• Delivering organic growth in high-margin areas like used cars, service, parts and F&I
• Successful acquisition of Wakeling Automotive to drive 20% revenue growth
• Expanding partnerships with Chinese automotive brands amid strong market share growth

Peter Warren Automotive Holdings Limited (ASX: PWR) reported a solid H1 FY26 performance, with underlying PBT increasing by $5.4 million to $12.5 million. Revenue grew by 3.2% to $1,268.5 million, driven by organic growth in used cars (+$30.4 million), service and parts (+$6.6 million), and F&I (+$2.1 million). Gross profit margin remained stable at 16.2%, reflecting the company's focus on high-margin revenue streams. Operating expenses increased by 2.4% but were contained to 11.9% of revenue through cost control initiatives. The company also announced the acquisition of Wakeling Automotive, which is expected to drive a 20% increase in FY26 revenue. Peter Warren continues to expand its partnerships with Chinese automotive brands, which now account for 16.9% of the market. The company's strong balance sheet, with net debt of $61.5 million and a 27% net debt to property value ratio, provides capacity for further M&A opportunities in the fragmented automotive retail industry.

Peter Warren expects to continue delivering strong earnings growth, driven by organic initiatives in high-margin business areas, the successful integration of the Wakeling Automotive acquisition, and ongoing expansion of its Chinese brand partnerships. The company has not provided specific financial guidance for FY26.

Peter Warren is focused on further strengthening its customer-centric culture, innovating to enhance the customer experience, and leveraging AI and digitisation to drive operational efficiency. The company expects to continue growing earnings through its diversified business model, disciplined inventory and cost management, and active M&A strategy in the large and fragmented automotive retail market.