THE comprehensive guide to the financial performance of Australia’s listed automotive retailers show revenue growth continues to rise despite domestic and global economic issues, while profits also increased.

The Pitcher Partners ‘Australian Listed Dealer Comparison’ for calendar year 2025 reports that Eagers Automotive (ASX: APE), Autosports Group (ASX: ASG), and Peter Warren Automotive Holdings (ASX: PWR) all saw revenue growth in 2025, up 16.5 per cent, 12.7 per cent, and 0.8 per cent respectively. Average inventory days decreased across the groups, with APE recording 65.5 days (from 69.7 days previously); ASG at 82 days (from 82.8) and PWR at 77.9 (from 79.5).

The report said that revenue growth was experienced across the board and translated to Net Profit Before Tax (NPBT) as a percentage of revenue continued to either stabilise (APE) or fall modestly. 

• APE generated 3.0 per cent (unchanged)
• ASG recorded 1.9 per cent (down YOY from 2.0 per cent)
• PWR at 1.0 per cent (down YOY from 1.1 per cent). 

Pitcher Partners said that “while inventory has been prioritised and reduced, the two interest rate increases early in 2026 and the forecast of further increases, the cost of carrying stock remains a key challenge in CY26.”

Steve Bragg

It said that CY25 had been another record-breaking year for new-vehicle sales, building on the momentum of CY24, closing at 1,241,037 units sold, a 0.3 per cent increase on CY24 according to VFACTS.

The sales number was also just under the 1,241,396 unit estimate lodged earlier in the year by Pitcher Partners.

The breakdown of the year was a decrease in new-car sales in the first half of CY25 of 1.3 per cent YOY, and then an increase in the second half of 2.1 per cent.

“As operating conditions reach cyclical lows, dealerships are being pushed back to fundamentals,” Pitcher Partners said in the report.

“Disciplined cost control improved operational efficiency, and a sharper focus on higher margin departments are becoming critical in a challenging market.

Wayne Pearson

“Front-end gross margins remain compressed due to elevated competition while expenses continue to rise, with floorplan costs, advertising, employee compensation, and rent all increasing.

“In response, dealerships are increasingly reliant on back-end departments to offset margin pressure and protect profitability.”

The report said that since December 2025, the Australian economy has been impacted by a range of macroeconomic pressures, including two interest rate increases; inflation of 4-5 per cent that has remained above the RBA’s target range; and an escalation of geopolitical conflict in the Middle East.“The RBA has lifted the cash rate by a cumulative 0.5 per cent (0.25 per cent in February and March) to 4.1 per cent, with CBA analysts forecasting a further increase to 4.35 per cent in May and rates remaining elevated through to 2027.

“These conditions are driving higher borrowing costs and reducing household disposable income, creating a more challenging operating environment for the motor industry.”

Pitcher Partners said that this was before the impacts of the conflict in the Middle East are fully realised “as markets face the possibility of a protracted conflict in the region and inflated oil prices that follow”.

Despite the prevailing market headwinds, Pitcher Partners said it is now forecasting new-vehicle sales in CY26 of 1.25 million units as a result of cumulative increases in population growth.Listed results: selected summary

Revenue growth 

Despite economic challenges, all three listed dealer groups (PWR, APE, and ASG) reported revenue growth, with a combined revenue increase of $2.21B AUD YOY, moving from $16.37B to $18.58B AUD, or up 13.5 per cent. This indicates  that while profitability stays under pressure, demand remains strong. Revenue growth is in part driven by the realisation of full year impacts from prior period acquisitions. 

Cost management focus 

With the industry experiencing sustained margin pressure, attention has well and truly turned towards managing operating expenses. All three of the listed Australian dealer businesses included sections and metrics relating to the focus on cutting operating costs attempting to maintain bottom line margins. Sustained focus on cutting operational costs and higher margin back-end offerings offer the opportunity to maintain margins in areas not  exposed to external OEM pressures. 

Return of the back end 

As front-end margin headwinds continue a renewed focus has been placed on reducing the reliance on brand exposed income streams, with businesses seeking to prioritise higher margin aftermarket income streams. Through comparison of the front and back-end revenue streams of these three groups over the past three years, it is evident that growth in back-end revenue streams is outpacing front-end growth. 

From the period of 2022 to 2025, ASG and  PWR’s back-end income grew by 62.8 per cent  and 35.7 per cent respectively while their front-end income grew by only 45.9 per cent and 30.4 per cent. However, APE’s front-end income grew by 55.3 per cent primarily due to their joint venture with BYD, with their back-end income growing 40.1 per cent. 

The not so good 

New cars sustained margin pressure and increased competition 

Entering CY25, Australia’s listed dealer groups continue to face sustained margin pressure despite stable revenues, reflecting structurally weaker industry economics. 

In the most recent period, APE, ASG and PWR all reported lower NPBT margins (3.0 per cent , 2.0 per cent and 1.1 per cent respectively), driven by compressed front end gross margins and higher fixed costs as vehicle supply normalised. 

