improved net interest margin prioritized.

• Insurance: Stable earned premium and claims ratios, with new distribution and direct sales expected to contribute.