MotorCycle Holdings Posts 27.7% Profit Surge and $650M Revenue Record in FY25

Strong Financial Performance Amid Market Headwinds

MotorCycle Holdings Limited (ASX – MTO) has delivered an impressive set of financial results for the 2025 fiscal year, defying broader motorcycle market challenges. The company reported record sales revenue of $650 million, marking an 11.6% increase over the prior year, driven entirely by organic growth. This performance was underpinned by disciplined sales strategies and improved inventory management, which also contributed to a 27.7% jump in net profit to $18 million and a 12.8% rise in EBITDA to $51 million.

Operational efficiencies were evident as inventory levels fell by 4.4%, signaling better stock turnover and reduced aging. The company’s strong cash flow enabled it to repay $10 million of bank debt and reduce net debt by nearly $29 million, reinforcing a solid balance sheet poised for future expansion.

Market Leadership and Strategic Expansion

MotorCycle Holdings maintained its leadership position in the Australian and New Zealand markets, capturing 16.6% of new vehicle sales in 2025, up from 15.5% the previous year. The company also remains the top used vehicle retailer, with used vehicle sales increasing 4.4% to a record 10,565 units.

Significantly, the recent acquisition of Peter Stevens Motorcycles and Harley-Heaven has expanded the company’s footprint into South Australia and Western Australia, boosting its market share to 22%. These acquisitions not only add scale but also bring valuable brand equity, digital assets, and experienced management teams, positioning MotorCycle Holdings for accelerated growth.

Diversification and Digital Transformation

The company is evolving beyond traditional internal combustion engine motorcycles by expanding into electric mobility, including electric scooters, motorcycles, and all-terrain vehicles. Additionally, the introduction of Sea-Doo jetskis broadens its product portfolio, reflecting a strategic shift toward a comprehensive on- and off-road vehicle retailer.

Wholesale revenue surged 25% to $195.6 million, driven by a 31% increase in vehicle sales and a 10% rise in parts and accessories. Meanwhile, eCommerce sales have seen significant growth, fueled by enhanced digital engagement and an omni-channel sales model supported by a network of 55 dealerships. This digital transformation is expected to further reduce customer acquisition costs and improve retention over the coming years.

Challenges and Forward Outlook

Despite the strong results, MotorCycle Holdings disclosed a voluntary provision related to potential duty underpayments on parts and accessories, with the exact amount yet to be determined. The company has taken immediate steps to improve compliance systems and is working closely with State Revenue Offices to resolve the matter.

Looking ahead to 2026, the company is focused on operational excellence, cost discipline, and leveraging its strengthened balance sheet to support growth initiatives. Key priorities include optimizing retail property returns, increasing stock turns, expanding used vehicle sales, and integrating recent acquisitions. Early unaudited figures for FY26 indicate continued organic growth and positive contributions from Peter Stevens and Harley-Heaven, reinforcing confidence in sustained outperformance.

MotorCycle Holdings’ strategic partnerships with leading brands such as Harley Davidson, Yamaha, Honda, and CFMOTO remain central to its growth strategy, particularly as Australia emerges as a significant market for off-road vehicles globally.