These pressures have persisted into CY25 as heightened competition particularly from rapidly growing Chinese brands now accounting for ~20 per cent  of new vehicle sales have intensified price led competition and discounting. This is also reflected in the industry gross profit benchmark for new vehicles moving from 9-11 per cent  to 9-10 per cent, reflecting margin pressures occurring industry wide. 

Continued increases in finance costs  

In 2024, the average interest expense was $98.2 million. This figure rose to $102.6 million in 2025 (up 4.5 per cent YOY), reflecting an increase of $4.4 million. 

As was experienced in 2024 the higher interest burden in 2025 is eroding profit, however to the credit of the listed dealers, this impact has been lessened by successful management of  inventory to avoid excessive stocking and the floorplan interest costs associated. This will likely be a significant area of focus in 2026 with two interest rate hikes already experienced in March and February, with further increases  expected. 

The interesting 

Growing pains for Chinese brands 

In the space of five years Chinese import sales have increased from 3.3 per cent of the market in December 2020 to  18.3 per cent  of sales in December 2025. For the first time in Australian automotive history, China was the number one source of vehicles sold in Australia, representing 12.6 per cent of vehicles sold in the month of February 2026. 

The meteoric rise in Chinese OEMs in Australia and the issues associated with growing pains include: 

• The rapid growth experienced by Chinese brands in Australia has left OEMs scrambling to establish after-sale infrastructure to provide parts and service for a rapidly expanding fleet. 
• New owners of Chinese made vehicles are reporting issues with servicing their new vehicles or acquiring replacement parts, with some owners reporting repair timelines stretching over six months. 

Fuel shortages paired with NVES stoke EV demand 

Contacts within the automotive market have revealed that post the escalation of conflict in the Middle East and the resultant drastic increases in fuel prices, EV enquiries have ballooned. Dealers offering EVs have communicated that they are experiencing double to triple the number of enquiries they typically receive. 

Post-December economic conditions 

A range of macro-economic impacts have affected the Australian economy post December 2025 including two interest rate hikes, sustained above target inflation (4 per cent  5 per cent ) and expansion of geopolitical conflict in the Middle East. 

Since December, the RBA has raised the cash rate by 0.5 per cent  (0.25 per cent  Feb, 0.25 per cent March) to 4.1 per cent with CBA analysts predicting a further increase to 4.35 per cent  in May and sustained elevation until 2027. 

This leads to higher borrowing costs and less disposable income available to Australians, generating unfavourable conditions for the motor industry. 

Further, geopolitical tensions between the USA and Middle East have starkly risen in 2026, remaining a key catalyst to Australia’s current macroeconomic conditions. 

Emanating from this issue is the highly apparent increase in fuel prices with petrol sitting around 256c per litre (up from 183c in early January) and diesel around 311c per litre as of late March 2026 (185c in early Jan). This has led to a substantial increase in EV enquiries within the market as consumers seek to avoid inflated fuel prices. 

Additional commentary 

The head of Pearson Automotive Consulting, Wayne Pearson, said the report “highlights where the industry can head financially and the opportunity for profit growth that exists for the two smaller listed entities and, by extrapolation, the other privately owned groups in the industry”.

The stand-outs in the report, Mr Pearson said, were that Eagers (APE) was continuing to drive down its cost of delivery which “is clearly showing in the NPBT which is 50 per cent and 66 per cent higher than ASG and PWR”.

“Eagers’ cost of operations is about 40 per cent lower than its listed peers,” he said.

“This is not a gap, it’s a chasm. At its turnover, it puts hundreds of millions of dollars straight to the bottom line and this is the extra 1-3 per cent NPS that is ring-fencing APE’s result.”

Mr Pearson added that this cost benefit flows through to APE’s market value where it’s trading at twice the multiple of its peers.

“The market sees APE as different to the industry in general,” he said.

Mr Pearson also noted that goodwill is falling.

“In the voracious expansionary days of a COVID market, high profits and high appetites (and ability) made goodwill values peak,” he said.

“As the markets have normalised, this has clearly impacted values, making quality assets better priced and the ability to make these earnings accretive high when added into better structured operations.

“The only roadblocks now are a more aggressive and time-consuming stance from the ACCC and OEM market share limits … which could all be up for grabs with NVES.”

Mr Pearson said APE’s results “should give great heart to the smaller listeds and other larger groups”.

“APE is demonstrating in real time the path to future prosperity, to the point where it published its strategy for all its shareholders,” he said. 

“The ability to drive productivity of the industry’s two biggest costs – people and property – to create more gross per person and square metre, whilst eliminating non-gross generating costs through technology and outsourcing.

“This allows incremental revenue to be purchased or organically grown at 1 per cent NPS and drop out at 3 per cent NPS-plus which is incredibly accretive at a shareholder level.”

Mr Pearson said that “if I was at the helm of any of the larger privately-owned groups I would be clearly working on my version of this strategy or looking to combine with one of the larger groups already on the journey”.

“If you can sell into a group today at 1 per cent NPS and be part of the journey taking this to 3 per cent plus, the multiplier effect on your value is significant and the journey would be a lot of fun.”