Turners Automotive Group Boosts FY25 Profit Forecast to NZ$53M Amid Market Resilience
Turners Automotive Group has raised its FY25 profit guidance to at least NZ$53 million, marking its fifth consecutive record profit despite challenging economic conditions.
- FY25 profit guidance upgraded to NZ$53M, 8% above FY24 results
- Fifth consecutive record profit for Turners Automotive Group
- Strong Q3 trading with improved vehicle margins and falling interest rates
- All four business divisions expected to outperform 2H24 results
- Company targets NZ$65M net profit before tax by FY28
Turners Defies Economic Headwinds with Upgraded Profit Guidance
Turners Automotive Group Limited (NZX/ASX: TRA) has announced an upward revision to its FY25 profit guidance, now expecting a net profit before tax of at least NZ$53 million. This represents an 8% increase over the NZ$49.1 million achieved in FY24 and surpasses the company’s previous forecast of exceeding NZ$50 million. The upgrade marks the fifth consecutive year of record profits for the diversified automotive and financial services group.
Resilience Through Diversification and Strategic Focus
Despite a challenging economic backdrop, Turners’ diversified business model has proven resilient. The company’s four core divisions, Auto Retail, Finance, Insurance, and Credit Management, are all expected to deliver stronger second-half results compared to the same period last year. Improved vehicle margins and a decline in interest rates during Q3 have contributed significantly to this positive momentum.
CEO Todd Hunter highlighted the company’s ability to grow through the cycle, attributing success to a clear strategy and customer-centric approach. "We are pleased to surpass our FY25 profit target of $50M, despite the current economic challenges," Hunter said. "Our wider team at Turners continue to do an outstanding job, and importantly, this gives us strong momentum as the team focuses on our next target of $65M by FY28."
Outlook and Market Implications
Turners’ consistent profit upgrades and record results underscore its operational strength and adaptability in a sector often sensitive to economic fluctuations. The company’s integrated financial services model, primarily focused on the automotive sector in New Zealand, appears well-positioned to capitalize on improving market conditions.
Investors will be keenly awaiting the full-year results due in late May, which will provide further clarity on the sustainability of this growth trajectory. The company’s ambitious target of NZ$65 million net profit before tax by FY28 sets a clear benchmark for future performance and strategic execution.
Bottom Line?
Turners’ upgraded guidance signals robust growth momentum, but sustaining this trajectory amid economic uncertainties remains the key challenge ahead.
Questions in the middle?
- How sustainable is Turners’ profit growth given ongoing economic headwinds?
- What specific strategies will Turners deploy to reach its NZ$65M profit target by FY28?
- How will changes in interest rates and vehicle market dynamics impact Turners’ diversified divisions?
