Turners Automotive Group Posts Strong FY25 Earnings with 17% Net Income Growth

Turners Automotive Group reported a flat FY 2025 revenue of NZ$414.2m, but a 17% increase in net income to NZ$38.6m, resulting in a profit margin of 9.3%. The company's EPS also rose to NZ$0.43, beating analyst estimates by 4.3%. The shares are up 1.6% from last week.

Turners Automotive Group (NZSE: TRA) reported its full-year 2025 results, showing a flat revenue of NZ$414.2 million compared to the previous fiscal year, but a significant improvement in net income and profitability. The company's net income increased by 17% to NZ$38.6 million, resulting in a profit margin of 9.3%, up from 7.9% in FY 2024. The earnings per share (EPS) also rose to NZ$0.43, surpassing analyst estimates by 4.3%. The company's shares are up 1.6% from a week ago [2].

Key highlights from the report include:

1. Revenue Performance: The company reported a flat revenue of NZ$414.2 million for FY 2025, which was in line with expectations and matched the previous year's revenue.
2. Profitability: Net income increased by 17% to NZ$38.6 million, driven by improved operational efficiency and cost management. The profit margin of 9.3% indicates a strong financial performance.
3. EPS Growth: The EPS increased to NZ$0.43, which was 4.3% higher than analyst estimates. This growth reflects the company's ability to generate more earnings per share.
4. Market Reaction: The company's shares are up 1.6% from last week, indicating investor confidence in the reported results and the company's outlook.

Looking ahead, the company expects revenue to grow at an average rate of 8.5% per annum over the next three years, compared to a 5.1% growth forecast for the Specialty Retail industry in Oceania [2].

Despite these positive results, investors should be aware of the potential risks. The company faces two warning signs that should be considered. However, one of the warning signs is particularly concerning and should not be ignored [2].

In conclusion, Turners Automotive Group's FY 2025 results demonstrate a strong performance in terms of profitability and earnings growth, despite a flat revenue. The company's outlook for future growth is promising, but investors should remain vigilant about the identified risks.

References:
[1] https://finance.yahoo.com/news/als-ltd-cpblf-fy-2025-070112290.html
[2] https://finance.yahoo.com/news/turners-automotive-group-full-2025-192330342.html