• Underlying profit before tax of $22.3m, in line with guidance
• Stronger second half performance due to return of seasonality and cost-out program
• Expanding Chinese-brand dealerships, pursuing opportunistic acquisitions

Peter Warren Automotive Holdings Limited (ASX: PWR) has announced its financial results for the full year ended 30 June 2025, delivering underlying profit before tax (PBT) of $22.3m in line with updated guidance provided on 23 July 2025. The result reflects a decline in the new car market, which was mitigated by the company's performance in other departments. The much stronger second half performance was due to a return of some typical seasonality and the benefits of the Group's previously disclosed cost-out program and disciplined inventory management. Sales revenue was up 0.3%, with industry-wide sales of new vehicles reducing in FY25, however the company mitigated this with acquisitions and by driving organic growth in used cars, service, parts, finance and insurance. Gross margins stabilised at 16.1% in both the first and second halves compared to 16.9% for FY24. The year-on-year decline largely reflected lower industry-wide margins in new cars, which was partially mitigated by optimising the higher margins in other revenue streams. The company managed its portfolio of brands well, adding new entrants to its existing sites and growing from two Chinese-brand dealerships in FY24 to nine in FY25. It will further build on this to reach at least 14 Chinese-brand locations in FY26. The Group also benefited from a Macarthur, NSW acquisition in March 2024 and from other acquisitions in June and July of 2024. The company is well placed to act as a consolidator of dealerships, although it will be very disciplined in its approach to further acquisitions with a focus on brands, geography, synergies, sustainable earnings and shareholder returns.

In FY26 the company expects to grow higher margin service lines in parts, service, finance, insurance and aftermarket. As it continues to manage its costs and inventory, it expects to grow its earnings in FY26.

The company's business foundations include $229m in owned property, low net debt of $46.7m and a great team of professionals with deep automotive experience. It will execute its strategy, focusing on innovation as a key enabler of its long-term competitiveness, living its customer-centric culture, driving best in class operational performance, while continuing to pursue opportunistic acquisitions. The new car market is expected to remain highly competitive with new brands competing for market share.