Welcome to the MotorCycle Holdings Limited FY 2025 Results Briefing Call. My name is Ann, and I will be your call coordinator. The format of the call includes prepared remarks from the company, followed by a question and answer session, at which point attendees will have an opportunity to ask questions live. Attendees are also welcome to submit questions in writing via the Ask a Question button found on the upper right of the Deal Roadshow. With us today are the team from MotorCycle Holdings, Matthew Wiesner, CEO, Nicole Spin k, CFO, and Michael Poynton, COO. At this time, I will turn the call over to Matthew Wiesner. You may now begin.
Thank you. Good afternoon, everybody, and thanks for joining us for the MTO FY 2025 inves tor presentation. To get things going, I would like to head straight to slide four of the presentation, which is the summary of our FY 2025 financial results. As you will see, the group's delivered a really strong set of numbers in FY 2025. Keeping in mind also that this year on year growth and performance was entirely organic. When you look at the revenue growth of over 11%, impact growth of over 27%, our new vehicle market share grew one over 1% in FY 2025 to 16.6%. We reduced our net debt by over 76% and delivered a full-year dividend growth of 30%.
All on the back of also reducing our overall inventory by about 4% or over 4% in conjunction with that strong revenue growth, which, as we discussed in the half-year announcement, was a commitment and a continued commitment to be really focused on improving our stock terms, aged inventory, to ensure we continue to drive a much stronger focus on investor capital in and across the organization. Now, to talk to the next two or three slides, I'd like to run through the key financial metrics. I'll hand over to Nicole to take us through them. Nick?
Yes. Thank you, Matthew. Good morning or afternoon, everybody. As Matthew had said, the financials this year we've included as an appendix at the back of the deck, slide 21. I'm not going to walk through that line by line because that's necessarily a fairly boring use of everyone's time, but they're there for you to refer to or ask questions in the Q&A section later on the presentation. FY 2025, 11.6% increase in our revenue, which is organic growth. None of the new acquisitions are included in that number. That's a slight basis. 25% increase in the wholesale segment and a 7% increase in the retail segment, which is pretty good. Profit after tax uplift of 27.7%. Our EBITDA grew 12.8%. The reason for the difference there is because, obviously, while our performance was better, depreciation and amortization remain constant year on year.
That sort of moderates that increase a little bit. Balance sheet metrics, even with our 11.6% growth in our revenue, we brought our inventory levels back by 4%, which is really a focus on capital management and improving our stock terms, which is what we're adding to some days. The cash generating capability of the business meant that we were able to reduce our net debt, which is debt offset by cash at bank, by 76.3%, which, you know, we aimed to do that at the start of the year, and I think we've delivered fairly well on that. Strength of the balance sheet, we repaid $10 million from the onto the bank facility.
We did hold some cash, obviously, in the bank at the end of the year because we had the Peter Stevens that settled sort of in the first 30 days, which is why there's some additional cash there. We've also increased our dividend for the full year up 30% to our 13% full-year dividend. Returning some, rewarding our shareholders on that. In terms of metrics, return on invested capital improved by 34%. That's driven firstly by, obviously, the increase in impact, but we did actually bring our working capital down by about 6% from 30th of June. That's, you know, that's where we're working towards doing some more in that in FY 2026. I hope that that number increases again. Return on equity of 22.5%, obviously, in line with earnings. Same EPS, 27% increase on our EPS.
We're really focusing on, you know, where we're putting our capital, investors' capital, for, you know, because we got a start on it last year, but I think it's going to do a bit more in FY 2026. That's the numbers bit. I'll now hand back to Matthew. Thank you.
Thanks, Nick. Slide eight, effectively a summary of some of the operational highlights of the year. As we said, strong growth in new and used volumes. Also, from a retail point of view, on the distribution side, wonderful performance from the CF MOTO brand and also its expansion into motorbikes, introduction of some EV product in the side-by-side four-wheeled space. Michael will talk more to that shortly, which therefore related to wonderful growth in our collective wholesale distribution businesses across the P&A and vehicle space in Australia and New Zealand. We are working on improving efficiencies. I spoke to this in the half-year announcements with some of the things that we identified there. We continue to do so across retail, especially retail where, obviously, most of our people and overheads are. We will continue to drive those outcomes. I'll talk more to that in a minute.
