• Overall softening demand during H1 FY26 in Tyre Wholesale and increased investment in new growth initiatives
• Reported revenue down 10.9% to $53.5m, but EBITDA up 8.0% to $2.5m
• Challenging trading conditions in tyre divisions, slower than expected return on investment from tyre recycling

RPM Automotive Group Ltd (ASX: RPM) has reported its H1 FY26 results, which showed a mixed performance. The company's reported revenue declined 10.9% year-on-year to $53.5 million, primarily due to softer demand in the tyre wholesale division and the impact of discontinued operations. Gross profit decreased 11.6% to $18.5 million, with gross margin declining slightly to 34.5%. However, the company was able to improve its EBITDA performance, with reported EBITDA increasing 8.0% to $2.5 million and EBITDA margin expanding from 3.9% to 4.7%. This was driven by cost management initiatives, though the company's net profit before tax declined from $1.7 million in the prior corresponding period to a loss of $1.1 million. RPM noted that the tyre divisions experienced challenging trading conditions, particularly in Victoria, and the return on investment from its tyre recycling initiatives has been slower than expected. The company remains committed to unlocking value from these strategic initiatives in the medium to long-term. RPM's balance sheet remains in a solid position, with net debt of $28.0 million and the necessary funding to cover working capital requirements and further organic growth. The company is focused on stabilising divisional profitability, improving cash generation, and reducing gearing levels in the second half of FY26.

RPM Automotive Group Ltd has not provided any high-importance, price-sensitive forward-looking financial metrics in its H1 FY26 results announcement.

RPM Automotive Group Ltd is focused on stabilising divisional profitability, particularly in the Wholesale & Retail Tyres divisions, in H2 FY26. The company continues to pursue ways to unlock value across the Tyre business and is actively investing in new strategic initiatives to drive growth in the medium to long term, such as forward integration of tyre collections and recycling, as well as geographic and product range expansion. The company also remains committed to divesting non-core assets as a Board priority.