MotorCycle H1 Earnings Call Highlights

26 Feb 2026, 03:10 by Sarita Garza · The Markets Daily

MotorCycle (ASX:MTO) executives highlighted record first-half results for the six months ended 31 December, pointing to strong revenue growth, expanding market share, and an acquisition-led boost from the Peter Stevens and Harley-Davidson transaction completed on 31 July.

Chief Executive Officer Matthew Wiesner said the company delivered “record revenue, unit sales, and strong profit growth,” supported by a diversified model spanning wholesale distribution and retail across new and used vehicles, parts and accessories, service, and finance. The group operates 55 locations nationally and said new vehicle market share is now approaching 20%.

Financial performance and dividend

For the half, the company reported record sales revenue of AUD 396.4 million, up 20.9% versus the prior corresponding period. Wiesner said growth was driven by “organic momentum” and the contribution of the Peter Stevens and Harley-Davidson acquisition.

Underlying profitability rose alongside sales. Underlying net profit after tax increased 28.7% to AUD 12.1 million, while underlying EBITDA rose 21% to AUD 31.7 million. Gross margin improved to 25.9% from 25.2%, which management attributed to stronger vehicle distribution margins and favorable currency movements.

Management noted AUD 1.3 million of adjustments to statutory earnings, including AUD 1.1 million of acquisition costs related to the Peter Stevens and Harley-Heaven transaction and AUD 200,000 linked to the current-year impact of a historical stamp duty underpayment.

The board declared a fully franked interim dividend of AUD 0.095 per share, up 19% from the prior year. Earnings per share increased to AUD 0.164 from AUD 0.128.

Balance sheet, inventory, and cash generation

Wiesner said inventory excluding the Peter Stevens Group reduced by AUD 10 million to AUD 138.7 million, reflecting what management described as improved operational efficiency and disciplined capital management. The company also acquired AUD 26.9 million of inventory as part of the Peter Stevens acquisition.

Management emphasized cash generation during the period, saying it enabled the company to fund the Peter Stevens Group asset purchase from funds on hand while also reducing net debt by 32.2% to AUD 6.1 million and increasing the dividend.

On the balance sheet, the company pointed to the acquisition of approximately AUD 10 million in net assets from the Peter Stevens and Harley-Davidson Group and additional assets required to recommence the business post-administration, including new bike inventory, related bailment finance, and right-of-use assets and liabilities.

Segment and operational highlights

Chief Operating Officer Michael Poynton said the first half included continued market outperformance and organic growth in new and used retail vehicle sales, plus growth in wholesale distribution. He also cited efficiency gains from implementing new business systems and processes.

Key performance points discussed on the call included:

Retail revenue grew 21.3%, driven by record unit sales in both new and used vehicles.
Wholesale distribution revenue grew 10.8%, while Poynton separately noted wholesale vehicle distribution growth of 19%.
Gross profit rose 23.4% with margin at 25.9%.
E-commerce sales increased 66%, which management called a key future growth area.

By category, Poynton said growth was broad-based, with increases in both revenue and gross profit across every division:

New vehicle revenue rose 23.4% to AUD 213 million; new vehicle gross profit increased 33.6% to AUD 33.8 million.
Used vehicle revenue increased 17.7% to AUD 78.9 million; used vehicle gross profit climbed 24.8% to AUD 12.2 million.
Parts and accessories revenue grew 15.8% to AUD 81.4 million; gross profit increased 14.3% to AUD 33.3 million, which management described as the highest-margin category.
Finance and insurance revenue increased 16% to AUD 9.8 million, with gross profit up 16.3%.

In unit terms, new vehicle retail sales grew 22.3% to a record 9,966 units. Market share increased to 19.8% from 16.6% in the prior financial year; management said 16.3% was achieved organically with the remainder from Peter Stevens and Harley-Davidson. Used vehicle unit sales increased 12.5% to 6,224 units, also a record half-year result.

Peter Stevens and Harley-Davidson integration, margins, and duty provision

Management said the Peter Stevens and Harley-Davidson integration was progressing well and “operationally exceeding” expectations across people, property, and systems. Poynton said the acquired businesses were loss-making in the first month after completion (August) but profitable from the second month, with revenue and gross profit improving month-on-month. He said October through December performance was at or above prior-year levels, and January was described as “very strong.”

Poynton reported the acquired businesses delivered a gross profit margin of 24.6%, which he said exceeded the legacy retail business margin of MotorCycle Holdings. He also noted that parts and accessories purchased at a discounted rate as part of the acquisition supported higher margins as the business ramped up. During Q&A, management added that Harley-Davidson’s influence on margins may show more of a quarterly cycle due to incentive programs tied to quarter-end periods.

One area of underperformance within the acquired operations was e-commerce, according to Poynton, who said online was “the only business which is backwards” versus the same period last year, largely due to the time needed to rebuild online search positioning after the administration process.

Separately, Wiesner reiterated the company’s disclosure from 13 November 2025 that it had identified an underpayment of vehicle registration duty related to vehicles sold by Mojo commencing in 2016. Management said a AUD 5 million provision was recorded on the balance sheet, comprising AUD 3.5 million in duty and AUD 1.5 million in related interest. Under accounting standards, the company said AUD 4.85 million of the provision was created at 1 July 2024, with an accompanying deferred tax asset of AUD 1.45 million and a net AUD 3.4 million adjustment reflected in opening retained earnings.

Outlook and strategic priorities

Looking to the second half of FY26, Wiesner said the company’s priorities include structured expense reductions, continued digital transformation, building omni-channel capability, optimizing retail and warehousing property, increasing stock turns, and driving further growth in used bike sales. He also said the company is “circa 40%-45%” of dealer used bike listings on bikesales.com.au.

Management flagged several factors expected to influence second-half performance, including the interest rate environment and broader consumer sentiment. Wiesner also noted results typically have a first-half weighting due to historical seasonality, while the Peter Stevens Group is expected to contribute more in the second half as operations move closer to “business as usual.”

Both Wiesner and Poynton pointed to the strengthening Australian dollar as supportive for wholesale distribution margins. Poynton said the company’s wholesale businesses—Mojo, Cassons, and Forbes & Davies—have benefited from FX, and cited a recent lift in Mojo’s gross profit margin by “a couple of percentage points.” He added that CFMOTO continued to gain market share in Australia and New Zealand, with new higher-price models expected to roll out over coming months and the agricultural market described as “holding up quite well.”

At the same time, management said corporate overhead would continue to rise as the company invests in people, systems, and transformation initiatives. Wiesner described the transformation program as a multi-year effort, with larger decisions likely extending into a 24–36 month process, and said the company was not seeking to rush major changes.

About MotorCycle (ASX:MTO)

MotorCycle Holdings Limited owns and operates motorcycle dealerships in Australia. It operates through two segments, Motorcycle Retailing and Motorcycle Accessories Wholesaling. The company is involved in the sale of new motorcycles, used motorcycles, accessories and parts, and mechanical protection plan contracts; wholesaling and retailing of motorcycle accessories; and financing and insurance services for motorcycle purchases through third-party sources, as well as servicing and repair of motorcycles.