Inventory, obviously, key, especially not just in the amount, but more in regards to discipline, management of aging. We'll talk to that. Also, profit growth of 9%, margins remaining pretty steady across the board. Again, good growth in ecom. We've barely touched that. We've got a lot more to do there. Overall, our retail revenue growth of 7% in a relatively flat market was good. That's a reflection of our market share growth across the new and pre-owned used vehicle space through the year. Overall, again, a reflection of the numbers that we just took you through. On top of that, it is a good year, great improvement across the board. However, as far as we're concerned, we still have much to do.
I look at that and know in full well with some of the things we spoke about in the mid-year in regards to the restructuring work we were talking to and the areas of focus. Those bits of work have only recently been completed with some of the restructuring we did in our retail business, reorganizing of management and focus, especially in the areas of pre-owned and used bikes and setting up structure around that. We're now already starting to see some green shoots popping out of that, given it's only August. We're also about to kick off some significant focus in L&D, learning and development, with a program we're about to start next week, actually, in regards to further developing our retail leaders, dealer principals in regards to a more intensive business management process. Very focused on driving much better outcomes and productivity and efficiency out of our operations.
We're looking forward very much to what that will bring to the group as we're heading through FY 2026. To talk more about the FY 2025 operational performance, I'd like to hand over to Michael to run it through some of the key metrics there. Michael?
Right. Thanks, Matt. Good afternoon, everyone, and thank you for joining today's investor call. My name is Michael Poynton, and I'm the Chief Operating Officer at MotorCycle Holdings . Today, I'll be speaking to our strong FY 2025 operational performance. We'll kick off on slide number 11, track record of consistent revenue growth. A record revenue result of $650 million was achieved in FY 2025, up 11.6% on FY 2024. I'm pleased to report all business units posted revenue growth. Our retail business recorded revenue growth of 7%. I would like to point out again that this was organic growth, with no stores opened or acquired in FY 2025. Our three wholesale businesses, Mojo, Cassons, and Forbes and Davies in New Zealand, recorded total revenue of $243 million, achieving an impressive growth rate of 25%. All three of these businesses fired in FY 2025.
Cassons benefited from the addition of new brands and also greater operational efficiencies as a result of IT investments made in FY 2024. Mojo and Forbes and Davies continue to ride the growth wave with CF MOTO, with the brand continuing to go from strength to strength, also starting FY 2026 very strongly. CF MOTO 's recent entry into the two-wheel motorcycle segment continues to exceed our expectations. Our FY 2025 revenue growth in Australia from this segment was 93%, establishing CF MOTO very quickly as a major player. We'll now go to slide number 12, record market share and new vehicle unit sales. A record new vehicle sales of 15,637 units was achieved, representing growth of 7.9%. This growth was achieved in a flat market, increasing our market share to a record high of 16.6%.
With the Peter Stevens and Harley Heaven acquisition now complete, we anticipate our market share in FY 2026 to increase to over 20%. It is also worth calling out our new vehicle unit sales and the market share shown on these slides do not take into consideration the units that are wholesaled through Mojo. When these units are taken into consideration, our slice of the Australian motorcycle market is even greater. Slide number 13, record used vehicle unit sales. A total of 10,565 used vehicles were sold in FY 2025, representing growth of 4.4% over FY 2024. With a greater gross margin per unit versus new, used bikes continues to be an area of focus for the group. Our used to new ratio in FY 2025 was 0.67, and with recent changes to our used bike structure and our laser focus in this area, we are confident this ratio will further lift in FY 2026.
I will now hand back over to Matt to talk further on our FY 2026 outlook. Thank you.
Thanks, Mike. Slide 15 is just a few points regarding our outlook for FY 2026. As Mike pointed out, and as you picked up through the numbers previously, we'll certainly see some strengthening across som e key areas through the second half of the year. We are keen to drive, as mentioned previously, a higher ratio between new and used. We want to be doing and driving a greater volume of pre-owned bikes whilst we continue to grow market share with our new vehicle performance also. As a matter of fact, the second half of FY 2025, our new market share in the second half was actually over 17%, but the average was [16.6%]. The team are doing a wonderful job. We're seeing the, as I said before, the green shoots of that reorganisation of structure in our Motorcycle Holdings retail business starting to bear fruit, which is wonderful.
In addition to that, a few of the areas we highlighted in our service business are starting to flow through. We grew gross profit in our service business in FY 2025 by 11%. That was really by just highlighting some of the areas that we needed to be more efficient in, especially around overtime. Yet there are still some areas there that we see we can improve on to deliver a higher GP as a percentage. That will flow especially into the full year FY 2026. We're going to continue to maintain a significant emphasis on driving and identifying better efficiencies across the organization with just as discussed. As we pointed out, we really need to develop this business into a far more digital and data-led organization. We've spent a few months searching for the right person for that role.
