Turners upgrades profit guidance, says it’s set for fifth record result

Turners Automotive Group is set to earn a fifth consecutive profit after upgrading its profit guidance once again.

Despite spending on motor vehicles falling in November and December, Turners Automotive Group has announced an upgrade to its FY25 guidance after a strong third quarter.

The business is upgrading its estimated net profit before tax for FY25 from roughly $50 million to “at least $53m”, the fifth consecutive record profit for the company.

It would be an 8% increase on FY24, in which it reported a net profit before tax of $49.1m. It reported a final profit for FY24 of $32.9m.

Turners chief executive Todd Hunter said he was pleased to surpass the target despite the current economic challenges.

“Our wider team at Turners continue to do an outstanding job, and importantly, this gives us strong momentum as the team focuses on our next target of $65m by FY28,” Hunter said.

The business said it was still growing in the challenging economic climate due to a “diversified business model, clear strategy” and focus on customers.

“The business has recovered with Q3 trading showing a significant step forward over Q1 and Q2, with vehicle margins recovering and interest rates continuing to fall,” the company said.

Turners also expects its second-half result for the 2025 financial year for all four of its business divisions (Auto Retail, Finance, Insurance and Credit Management) to be ahead of 2H24.

In its last financial update, Turners reported earnings before interest and tax growth of 12% to $58.6m.

The company declared a dividend of 7.5 cents per share (cps), taking its full-year dividend in 2024 to 25.5cps, up 11%.

Turners’ auto segment profit was up 27% and constituted more than 50% of group profits.

“The finance segment has weathered the interest rate shock as we deliberately sacrificed some top-line growth over the last two years to focus on higher-quality borrowers, positioning the segment well as interest rates ease.

“Beyond 2025, Turners is well-placed to continue to make strong progress, thanks to the resilience of a diversified business model (activity and annuity), and clear strategy for further growth.”

Turners is set to release its full-year results for the 2025 financial year in late May.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.