MotorCycle Holdings Limited has reported record half-year revenue and profit for HY2026, driven by organic growth and the acquisition of Peter Stevens and Harley-Heaven. The company also reduced net debt and increased its interim dividend, signalling strong financial health and market positioning.
- Record HY2026 sales revenue up 20.9% to $396.4 million
- Underlying net profit after tax rose 28.7% to $12.1 million
- Market share increased to nearly 20% following PSHH acquisition
- Net debt reduced by 32.2% to $6.1 million
- Interim dividend increased by 18.8% to 9.5 cents per share
Strong Financial Performance Amid Market Stability
MotorCycle Holdings Limited (ASX:MTO) has delivered a robust financial performance for the half year ended 31 December 2025, posting record revenue and profit figures that underscore its growing dominance in the motorcycle retail and distribution sector. The company’s sales revenue surged 20.9% to $396.4 million, while underlying net profit after tax climbed 28.7% to $12.1 million, reflecting both organic growth and the strategic acquisition of Peter Stevens and Harley-Heaven (PSHH).
Despite a flat overall motorcycle market, MotorCycle Holdings expanded its market share from 16.6% to 19.8%, a notable achievement that highlights the effectiveness of its growth strategy. New vehicle retail sales increased by 22.3% to nearly 10,000 units, complemented by a 12.5% rise in used vehicle sales, signalling strong consumer demand across segments.
Acquisition Boosts National Footprint and Product Range
The acquisition of select assets from PSHH, completed in late July 2025, has been a key driver of the company’s enhanced market position. This move not only broadened MotorCycle Holdings’ national footprint but also strengthened relationships with original equipment manufacturers (OEMs) and introduced new product categories. On an annualised basis, this acquisition is expected to push the company’s market share beyond 20%, reinforcing its leadership in the Australian and New Zealand markets.
CEO Matthew Wiesner emphasised that the integration of PSHH assets aligns with the company’s strategic objectives, enabling it to capture new growth opportunities while maintaining operational efficiency.
Financial Discipline and Shareholder Returns
Alongside growth, MotorCycle Holdings demonstrated financial discipline by reducing net debt by 32.2% to $6.1 million. This deleveraging was achieved while simultaneously funding the PSHH acquisition and increasing shareholder returns. The board declared a fully franked interim dividend of 9.5 cents per share, up 18.8% from the previous year, reflecting confidence in the company’s cash flow and profitability.
Underlying earnings per share rose from 12.8 cents to 16.4 cents, underscoring the company’s ability to convert sales growth into shareholder value. The company’s strong cash generation capacity remains a cornerstone of its capital allocation strategy.
Regulatory Provision and Outlook
MotorCycle Holdings also disclosed a $5 million provision related to an underpayment of vehicle registration duty on optional equipment sold with vehicles. This provision, including interest, has been accounted for in the balance sheet and opening retained earnings, reflecting prudent financial management amid regulatory scrutiny.
Looking ahead, the company is focused on several initiatives to sustain momentum: accelerating digital transformation to enhance sales and customer experience; concentrating on core brands such as CFMOTO and Harley Davidson; optimizing property assets; increasing stock turnover; and expanding used motorcycle sales. Additional contributions from the PSHH acquisition are also expected to bolster performance throughout FY2026.
Bottom Line?
MotorCycle Holdings’ HY2026 results set a strong foundation, but investors will watch closely how digital initiatives and regulatory matters unfold.
Questions in the middle?
- How will MotorCycle Holdings manage integration risks and synergies from the PSHH acquisition?
- What impact might the vehicle registration duty provision have on future earnings or cash flow?
- Can the company sustain growth in a flat overall motorcycle market through digital transformation and brand focus?