AMA Group Limited reported a robust 21.9% rise in pre-AASB 16 Normalised EBITDA to $30.5 million for the first half of FY26, driven by revenue growth and operational improvements across key segments. The company is targeting a 10% EBITDA margin in its core vehicle collision repair business within the next 3-4 years.
- 1H26 revenue up 6% to $524.1 million
- Pre-AASB 16 Normalised EBITDA increased 21.9% to $30.5 million
- Operating cash flow improved 16.2% to $12.2 million
- AMA Collision shows significant financial turnaround
- FY26 EBITDA guidance set at $70-75 million with 10% margin target
Strong Half-Year Performance
AMA Group Limited has delivered a solid financial performance in the first half of fiscal 2026, with revenue rising 6% to $524.1 million and pre-AASB 16 Normalised EBITDA climbing 21.9% to $30.5 million compared to the prior corresponding period. This growth reflects the company’s ongoing efforts to optimise operations and enhance profitability across its diversified vehicle collision repair and parts supply businesses.
Operating cash flow also improved markedly, increasing by 16.2% to $12.2 million, underscoring stronger cash generation amid a higher severity and complexity of repairs. The group’s net debt position improved to $20.7 million, down from $25.6 million at the end of the previous financial year, providing a solid balance sheet foundation for continued investment and growth.
Segment Highlights and Operational Progress
The Capital SMART division, while experiencing a slight dip in EBITDA to $24.0 million, remains in line with expectations despite a small reduction in repair volumes. The segment continues to expand its footprint with three new sites opened in South Australia, New South Wales, and Tasmania, targeting areas with strong demand and underrepresentation.
AMA Collision has been a standout performer, showing a significant turnaround with EBITDA increasing by $8.1 million to $6.1 million. The ongoing transitional change program and network optimisation initiatives have driven improved operational capability and stronger insurer relationships, positioning the business well for further volume growth.
Wales Heavy Vehicle faced softer demand for large crash repairs in the first half, impacting EBITDA by $1.6 million. However, management expects a recovery in the second half of FY26 as work volumes normalise and new opportunities with insurers and fleet operators are pursued.
Specialist businesses, including the Prestige network and TechRight calibrations, reported improved financial performance, with EBITDA rising to $2.0 million. ACM Parts also contributed positively, with EBITDA up $1.4 million to $0.7 million, driven by operational improvements and growth in consumables sales.
Strategic Outlook and Growth Ambitions
Looking ahead, AMA Group is targeting a pre-AASB 16 EBITDA margin of 10% within its core vehicle collision repair businesses over the next three to four years. The company plans to continue pursuing strategic growth opportunities where capability, capacity, and market demand align, including greenfield expansions, brownfield developments, and acquisitions.
The group aims to increase weekly repair volumes to 5,000, up from an average of 4,773 in 1H26, supported by ongoing network optimisation and capability enhancements. Investment in people and safety remains a priority, with a focus on attracting and developing high-performing teams to sustain operational improvements.
For the full fiscal year 2026, AMA Group expects normalised pre-AASB 16 EBITDA to be in the range of $70 million to $75 million, reflecting confidence in its growth trajectory and operational execution.
Bottom Line?
AMA Group’s half-year results signal a turning point, but execution on network optimisation and growth targets will be critical to sustaining momentum.
Questions in the middle?
- How will AMA manage the planned site closures while pursuing network expansion?
- What impact will insurance market dynamics have on repair volumes and pricing?
- Can AMA sustain margin improvements amid rising costs and competitive pressures?