How Turners Automotive Group Achieved Record Profit and Dividend Growth in FY25

• Net profit after tax up 17% to $38.6 million
• Dividend increased 14% to 29.0 cents per share, marking a decade of growth
• Growth in Finance, Insurance, and Credit Management offsets Auto Retail softness
• On track to meet $65 million NPBT target by FY28
• Board re-elected Grant Baker and elected Todd Hunter as directors

Record Financial Performance Amid Economic Challenges

Turners Automotive Group has capped off a decade of consistent growth with a record financial result for the fiscal year 2025. Despite operating in a tough New Zealand economic environment marked by subdued consumer confidence and restrictive interest rates, the company delivered a 17% increase in net profit after tax to $38.6 million. This robust performance was complemented by a 14% rise in dividends to 29.0 cents per share, continuing a steady upward trajectory that began in FY15.

Diversified Earnings Drive Resilience

The company’s diversified business model proved its strength once again. While the Auto Retail segment faced headwinds due to softer vehicle prices and market conditions in the first half, gains in Finance, Insurance, and Credit Management segments more than compensated. Notably, the Finance division returned to growth, with a 5% book increase in the first four months of FY26 and improved credit quality metrics. Insurance operations expanded their motor vehicle portfolio by 25% over FY24, supported by a new digital sales platform and strategic partnerships. Credit Management also saw strong growth, benefiting from rising arrears amid tightening economic conditions.

Strategic Growth Initiatives and Branch Expansion

Turners is actively investing in growth opportunities, including a rebranding of its servicing division to Turners Servicing and Repairs, aiming to leverage brand equity and drive mobile servicing awareness. The company is expanding its physical footprint with multiple new and upgraded branches across New Zealand, including completed sites in Tauranga, Invercargill, and Christchurch, and plans for further locations such as Manukau and Tauranga Greerton. These expansions are expected to contribute additional profits and support the company’s medium-term target of $65 million net profit before tax by FY28, a milestone the company is on track to achieve ahead of schedule.

Strong Corporate Governance and Shareholder Alignment

Governance remains a cornerstone of Turners’ strategy, with significant insider ownership; approximately 30% of shares held by directors and 53% employee participation; aligning interests closely with shareholders. At the 2025 Annual Shareholders Meeting, Grant Baker was re-elected as chairman, and Todd Hunter, the Group CEO and Managing Director, was elected to the board, reinforcing leadership continuity. The company also reappointed Baker Tilly Staples Rodway as auditor, ensuring consistent oversight.

Outlook and Market Position

Looking ahead, Turners anticipates a slowly recovering economy in FY26 with further profit growth expected. The company expects the new marketing campaign and branch expansions to bolster vehicle margins and volumes in the second half of the year. While economic conditions remain patchy, Turners’ scale, trusted brand, and diversified operations position it well to navigate ongoing challenges and capitalize on emerging opportunities in New Zealand’s automotive and finance sectors.

Bottom Line?

Turners’ record FY25 results and strategic investments set the stage for sustained growth, but economic headwinds warrant close monitoring.

Questions in the middle?

• How will Turners’ new servicing division impact profitability in the medium term?
• What risks could arise from the ongoing economic uncertainty affecting consumer demand?
• How will Turners balance branch expansion costs with expected returns amid fluctuating market conditions?