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MotorCycle Holdings (ASX: MTO) has outperformed the national market after cruising to record sales of $650 million in FY25, supported by a surge in e-commerce operations and solid growth in the company’s key motorcycle retail and wholesale operations.
The record sales, up 11.6 per cent, drove the Brisbane-based group’s underlying earnings even higher, with EBITDA rising 12.8 per cent to $51 million in defiance of a softening in the motorcycle market nationally.
MotorCycle Holdings, which now operates a network of 52 retail dealerships after acquiring some of the business assets of Peter Stevens Motorcycles and Harley-Heaven, increased its market share of the national market to 16.6 per cent from 15.5 per cent a year earlier.
The recent acquisition, which was finalised in the current financial year and has expanded the group into South Australia and Western Australia, is expected to boost MotorCycle Holdings to 20 per cent market share in the current year.
New vehicle retail sales in FY25 rose 8 per cent to 15,637 units, while used vehicle sales grew 5 per cent to 10,533 units.
Wholesale distribution revenue jumped by 25 per cent, while e-commerce sales surged 59 per cent – figures that CEO Matthew Wiesner says show that the company is “winning across multiple fronts”.
"FY25 has been an exceptional year of growth and strategic advancement for MotorCycle Holdings,” says Wiesner.
“Our record financial results demonstrate our ability to significantly outperform the market while building sustainable competitive advantages.”
Wiesner says the group’s solid e-commerce growth demonstrates “early progress in digital engagement”.
“However, this represents just the beginning of what we can achieve through comprehensive digital transformation over the next three to four years,” he says.
“Our strategic vision extends beyond traditional motorcycles. We are successfully expanding into new and existing categories including ATVs and watercraft with the Sea-Doo brand in Victoria and South Australia.”
MotorCycle Holdings posted a bottom-lone net profit after tax of $18 million, up 27 .7 per cent compared with a year earlier.
The company also dramatically reduced net debt by 76.3 per cent to $9 million through strong cash generation by the business during the year.
Chairman Rick Dennis describes FY26 as a pivotal year for the group as it integrates the Peter Stevens Motorcycles and Harley-Heaven acquisitions.
“We must accelerate our digital and data transformation, focusing on driving improvement in customer experience, also in our operational efficiencies and productivity whilst developing our people skills to work in this dynamic retail space,” says Dennis.
“We remain focused on cost management, inventory aging and improved stock turns while investing in the digital capabilities that will drive our long-term competitive advantage.
MotorCycle Holdings is paying a final dividend of 5c per share, taking the total payout for the year to 13c per share – up 30 per cent for the year.
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