Peter Warren Reports 3.2% Revenue Rise and 106% Profit Surge in H1 FY26

Strong Financial Performance Amid Competitive Market

Peter Warren Automotive Holdings Limited (ASX: PWR) has delivered a robust first half for FY26, reporting a 3.2% increase in revenue to $1.268 billion and a striking 106.3% rise in profit after tax to $7.435 million. This performance underscores the group's resilience and strategic positioning in a highly competitive Australian automotive retail market.

The company’s growth was primarily fuelled by stronger used car sales, complemented by steady gains in service, parts, finance, and insurance revenues. Despite ongoing competition from new entrants in the new vehicle segment, Peter Warren maintained stable gross margins at 16.2%, reflecting effective pricing and a focus on higher-margin service lines.

Operational Discipline and Inventory Management

Operating expenses rose modestly by 2.4%, driven by a 3.5% increase in labour costs and strategic investments in staffing and advertising to support revenue growth. Notably, the group successfully reduced new vehicle inventory by $50 million over the past 18 months, lowering interest expenses and demonstrating disciplined inventory management in a capital-intensive sector.

Peter Warren’s diverse brand portfolio, spanning over 80 franchise operations and more than 30 original equipment manufacturers (OEMs), positions it well to capture market share across volume, prestige, and luxury segments. The group has also expanded its footprint in the growing Chinese automotive brand segment, now representing nearly 17% of the new vehicle market, with relationships established with seven of the top eight best-selling Chinese brands.

Strategic Acquisition and Leadership Transition

In a significant strategic move, Peter Warren announced the acquisition of Wakeling Automotive, a large multi-franchise dealership group operating in the Macarthur region and surrounding areas in New South Wales. The acquisition will be funded through existing debt facilities, reflecting confidence in the group’s balance sheet and growth prospects.

On the leadership front, the company confirmed the retirement of Chief Financial Officer Victor Cuthell, effective October 2025, with Anna Bail appointed as his successor from March 2026. This transition signals continuity and fresh stewardship as the group navigates its next growth phase.

Dividend and Outlook

Reflecting its strong cash flow and profitability, the board declared a fully franked interim dividend of 3.0 cents per share, up from 1.6 cents in the prior corresponding period. This increase will likely be welcomed by income-focused investors seeking stable returns in the automotive retail sector.

While the company did not provide explicit forward guidance, the combination of solid financial results, strategic acquisitions, and operational discipline suggests a positive outlook. However, the evolving competitive landscape, especially with new brand entrants and market share shifts, will require ongoing agility.