MaxiPARTS’ Profit Boom Masks Challenges Ahead in Competitive Market

Strong Financial Performance

MaxiPARTS Limited has delivered a standout financial year ending 30 June 2025, reporting revenue of $267.1 million, a 9.5% increase over the prior year. More impressively, net profit after tax attributable to members surged 179% to $7.7 million, reflecting both operational efficiencies and the benefits of recent acquisitions.

The company’s EBITDA climbed 18.4% to $27.3 million, with margins improving to 10.2% from 9.5% the previous year. This margin expansion signals effective cost management and a successful integration of acquired businesses.

Operational Segments Drive Growth

MaxiPARTS operates through two key segments – MaxiPARTS Operations, focused on commercial truck and trailer parts distribution, and Förch Australia, which distributes automotive workshop consumables. Both segments contributed to the growth story, with MaxiPARTS Operations increasing revenue by 8.4% to $246.7 million and Förch Australia posting a 26.6% revenue jump to $21.4 million.

Förch Australia’s EBITDA more than doubled, reaching $2.7 million, with margins expanding significantly to 12.4%. This segment’s growth was fueled by sales force expansion and market share gains in the workshop consumables space.

Strategic Acquisitions and Integration

During FY25, MaxiPARTS completed the acquisition of Independant Parts Pty Ltd and Förch Brisbane, which contributed to revenue and earnings growth. Notably, the company finalized the buyout of the remaining 20% minority interest in Förch Australia shortly after the reporting period, securing full ownership and extending the exclusive distribution agreement through to 2032.

This consolidation is expected to streamline operations and enhance future profitability, as MaxiPARTS leverages Förch Australia’s growth potential and distribution network.

Balance Sheet Strength and Dividend Policy

MaxiPARTS ended the year with a net debt position of $7.2 million, down $8.7 million from the previous year, reflecting disciplined cash flow management and debt reduction efforts. The leverage ratio stands at a conservative 0.3 times, providing flexibility for future growth initiatives.

The board declared a fully franked final dividend of 3.12 cents per share, signaling confidence in the company’s ongoing cash generation and financial health. The dividend reinvestment plan remains available to shareholders, offering an opportunity to compound investment in the company.

Executive Remuneration Aligned with Performance

MaxiPARTS continues to align executive remuneration with company performance through short-term and long-term incentive programs. The Managing Director’s remuneration mix includes fixed pay, a short-term incentive tied to profit and cash flow targets, and a long-term incentive linked to earnings per share growth. While some performance rights granted in prior years lapsed due to unmet economic value added targets, the company maintains a strong focus on rewarding sustainable growth and shareholder value creation.

Outlook and Strategic Focus

Looking ahead, MaxiPARTS anticipates a stable market environment with pockets of opportunity, particularly in Western Australia and mining logistics sectors. The company plans to continue investing in organic growth initiatives, including the opening of a new MaxiPARTS store in Kalgoorlie, and further expansion of Förch Australia’s sales force.

MaxiPARTS aims to sustain EBITDA margin improvements into the low double digits and maintain a flexible balance sheet to navigate competitive pressures and evolving market conditions.