MotorCycle Holdings Limited delivered a standout FY2025 with double-digit revenue and profit growth, underpinned by strong market share gains and operational efficiencies.
- 11.6% revenue increase to $650 million
- 27.7% surge in net profit after tax
- 76.3% reduction in net debt strengthens balance sheet
- Market share in new vehicle sales rises to 16.6%
- Robust growth in wholesale distribution and eCommerce
Strong Financial Performance
MotorCycle Holdings Limited (ASX, MTO) has reported a robust set of financial results for FY2025, showcasing significant growth across key metrics. Revenue climbed 11.6% to $650 million, driven by both retail and wholesale channels. EBITDA increased by 12.8%, while net profit after tax surged 27.7% to $18 million, reflecting improved operational discipline and cost management.
The company’s ability to reduce net debt by a remarkable 76.3% to $9 million has fortified its balance sheet, providing a solid foundation for future growth initiatives. This deleveraging was complemented by a reduction in inventory levels, signalling enhanced capital efficiency and inventory management.
Market Leadership and Sales Momentum
MotorCycle Holdings has strengthened its position as the market leader in Australasia’s motorcycle retail and distribution sector. The company’s share of the new vehicle market rose to 16.6%, up from 15.5% the previous year, supported by record unit sales in both new and used motorcycles. Total new vehicle unit sales grew by 7.9%, while used vehicle sales also hit record levels, underscoring the company’s diversified revenue streams.
Wholesale distribution revenue surged 25%, reflecting strong demand and effective expansion strategies. The company’s footprint spans 55 locations across Australia and New Zealand, representing leading motorcycle brands including Harley Davidson and CFMOTO, which remain core to its growth strategy.
Digital Transformation and Operational Efficiency
MotorCycle Holdings is actively investing in digital and data transformation to enhance customer experience and operational efficiency. ECommerce sales grew by an impressive 59%, driven by increased digital engagement and an omni-channel sales model that integrates showroom and online platforms. These initiatives are expected to continue driving organic growth and improve margins.
Operational improvements are also evident in the company’s gross profit margin, which expanded to 25%, supported by higher retail sales volume and strong wholesale performance. The company’s focus on process discipline and inventory optimisation is delivering tangible benefits in capital management and return on invested capital.
Outlook and Growth Drivers
Looking ahead to FY2026, MotorCycle Holdings plans to build on its momentum through operational excellence and strategic acquisitions, including Peter Stevens and Harley-Heaven. The company aims to increase stock turns, expand used vehicle sales, and further develop its omni-channel capabilities. Early unaudited results for FY2026 indicate continued growth in revenue, gross profit, and market share, reinforcing confidence in the company’s growth trajectory.
With a strong capital base, low gearing, and a clear strategy focused on market leadership and digital innovation, MotorCycle Holdings appears well-positioned to navigate the evolving automotive retail landscape in Australasia.
Bottom Line?
MotorCycle Holdings’ FY2025 results set a high bar, but sustaining growth will hinge on execution of digital initiatives and integration of recent acquisitions.
Questions in the middle?
- How will MotorCycle Holdings sustain its market share gains amid increasing competition?
- What impact will the Peter Stevens and Harley-Heaven acquisitions have on long-term profitability?
- Can the company maintain its strong eCommerce growth while managing inventory efficiently?