I'm happy to report that our new Executive General Manager of digital and data transformation commenced with the group yesterday. She has a long list of wonderful opportunities. We are now in the process of planning where and what we'll be prioritizing as we head through FY 2026. Certainly, there are a number of wonderful opportunities as we dig into the volume of data we have to drive this business in a more efficient manner and also develop our CX, so our customer experience, our employee experience through our data digital capabilities. Obviously, driving and developing our ecommerce capabilities to ensure that we are always looking to drive better revenue outcomes through every channel that we have across the organization. We're looking forward also to further growth in our distribution world, especially in, absolutely in the vehicle space, as well as our parts and accessories space.
Favorable conditions in the agricultural space across the country hopefully mean that we'll continue to see strong performance in that area, as CF MOTO especially continued to deliver some wonderful product in the four-wheel and two-wheel space. We are obviously going to manage debt levels in the organization. That's a combination also of our wholesale involvement as we continue to focus on inventory levels and ensure that we are improving our return on invested capital in that space. With the recent acquisition of the Peter Stevens assets that we acquired, we look forward also to unlocking the opportunity that sits within those businesses that we've brought on board as we head through the remainder of FY 2026.
That's pretty exciting now as we head to slide 16, what that opportunity can start to deliver not only with the businesses that we specifically required, but now when you look at the footprint on slide 16 that we have, we now have a truly national footprint from a retail perspective. Obviously, a great opportunity to work even harder in our distribution businesses as we look to take advantage of that increased footprint. Having a stake in the ground in South Australia and Western Australia, which we haven't had before, becomes a wonderful opportunity to grow around and look at what other opportunities that will exist as we head through the year and beyond. It's a pretty decent house of brands that we have now.
We, across our wholesale distribution brands of Cassons, Mojo, and our various retail motorbike and vehicle brands with Team Moto, Ultimate, Morgan & Wacker, coming together with Peter Stevens, Harley Heaven, and Savage over in the West. Forbes and Davies is our distribution business in New Zealand, doing great things, had a very strong FY 2025, as we said, and looking forward to an even better 2026. At MCA, which is our parts and accessories retail brand, we have commenced the separation of it from our retail bike business to now give it the focus back within our Cassons operations for it to become a strong retail channel within our Cassons parts and distribution business to really drive and build a wonderful omnichannel, digitally led organization and retail channel to really drive better and more efficiently and grow our retail parts and accessories business as we work through FY 2026 and beyond.
Slide 17 gives you an idea of, obviously, the strong brand partners, wonderful brands that we have within the group, which has grown again given our acquisition of the Peter Stevens Group brands that we had done. Bringing the likes of Can-Am and Sea-Doo into the group will just further strengthen the business and further diversify the businesses as we head into watercraft, which will also bring other opportunities with it as customers look to, you know, look at other opportunities that they have in their leisure product and vehicle world. Slide 18, I'd like to hand to Michael to talk more about Peter Stevens as we head through the year as an update there. Given we've set Peter Stevens up and Harley Heaven up as a separate division within our organization, Michael is very close to it and to ensure that we get that momentum up and running.
Michael, over to you.
Thanks, Matt. As previously communicated to the market, we have now successfully settled on all seven Peter Stevens and Harley Heaven sites. These seven sites had performed a revenue of $144 million in FY 2024. This was a once-in-a-lifetime opportunity for our company, allowing us to cherry-pick strategic assets of our biggest competitor, who at the time was under voluntary administration. We will continue trading under the Peter Stevens, Harley Heaven, and Savage Motorcycles names, taking over two sites in New South Wales, one in Victoria, two in SA , and two in WA . Both WA and SA are new geographical retail locations for MotorCycle Holdings . As a result of this transaction, we have increased our total number of Harley-Davidson dealerships from eight to 12 and also established relationships with new OEMs, including Sea-Doo.
As I mentioned previously, with this acquisition now complete, we anticipate our FY 2026 market share to increase to over 20%. This transaction is expected to increase our retail revenue by 20% to 30% and will also deliver other group benefits, including further growth to our retail finance and wholesale businesses. We are confident this transaction represents exceptional value to our shareholders, and we look forward to providing a trading update and our half-year results. I'll hand back now to Matthew for his concluding summary before we open for some questions.
