Highlights

  • Turners posted record normalised NPBT of NZ$63.2 million, up 16%, with all three core automotive divisions delivering profit growth.
  • The company expects to hit its NZ$65 million profit target in FY27, a year ahead of schedule.
  • Total dividends rose 14% to 33.0 cents per share, extending Turners’ 12-year track record of Dividend growth.

Overview

Turners Automotive Group (NZX:TRA) reported a record FY26 result, with normalised net profit before tax rising 16% to NZ$63.2 million as each of its three core divisions—Auto Retail, Finance, and Insurance—posted profit growth. A strong second-half recovery and record Q4 performance helped offset softer conditions earlier in the year. Turners’ result has effectively brought forward its NZ$65 million FY28 profit target into FY27, reinforcing confidence in its longer-term NZ$100 million FY31 goal. Management says disciplined Capital allocation, lending growth, and Business Diversification continue to support Earnings momentum.

Is Turners’ Finance Business Becoming Its Biggest Growth Engine?

Turners’ Finance division was a standout contributor in FY26, with the Loan book growing 27% to NZ$566 million and divisional profit rising 19%. New lending surged, margins improved, and consumer arrears remained well below industry averages, highlighting strong Credit quality. Funding costs also improved after the company completed a NZ$200 million securitisation transaction. Management believes the larger loan book and continued Market Share gains position Finance as a major earnings driver, helping offset weaker consumer Demand in parts of Auto Retail.

Can Turners Stay on Track Despite Softer Consumer Demand?

While Turners delivered a record Q4, management said consumer demand softened in late FY26 following geopolitical tensions and continued into early FY27. However, the company’s diversified earnings model provides resilience, with recurring income from Finance and Insurance helping offset weaker retail conditions. Turners has also deployed disciplined inventory, lending, and cost-management strategies that supported performance through previous downturns. Management remains confident the group can still achieve its NZ$65 million FY28 profit target a year early in FY27.