AMA Group Limited

AMA Group reported first-half FY '26 revenue of $524.1 million, up $29.6 million or 6% year over year, and normalized pre-AASB 16 EBITDA of $30.5 million, up $5.5 million or 21.9%. EBITDA margin improved from 5.0% to 5.8%, while operating cash flow after lease costs was $12.2 million, up $1.7 million or 16.2%. Core vehicle collision repair revenue rose 6.6% to $503.5 million, and net debt was $20.7 million at 31 December 2025 versus $17.7 million at 30 June 2025. For the full year, management reaffirmed FY '26 normalized pre-AASB 16 EBITDA guidance of $70 million to $75 million and said CapEx is still expected to be $40 million, with positive free cash flow still expected if that level is spent.

Raymond Smith-Roberts emphasized that the company is making steady progress toward a 10% pre-AASB 16 EBITDA margin in its core collision business, a target he said he expects within 3 to 4 years but believes could come sooner. He highlighted better volumes in many regions, improved performance in Collision and Specialist, and the first positive EBITDA contribution from ACM Parts. His tone was constructive and confident, but he acknowledged some drag from new site openings and weaker conditions in Wales and Victoria.

Domenic Romanelli said the main financial story was higher revenue, better EBITDA, and improved margin, supported by a $1.5 million reduction in finance costs overall. He noted finance costs other fell $3.7 million after the February 2025 debt refinancing, partly offset by a $2.2 million increase in lease finance costs from higher rents and rates. He also pointed to $15.3 million of CapEx payments in the half, up $5.6 million year over year, mostly for greenfield sites, replacement equipment, and site expansions, and said the balance sheet remains strong with covenant compliance expected to continue.

Analysts focused mainly on volumes and capital spending. Management said first-half average repairs were 4,772 per week versus a 5,000 target, but volumes were improving and February SMART volumes were on track for the highest average per day of the year; they also said Wales remains softer but should normalize over the next 12 months. On CapEx, management kept the full-year forecast at $40 million and said they still expect positive free cash flow, while noting second-half spend should be a bit slower as site expansions and rationalizations progress.