Can Autosports Group Sustain Momentum Amid Acquisition and Market Risks?
Autosports Group Limited reports record FY25 revenue and profit, while announcing a strategic acquisition of 10 Barry Bourke Motors dealerships in Victoria, signaling robust growth momentum into FY26.
- Record FY25 revenue of $2.865 billion and normalised NPBT of $47.1 million
- Agreement to acquire 10 Barry Bourke Motors dealerships for approximately $34 million
- Strong H1 FY26 trading update with expected NPBT growth of 73-78% over prior year
- Expansion of premium property portfolio including new Gold Coast and Canberra sites
- Board renewal with new Chair Peter O’Connell appointed in 2025
Record Financial Performance Amid Market Challenges
Autosports Group Limited (ASX – ASG), Australia's sole ASX-listed luxury automotive retailer, has delivered a robust financial performance for FY25 despite a challenging market environment. The company reported record revenue of $2.865 billion, driven by strategic acquisitions and organic growth. Normalised net profit before tax (NPBT) reached $47.1 million, reflecting resilience through a difficult first half followed by a strong second half as market conditions improved.
The luxury automotive sector faced headwinds including high inventory levels and elevated interest rates in the first half of FY25, but easing conditions and rate cuts in the latter half supported a rebound. Autosports Group’s diversified portfolio, spanning new and used vehicle sales, finance, service, parts, and collision repair, underpinned this recovery.
Strategic Acquisitions Fuel Growth
Central to Autosports Group’s growth strategy is its ability to execute accretive acquisitions. The FY25 financials benefited from the acquisition of Stillwell Motor Group, which contributed $241 million in revenue over nine months. Building on this momentum, the company recently announced an agreement to acquire 10 dealerships from Barry Bourke Motors in Victoria for approximately $34 million. This acquisition includes key luxury brands such as Jaguar Land Rover, Audi, Volvo Cars, and Geely, expanding Autosports Group’s footprint in Melbourne metropolitan markets.
The Barry Bourke acquisition is expected to settle in December 2025, subject to OEM approvals, and is forecast to be immediately earnings per share (EPS) accretive. Margins are anticipated to improve through the second half of FY26, aligning with Autosports Group’s operational standards by FY27.
Expanding Premium Property Portfolio
Autosports Group continues to invest in premium real estate to support its dealership network and long-term growth. Recent property acquisitions include an 8,785 square metre site in Southport on the Gold Coast, earmarked for a purpose-built Mercedes-Benz facility, and an 8,088 square metre site in Phillip, Canberra, intended to consolidate Mercedes-Benz operations in a strategic automotive hub.
The company’s owned property portfolio now stands at an estimated value of $257.75 million, providing both capital appreciation and operational stability. These developments underscore Autosports Group’s commitment to sustainable, high-quality infrastructure, incorporating features such as rooftop solar and water harvesting at its new Volkswagen McGregor facility in Brisbane.
Positive Outlook and Board Renewal
Looking ahead, Autosports Group is well-positioned for continued growth. The company’s H1 FY26 trading update highlights a 17.5% increase in new and used vehicle order write compared to the prior corresponding period, outperforming both the total and luxury vehicle markets. The luxury segment itself has grown by 8.2% year-to-date, outpacing the broader market’s 3.1% growth.
Autosports Group expects normalised NPBT for H1 FY26 to be in the range of $35-36 million, representing a 73-78% improvement over H1 FY25. This performance is supported by organic growth, greenfield site openings such as Polestar on the Gold Coast, and the integration of recent acquisitions.
The company also marked a leadership transition with Peter O’Connell appointed as Chair in May 2025, succeeding James Evans. O’Connell’s stewardship is anticipated to guide Autosports Group through its next growth phase, leveraging strong OEM partnerships and a disciplined acquisition strategy.
Bottom Line?
Autosports Group’s strategic acquisitions and property investments set the stage for accelerated growth, but successful integration and market conditions will be key to sustaining momentum.
Questions in the middle?
- How will the integration of Barry Bourke Motors dealerships impact Autosports Group’s operational efficiency and margins?
- What are the potential risks if OEM approvals for the Barry Bourke acquisition are delayed or withheld?
- How will Autosports Group balance capital expenditure on property development with its acquisition-driven growth strategy?