AMA Group Limited (ASX: AMA) reversed losses with a statutory profit of AUD 7.7 million in FY26, driven by revenue growth and operational improvements across key segments. The company declared a fully franked dividend, its first since 2019, and outlined a positive outlook for FY27.
- FY26 revenue rises 2.5% to AUD 1.039 billion
- Statutory profit after tax of AUD 7.7 million
- Normalised EBITDA pre-AASB 16 up 8.6% to AUD 68 million
- First fully franked dividend declared since 2019 at 0.5 cents per share
- Climate-related governance and risk management enhanced in FY26
Profit Turnaround and Dividend Declaration
AMA Group Limited (ASX:AMA), Australia's largest vehicle collision repair network, has swung to a statutory profit after tax of AUD 7.7 million for the financial year ended 30 June 2026, a sharp turnaround from a loss of AUD 6.2 million in FY25. This improvement was underpinned by a 2.5% increase in revenue to AUD 1.039 billion and an 8.6% rise in normalised EBITDA (pre-AASB 16) to AUD 68 million.
Reflecting its improved financial position and cash flow generation, the Board declared a fully franked final dividend of 0.5 cents per share; the first dividend payment since 2019; rewarding shareholders after several years of reinvestment and restructuring.
Segment Performance Highlights
The Group’s diversified business model showed mixed but generally positive momentum across its key segments. Capital SMART, specialising in drivable repairs, maintained revenue at AUD 490.7 million and delivered a normalised EBITDA margin of 10.6%, despite a decline in available repair volumes partly attributed to geopolitical tensions affecting road use and claim volumes in the final quarter.
AMA Collision, which handles more complex and non-drivable repairs, posted revenue growth of AUD 19.6 million to AUD 379.7 million and a notable EBITDA increase of AUD 3.2 million. The segment continues to optimise its network footprint and embed best-practice operational models to improve margins and profitability.
Wales Heavy Vehicle Repair faced headwinds with a 1.5% revenue decline to AUD 76.7 million and a 27% EBITDA drop, influenced by reduced claim volumes and deferred non-urgent repairs, particularly in NSW and WA. However, the business anticipates a rebound in large-scale repairs over the next 12 months, supported by new revenue streams in non-traditional repairs and new energy heavy vehicles.
Specialist Businesses, encompassing prestige vehicle repairs, mechanical collision repairs, and ADAS calibration, saw strong growth with revenue up AUD 9.3 million to AUD 65.6 million and EBITDA more than tripling to AUD 5.6 million. Expansion of mechanical and ADAS services is expected to continue driving profitability.
ACM Parts, the Group’s automotive parts and consumables distributor, significantly improved its EBITDA by AUD 7 million to AUD 2.3 million through operational efficiencies, network optimisation, and growth in recycled and aftermarket parts sales, despite a slight revenue dip.
Capital Management and Balance Sheet Strength
The Group’s net debt stood at AUD 18.4 million, marginally higher than the prior year, supported by disciplined capital management including a $15 million repayment of revolving debt facilities and ongoing investment of AUD 30.4 million in site expansions, equipment, and technology. An on-market share buy-back program was initiated in May 2026, signaling Board confidence in the Group’s strategy and balance sheet.
Operating cash flow after lease payments was AUD 32.8 million, down from AUD 44.1 million in FY25, primarily due to increased income tax payments as the Capital SMART tax consolidated group commenced paying income tax after utilising prior losses.
Leadership and Governance Updates
The year saw Board refreshment with the appointment of Anthony Clark, an insurance industry veteran, strengthening the Group’s expertise in motor vehicle insurance and heavy transport sectors. The Board remains chaired by Brian Austin, with Ray Smith-Roberts serving as Managing Director since April 2025.
AMA Group has advanced its climate governance framework, integrating climate-related risks and opportunities (CRROs) into enterprise risk management. The Board and Audit & Risk Committee oversee these matters, with formal climate-related disclosures aligned to Australian Sustainability Reporting Standard AASB S2. The Group reported FY26 Scope 1 and 2 greenhouse gas emissions of 21,826 tCO2-e and conducted qualitative climate scenario analysis assessing resilience under both lower and higher warming pathways.
Outlook and Strategic Priorities
For FY27, AMA Group projects normalised pre-AASB 16 EBITDA in the range of AUD 75 million to AUD 80 million, aiming to progress toward a 10% EBITDA margin within three years by leveraging its vertically integrated structure. Capital SMART is expected to maintain a strong EBITDA margin between 10% and 11%, with initiatives to expand customer base and service lines.
AMA Collision plans continued operational improvements and network optimisation to enhance margins and profitability. Wales anticipates recovery with increased large-scale repairs and growth in new revenue streams. Specialist Businesses expect further growth, particularly in mechanical and ADAS services, while ACM Parts aims to build on its improved profitability.
The Group continues to invest in workforce capability, technology including AI tools, and sustainability initiatives to meet evolving vehicle technologies and insurer expectations, underpinning its competitive advantage.
Climate Risks and Opportunities Embedded in Strategy
AMA Group has formally incorporated climate-related risks and opportunities into its governance and risk management frameworks. The Group identified three principal climate risks; physical disruption from extreme weather, regulatory changes, and shifting consumer preferences toward new energy vehicles (NEVs) and shared mobility; and two key opportunities in NEV repair capability investment and insurer demand for sustainable practices.
While FY26 did not see material financial impacts from climate risks, the Group invested AUD 0.85 million in climate-related capital expenditure, including specialised equipment for NEV and ADAS vehicle repairs and energy efficiency upgrades such as LED lighting and solar installations. AMA Group’s climate scenario analysis indicates its strategy and business model are resilient across plausible lower and higher warming futures.
AMA Group plans to enhance its climate scenario analysis and data capabilities in FY27, with no formal climate-related performance targets or remuneration metrics established as of FY26.
What to Watch
Investors should monitor AMA’s execution on its NEV and ADAS repair capability expansion, the sustainability of its dividend program, and progress in embedding climate risk management into strategic and operational decisions. The Group’s ability to navigate evolving insurer relationships and regulatory landscapes, while maintaining operational excellence and margin growth, will be critical as vehicle technology and market dynamics evolve.
Meanwhile, the impact of geopolitical tensions on repair volumes and the anticipated recovery in Wales’ heavy vehicle segment will be key near-term indicators of operational resilience.
Bottom Line?
AMA Group’s FY26 profit turnaround and dividend resumption mark a milestone, but its future hinges on navigating evolving vehicle technologies, insurer expectations, and climate risks with disciplined execution.
Questions in the middle?
- How effectively will AMA Group scale its NEV and ADAS repair capabilities to capture emerging market demand?
- Can the Group sustain dividend payments amid potential volatility in repair volumes and operating costs?
- How will AMA Group’s climate risk management evolve to translate scenario analysis into actionable strategic decisions?