AMA Group Posts $20.1M EBITDA in 1Q26, Up 36% Year-on-Year

Strong Earnings Growth Amid Operational Challenges

AMA Group Limited has delivered a notable 36.3% increase in its unaudited pre-AASB 16 EBITDA for the first quarter of FY26, reaching $20.1 million compared to $14.8 million in the same period last year. This growth underscores the company’s ability to enhance profitability despite facing headwinds from lower repair volumes and system interruptions.

However, operating cash flow painted a more nuanced picture, with a $3.1 million outflow recorded for the quarter. This was primarily due to $8.7 million in delayed receipts caused by processing delays, which were subsequently collected in early October, suggesting temporary disruptions rather than structural cash flow issues.

Mixed Operational Performance Across Segments

The Capital SMART division experienced a challenging quarter with repair volumes declining, particularly in Victoria, although this was partially offset by a higher severity and complexity of work. The business expanded its footprint by opening a third site in South Australia at Wingfield, signaling ongoing investment in regional growth.

AMA Collision showed significant improvement in financial performance, driven by optimisation efforts and capability enhancements. Despite volume pressures in some Victorian sites, the division opened a new greenfield site in Bundaberg, reflecting confidence in future growth prospects.

Conversely, the Wales heavy vehicle repair segment faced softness due to fewer large crash repairs and broader cost-of-living pressures, particularly in Western Australia, Victoria, and New South Wales. The company is actively exploring additional opportunities with insurers and fleet operators to counteract these challenges.

Specialist and Parts Businesses Show Positive Momentum

The Specialist Businesses segment, including Prestige sites, benefited from improved productivity that outweighed volume softness in Victoria. Meanwhile, ACM Parts continued to improve its underlying performance through initiatives focused on optimising reclaimed parts and expanding consumables sales, although further work remains to fully realise these gains.

Outlook and Strategic Focus

AMA Group reaffirmed its FY26 guidance, expecting normalised pre-AASB 16 EBITDA to fall within the $70 million to $75 million range. The company’s strategic priorities remain centered on network optimisation, enhancing vehicle repair and staff capabilities, and improving customer experience, particularly at existing sites.

While volume declines, especially in Victoria, present ongoing challenges, the company’s operational improvements and new site expansions suggest a balanced approach to growth and efficiency. Investors will be watching closely to see how these initiatives translate into sustained financial performance in the coming quarters.