Thanks, Mike. Before we head to the Q&A, I'd just like to thank all MTO staff and management for their wonderful efforts in FY 2025. Also, at the same time, welcoming the 200+ people from within the Peter Stevens and Harley Heaven businesses that we acquired recently. We're really excited about having them on board and being part of what's going to be an exciting future over the years to come. Also, thank the board for their support through the year, which has been a fascinating year, and looking forward to the one ahead. Of course, to all of our shareholders for their support and focus and interest in the organization. Looking forward to that, obviously, continuing as we head into FY 2026. Thank you for that. I'll hand back over for the Q&A session.
Thank you. We will now conduct a question and answer session. If at any point you'd like to submit a written question, click on the Ask a Question button on the upper right of the Deal Roadshow and type in your question. If you would like to ask a live question, please press star one on your telephone keypad to enter the queue. If you have joined via web, please press the raise hand icon on the right side of your Deal Roadshow screen. Our first question is a live question from Jared with Morgans Financial. Jared, your line is now open. You may proceed.
Thanks, guys. Congratulations on a really improved result in FY 2025. Just one question from me. I mean, you've given a lot of qualitative outlook commentary going into 2026, but just interested in what you can sort of share in terms of sales growth through the first seven or eight weeks of FY 2026, given we've seen quite a few positive updates from car retailer peers in the market recently.
Hi, Jared. Yeah, thanks for that. We've had a good start. I mentioned earlier, we've seen some green shoots from our retail business already on the MCA side, a combination of the restructure and the areas of focus that we are very much focused on. A good start there. Across our wholesale and distribution businesses, it's been a very positive start. We're happy with where we are, given it's two months in, a long road to go yet. I'm looking at a conservatively positive period ahead. Obviously, we've got a lot of work to do on the Peter Stevens and assets that we're bringing forward on board. Getting back to the momentum that we need in trading, getting them out of voluntary registration only a few weeks ago. Happy where we are now.
We're at slightly different stages, I guess, just because of the slightly different timings across the various businesses for when they settled. Some have got going earlier than others. You can see that in what stage, I guess, and how they're trading from a momentum point of view. We're in the first full month. Everybody's pushing hard. It's promising for them, I think, what we're seeing in orders and so forth that are building up for September. Remembering, once we sort of get into September and October, then we're heading into our key seasonal buying period. From that perspective, timing's pretty good because that's certainly going to help get those brands back up running fast to get that momentum going. In summary, pretty happy where we've kicked off. Lots of work to do on the new stuff, the new acquisitions.
What we're seeing here is pretty promising and pleased enthusiasm around those.
Great. Maybe just a follow-up. Peter Stevens, you know, I think on their network call on the announcement, you touched on some of the synergies expected from that acquisition. Could you sort of give a sense on if you expect to be in a position to quantify some of the synergies of that acquisition in this first half or potentially at the AGM?
Sure. There are a number of them. Mike, do you want to, I mean, you're working closely on those. There are a number of them we've identified. Mike, do you want to expand on that a little bit?
Yeah, sure. Good day, Jared. Yeah, sure. We can definitely quantify more towards the end of the year. The strategy with it, as we did touch on with the investor call initially, is to run it somewhat in isolation to the rest of the group, just to stabilize the business. We've retained management and have a separate structure overseeing the group. As Matt touched on, this is our first full month, August, with all seven sites under our control. They're at where we expected them to be at this point in time. Some only settled at the very end of July. We have noticed that post-settlement, there's been some roadblocks that we've had to overcome just with franchise agreements and the ability to do registrations and new dealer licenses that were required in SA and also WA .
We have seen solid performance as we've overcome those roadblocks and trading very quickly resumed. Some quick wins for the group that we're trying to tap into now is the Cassons business, for example, or the consumables that we go through Peter Stevens and Harley Heaven to have them purchase those items through Cassons. That process has already started. Likewise, with the finance business, it should increase our net amount financed to the group between 20% to 30% over the course of 12 months when we're up and running. Obviously, with that, we can negotiate then better rates with our suppliers, volume bonuses, and so on. That's sort of where we are at this point in time, but we can further quantify some of those figures later this year.
Perfect. Thanks, Michael. That was really helpful. Maybe while you have the mic, you may just touch on Sea-Doo. I mean, it's not really a brand you guys have spoken to much in the past, but got a few mentions in the past. I'm just interested if this represents an incremental channel to the broader ATV network or I guess sort of how meaningful is it, if at all?
