Peter Warren Posts $22.3M Underlying Profit, Cuts Debt by $14M in FY25

A Year of Two Halves

Peter Warren Automotive Holdings Limited (ASX, PWR) closed FY25 with a solid financial performance marked by a tale of two halves. The first half of the year saw pressures from declining new car margins and profitability challenges across several brands. However, decisive management actions on inventory control, cost reduction, and portfolio optimisation reversed the trend, resulting in a doubling of underlying profit before tax from $7.1 million in H1 to $15.2 million in H2.

Chairman John Ingram highlighted the company’s agility in responding to market headwinds, crediting the leadership team’s swift initiatives and the appointment of Andrew Doyle as CEO in October 2024 for the turnaround. Doyle’s early focus on operational discipline and culture change has been pivotal in driving momentum into FY26.

Financial Strength and Strategic Positioning

Despite a decline in industry-wide new car volumes, Peter Warren Automotive delivered total revenue just shy of $2.5 billion, slightly ahead of the prior year. The company’s underlying profit before tax of $22.3 million aligned with guidance, supported by a $14 million reduction in net debt to $47 million. This deleveraging was underpinned by a robust property portfolio valued at $229 million, providing a strong balance sheet foundation for future growth.

The company’s strategic approach includes expanding its brand portfolio with emerging Chinese marques such as Geely, MG, GWM, and Omoda Jaecoo, which now represent around 20% of its brand mix. This diversification complements long-standing partnerships with legacy OEMs like Toyota, Mazda, and Mercedes-Benz, balancing innovation with established market presence.

Innovation and Customer-Centric Growth

CEO Andrew Doyle emphasised the company’s commitment to innovation, including trials of automation and artificial intelligence in sales and service operations. These technologies aim to streamline processes and enhance customer engagement, a critical factor in driving retention and revenue growth.

Growth in higher-margin revenue streams was a standout feature of FY25, with used vehicle sales up 14%, alongside gains in service, parts, finance, and insurance. Cost control measures yielded nearly $5 million in savings in the second half, including a 4% reduction in headcount compared to the previous year, reflecting a leaner, more efficient operation.

Looking Ahead

Peter Warren Automotive enters FY26 with confidence, underpinned by a clear strategy focused on innovation, customer experience, organic growth, and selective acquisitions. The company’s strong property-backed balance sheet and disciplined operational execution position it well to capitalise on accelerating industry consolidation.

The board declared a fully franked final dividend of 4.0 cents per share, signalling ongoing commitment to shareholder returns. Meanwhile, the planned retirement of CFO Victor Cuthell in June 2026 is being managed with a smooth transition in mind, ensuring continuity in financial leadership.