Highlights

  • NPBT guidance raised to $63 million, up from $60 million
  • Strong vehicle sales, improved margins, and record finance lending drive growth
  • EC Credit goodwill write-down of $7–9 million expected; core divisions remain strong

Turners Automotive Group Limited (NZX:TRA) has upgraded its FY26 earnings guidance, reflecting robust trading across all core divisions. The Group now expects net profit before tax (NPBT) of approximately $63 million, up from the previous $60 million, approaching its FY28 target of $65 million. Strong summer vehicle sales, improved margins in Auto Retail, and record vehicle finance lending contributed to this performance. While EC Credit may incur a non-cash goodwill write-down of $7–9 million, the division is non-core. Excluding this adjustment, Turners continues to deliver record profits and consistent earnings growth.

Positive Trading Across Core Divisions

Summer trading has been highly favorable, with the Auto Retail division reporting strong vehicle sales volumes and improved margins. The Group’s disciplined purchasing strategies, effective pricing, and market share gains have further strengthened performance. Vehicle finance also delivered robust results, with January and February marking record lending activity. This aligns with Turners’ strategy to grow its finance book without compromising credit quality. Overall, strong operational execution across all core divisions has supported earnings upgrades and demonstrates the resilience of Turners’ automotive platform even amid challenging economic conditions.

EC Credit Review and Record Profit Outlook

Turners has largely completed its review of the EC Credit division, with a non-cash goodwill write-down of $7–9 million expected, pending final audit. While EC Credit is the Group’s smallest division and considered non-core, the adjustment does not affect the overall profitability of the core business. Excluding this write-down, Turners’ upgraded guidance confirms another record trading profit, reflecting consistent earnings growth and operational strength. The Group will provide further detail at its full-year results announcement in May and share five-year strategic plans during its institutional investor day on 24 March.

FAQs

  1. Why did Turners upgrade its FY26 earnings guidance?

Stronger-than-expected vehicle sales, improved margins in Auto Retail, and record finance lending drove the upgrade.

  1. What is the impact of the EC Credit goodwill write-down?

A non-cash write-down of $7–9 million is expected, but it does not affect the core divisions’ strong earnings performance.

  1. When will Turners provide further details?

Full-year results will be announced in May, and the five-year strategy will be shared at the investor day on 24 March.