Turners Automotive Group Delivers Record Profit and Expands Branch Network

Record Profit Propels Turners Ahead of Targets

Turners Automotive Group (ASX:TRA) has accelerated its profit trajectory, delivering a normalised net profit before tax (NPBT) of $63.2 million for the year ended 31 March 2026, a 16% increase on the previous year. This result surpasses prior guidance and positions the company to hit its $65 million NPBT target a year early, in FY27. The milestone marks the third consecutive multi-year target Turners has beaten ahead of schedule, underscoring the strength of its integrated automotive ecosystem.

Robust Growth Across Core Divisions

Revenue climbed 9% to $451.2 million, driven by gains in Auto Retail, Finance, and Insurance. Auto Retail remains the largest revenue contributor, with $315.3 million, supported by a 10% revenue lift and a 12% increase in segment profit. The division’s resilience was evident in a flat overall volume but a 9% rise in owned units sold, thanks to strategic focus on lower-priced vehicles and tighter inventory management.

Oxford Finance’s loan book expanded 27% to $566 million, fueled by a 50% increase in new consumer lending. Remarkably, this growth came alongside tightened credit standards, with consumer arrears at 2.5%, well below the industry average of 5.6%. The Finance division’s margin expanded, aided by a $200 million public securitisation warehouse term out in October 2025, reducing funding costs and capital commitment.

Autosure Insurance posted a 6% revenue increase to $50.2 million and a 7% rise in segment profit. Growth was bolstered by new digital distribution partnerships and the launch of a Mechanical Breakdown Insurance product targeting private vehicle sales. Claims cost inflation was well managed, keeping loss ratios stable.

Branch Expansion Validates Growth Strategy

Turners opened three new branches in Christchurch during FY26, which quickly ramped up to full operational capacity. The expansion translated into a 15% increase in sourcing leads and a 22% jump in locally sourced units sold in the region, validating the economics of Turners’ national network build-out. The company plans to open four new branches and two replacement branches in FY28, with FY27 focused on groundwork and preparation.

The company’s integrated model extends beyond sales, with Turners Servicing & Repairs rebranded and expanding its mobile mechanic network. This division, still in its early commercial phase, completed 14,000 bookings in FY26 and aims to capture a meaningful share of a $3 billion market.

Goodwill Impairment Flags Strategic Shift

Turners recognised a $7.5 million non-cash goodwill impairment related to its EC Credit business, reflecting its non-core status within the automotive ecosystem. The credit management division faced revenue declines and profit drops due to constrained referral volumes and tougher consumer conditions. The Group is positioning EC Credit for potential divestment over the medium term.

Strong Balance Sheet and Capital Management

Total assets rose to $1.07 billion, driven by a $119 million increase in finance receivables and a $35 million investment in property, plant, and equipment. Shareholders’ equity increased to $318 million. The Board declared a final dividend of 9.0 cents per share, fully imputed, bringing the full-year dividend to 33.0 cents, a 14% increase and a 10.5% compound annual growth rate over 12 years. The dividend reinvestment plan was applied to the final payout.

Turners maintains a disciplined capital allocation framework anchored to a 15% return on equity target. The securitisation warehouse and new syndicated banking facilities provide a robust funding platform to support growth ambitions through FY31.

Governance, Culture, and Sustainability Highlights

The Group’s Board comprises seven directors, blending independent and non-independent members, led by non-executive Chairman Grant Baker and CEO Todd Hunter. Governance practices align with NZX standards, with active oversight of risk management and sustainability.

Employee engagement remains strong, with 67% of the 700-strong workforce shareholders through the Employee Share Scheme. The company ranks in the top 5% globally for consumer business engagement and maintains a low turnover rate of 17%. Turners continues to invest in leadership development and wellbeing initiatives.

On sustainability, Turners supports New Zealand’s transition to a lower-emission vehicle fleet. Sales of electric and hybrid vehicles rose to 14.2% of total light vehicle sales, up from 11.9% the prior year. The company is also reducing operational emissions and promoting low-emission vehicles within its fleet.

Geopolitical Headwinds and Resilience

Late March 2026 saw the onset of the Iran-US conflict, which dampened consumer demand and subdued April trading in Auto Retail. Turners has deployed the same operational playbook used successfully in previous downturns, focusing on cost control, selective inventory buying, and credit quality.

Finance and Insurance, as annuity businesses, continue to provide stability amid market fluctuations, underscoring the value of Turners’ diversified model.

Looking ahead, Turners is targeting $100 million NPBT by FY31, building on its decade-long strategic execution and ecosystem integration. The company’s expansion plans, capital management, and product innovation set the stage for sustained growth in a challenging market environment.