AMA Group’s Turnaround Gains Momentum but ACM Parts Sale Remains Uncertain

• 3Q25 normalised EBITDA nearly doubled to $21.1 million, up 97.2% year-on-year
• Completed refinancing of debt facilities and redeemed $50 million convertible notes
• Operational turnaround in AMA Collision and strong performance from Capital SMART and Wales segments
• Acquisition of Hondat Smash Repairs expands Gold Coast presence
• FY25 normalised EBITDA guidance raised to $58-$62 million with a 10% margin target

Robust Financial Performance and Capital Restructure

AMA Group Limited (ASX: AMA) has delivered a standout third quarter for FY25, reporting an unaudited normalised EBITDA (pre-AASB 16) of $21.1 million, representing a 97.2% increase compared to the same period last year. This surge underscores the effectiveness of the Group's operational initiatives and financial discipline.

Crucially, AMA also completed a significant capital restructure during the quarter, refinancing its debt facilities for an additional three years and redeeming $50 million in convertible notes. This move not only strengthens the Group’s balance sheet but also provides greater financial flexibility to support growth and operational improvements.

Operational Highlights and Strategic Acquisitions

Operationally, the Group’s segments showed mixed but generally positive momentum. Capital SMART continued to outperform, benefiting from enhanced site efficiency, increased utilisation, and an expanded repair scope that lifted average repair prices. The reaffirmed Motor Repair Services Agreement with Suncorp further solidifies this segment’s growth trajectory.

AMA Collision, historically a challenging division, demonstrated encouraging signs of turnaround with improved financial results driven by a transitional change program. The Group’s focus on network optimisation, investment in repair capabilities, and customer experience is evident, particularly with the recent acquisition of Hondat Smash Repairs. This acquisition bolsters AMA’s footprint on the Gold Coast, enhancing capacity and accessibility in a key regional market.

The Wales segment also delivered strong results, with sites in Adelaide and Newcastle exceeding expectations and productivity bottlenecks addressed. Upgrades to the Western Australia site were completed, positioning the segment well for further optimisation and growth.

Specialist Businesses progressed its TechRight and TrackRight network expansions, opening new sites and completing transitions, although some Prestige locations underperformed. Management has flagged this as a priority area with initiatives underway to improve outcomes in the coming quarter.

Workforce Growth and Future Outlook

AMA’s workforce expanded modestly, closing 3Q25 with 460 apprentices and a total of 3,556 team members, reflecting ongoing investment in human capital to support operational demands and growth ambitions.

Looking ahead, the Group reaffirmed its FY25 guidance, expecting normalised EBITDA between $58 million and $62 million. The outlook is underpinned by anticipated outperformance in Capital SMART and Wales, a positive EBITDA contribution from AMA Collision for the full year, and continued focus on Specialist Businesses’ network growth and Prestige site performance.

The Board remains actively engaged in evaluating strategic options for ACM Parts, with a sale preferred but contingent on achieving break-even or better performance in the near term.

Bottom Line?

AMA Group’s strong 3Q25 results and capital restructure set the stage for disciplined growth, but the path to sustained margin expansion hinges on operational execution and strategic divestments.

Questions in the middle?

• What timeline and valuation can investors expect for the potential sale of ACM Parts?
• How will AMA address the underperformance in some Specialist Businesses’ Prestige sites?
• Can AMA sustain its EBITDA margin improvement amid ongoing network expansion and integration costs?