Yep. With BRP, there's two brands that we've taken on as part of this acquisition, one being Can-Am, which is their four-wheel brand, and the other one that is Sea-Doo. It's a new relationship for MotorCycle Holdings . Sea-Doo are the market leader in the PWC or the personal watercraft market. I do believe that it's a significant opportunity, in particular in Dandenong. The sites where we've now got a Sea-Doo franchise include Dandenong and also Adelaide. As a result of the Peter Stevens administration, there were two other stores in Victoria that closed down, one being Ringwood and one being Geelong. At this point in time, Sea-Doo have agreed not to seek out replacement dealers in those PMA. It does represent a significant opportunity for Dandenong.
Fairly conservatively, looking at what Dandenong sold last year with Ringwood no longer being there, Ringwood was the biggest competitor for the Dandenong dealership with the Sea-Doo franchise. Fairly conservatively, we think the numbers for Dandenong should grow between 60% to 80% with that brand, just simply due to there not being a dealer in Ringwood anymore. It's a premium brand. There's jet skiers in the range of sort of $35,000, close to $40,000. Quite a high average selling price. There's a very good opportunity with service. We've got some very, very good techs within the Peter Stevens business that are well experienced with the product. Good opportunity with accessories as well, you know, trailers and life jackets and things like that. We're very excited about it. We think it's a very good opportunity for the group.
Hopefully, as we've proven with other OEMs, we can further strengthen the relationship and seek out other opportunities around Australia once we're up and running.
Perfect. Thanks, Michael. Thanks, Matt and Nicole.
Thanks, Jared.
Thanks, Jared.
Thank you. Our next question is a written question from Steve with Forager Funds. The question is, could you discuss the impact, if any, of the Peter Stevens receivership on margins and profitability in the MTO business in the second half of 2025?
Thank you, and thanks, Todd, Steve. No impact for us on the second half of 2025. Everything scheduled post-year-end. No impact for 2025.
I'd just further to that as well, I might just point out that when they were under administration, which was FY 2025, it was quite an orderly process. In terms of the MotorCycle Holdings retail business, we didn't really see any impact at all. We were watching that closely just in terms of bikes potentially being discounted. It was quite an orderly process managed through the administrator. One thing that we did early on in the piece was the MotorCycle Holdings retail business. We acquired a lot of the used bike stock out of Peter Stevens and Harley Heaven to provide some additional liquidity and also to get those used bikes out and allow us to retail them through our other stores. Through the administration process in FY 2025, the impact on the MotorCycle Holdings retail business was very minimal, if at all.
Thank you. Once again, ladies and gentlemen, if you would like to submit a written question, just click on the Ask a Question button on the upper right of Deal Roadshow and type in your question. If you would like to ask a live question, please press star one on your telephone keypad or press the raise hand icon on the right side of your Deal Roadshow screen to enter the queue. That's star one on your telephone keypad or the raise hand icon on the right side of your Deal Roadshow screen to enter the queue and ask a verbal question. We will pause here briefly to allow additional questions to generate. Once more, if you would like to submit a written question, click on the Ask a Question button on the upper right of Deal Roadshow and type in your question.
Our next question is a verbal question from Ian of MotorCycle Holdings . Ian, your line is now open. You may proceed.
Hi, guys. Was TES actually cash paid at the end of June 2025?
Sorry, Ian. What was that?
The TES was paid down to $9 million end of June. Assuming that was paid by cash end of June 2025.
Apologies for the interruption, team. We're just experiencing feedback on your line, Nicole. Would you mind repeating that?
Is that better? Okay, that's better.
Yeah.
We paid $10 million off cash off of the facility during FY 2025. We paid $5 million in the first half, and we paid another $5 million in the second half. The net reduction in debt is because we report debt of the actual total debt offset by cash. As you know, we held quite a bit of cash in the bank at 30th of June, preparing to settle for Peter Stevens and Harley Heaven, which is why the actual cash repayment is $10 million. The total reduction is $76.3 million because it's net. Did I ask you a question?
Muted.
Hi, Ian.
Hi, Ian.
Just for your personal devices unmuted. Thank you. Once again, ladies and gentlemen, if you would like to submit a written question, just click on the Ask a Question button on the upper right of Deal Roadshow and type in your question. If you would like to ask a verbal question, please press star one on your telephone keypad or press the raise hand icon on the right side of your Deal Roadshow screen. We will pause here briefly to allow more questions to generate. It appears there are currently no further questions, handing it back to Matthew Wiesner for any final remarks.
Okay, thanks, thanks, Ann. Thank you again, everybody, for your time. We look forward to catching up with a number of you over the next couple of weeks to discuss further what's happening in the business and last years and, of course, where we're headed to FY 2026. Again, thank you very much and have a good day.
This concludes today's call. A replay will be made available shortly after today's call. Thank you and have a great day.