How Did AMA Group Boost EBITDA 38% While Slashing Debt to $17.7M?
AMA Group Limited reported a robust FY25 with revenue climbing 8.6% to over $1 billion and a 38.4% jump in normalised EBITDA, while significantly reducing net debt following a major equity raise and debt refinancing.
- Revenue increased 8.6% to $1.014 billion
- Normalised EBITDA rose 38.4% to $62.6 million
- Statutory net loss narrowed slightly to $6.2 million
- Net debt cut sharply to $17.7 million after $125 million equity raise
- Board explores divestment options for ACM Parts business
Strong Financial Turnaround
AMA Group Limited (ASX, AMA) has delivered a marked improvement in its FY25 financial results, showcasing operational resilience and strategic focus. The company’s revenue rose 8.6% year-on-year to $1.014 billion, driven by pricing uplifts and increased repair volumes. More notably, normalised EBITDA surged 38.4% to $62.6 million, reflecting enhanced efficiency and cost discipline across its core collision repair businesses.
Despite these gains, AMA Group recorded a statutory net loss after tax of $6.2 million, a slight improvement from the prior year’s $6.8 million loss. The loss reflects ongoing investments in growth and operational optimisation, as well as one-off legal settlement costs.
Balance Sheet Strengthened
The Group’s balance sheet has been significantly strengthened following a $125 million equity raise in August 2024, which was used to repay debt and improve liquidity. This recapitalisation, combined with a refinancing of senior debt facilities extending maturities to February 2028, enabled AMA Group to reduce net debt from $143.9 million to $17.7 million by June 2025. Improved operating cash flow, up 78.1% to $75.8 million, further supports the Group’s financial flexibility.
Operational Highlights and Strategic Focus
AMA Group’s operational segments all contributed to the positive momentum. Capital SMART, the Group’s rapid repair business, outperformed expectations with a $10.9 million EBITDA uplift, benefiting from improved site efficiency and an updated Motor Repair Service Agreement with insurer Suncorp. AMA Collision showed signs of turnaround in the second half of FY25, supported by a transitional change program and strategic acquisitions such as Hondat Smash Repairs on the Gold Coast.
The Wales heavy vehicle repair business continued to deliver strong results, boosted by site expansions and the acquisition of Bodyline Crash Repairs in Darwin, enhancing national fleet support. Specialist Businesses, including prestige vehicle repairs and ADAS calibration services, expanded their footprint despite some volume allocation challenges.
The Board remains focused on divesting the ACM Parts business to concentrate on core collision repair operations, although no sale has yet been finalised. The ACM Parts segment showed sales growth but faced margin pressures due to high reclaimed parts prices.
ESG and Workforce Development
AMA Group’s FY25 Annual Report highlights its commitment to environmental, social, and governance (ESG) principles. The Group promotes sustainability through vehicle life extension, parts reclamation, and waste reduction initiatives. Socially, AMA Group invests in workforce diversity, apprenticeship programs, and leadership development, aiming to build a skilled and inclusive team of over 3,600 employees.
Governance practices remain robust, with a focus on risk management, compliance, and transparent remuneration aligned with performance. The Board welcomed new leadership with Ray Smith-Roberts appointed Group Managing Director in April 2025, signaling a disciplined approach to operational excellence and growth.
Outlook
Looking ahead, AMA Group expects FY26 normalised EBITDA to reach between $70 million and $75 million, supported by ongoing operational improvements and a reset balance sheet. The company is well-positioned to capitalise on stable vehicle usage trends, insurance market dynamics, and its broad geographic network across Australia and New Zealand.
Bottom Line?
AMA Group’s FY25 results mark a pivotal step in its turnaround journey, but the path to sustained profitability hinges on strategic execution and the fate of ACM Parts.
Questions in the middle?
- What timeline and valuation can investors expect for the divestment of ACM Parts?
- How will AMA Group sustain EBITDA growth amid evolving insurance industry dynamics?
- What impact will emerging vehicle technologies and ESG initiatives have on operational costs and margins?
