MaxiPARTS Faces Market Headwinds Despite Strong Profit and Dividend Gains
MaxiPARTS Limited reported a robust FY25 with a 57% jump in net profit and a 20% dividend increase, underpinned by operational gains and a key acquisition in Förch Australia.
- Revenue rises 9.5% to $267.1 million
- EBITDA grows 18.4%, margin improves to 10.2%
- NPAT from continuing operations up 57%
- 20% minority stake acquired in Förch Australia
- Dividend increased 20% to 6.17 cents per share
Strong Financial Performance Amid Market Challenges
MaxiPARTS Limited (ASX – MXI) has delivered a compelling FY25 financial performance, with revenue climbing 9.5% to $267.1 million and EBITDA rising 18.4% to $27.3 million. Notably, the company achieved a 10.2% EBITDA margin, marking a 70 basis point improvement from the prior year and a milestone for the division. Net profit after tax from continuing operations surged 57% to $8.8 million, reflecting both operational efficiencies and strategic growth initiatives.
The company’s earnings per share from continuing operations rose sharply by 43.9% to 15.4 cents, while the board declared a fully franked final dividend of 3.12 cents per share, bringing the full-year dividend to 6.17 cents, a 20% increase. This dividend growth signals confidence in sustained cash flow generation despite a mixed market environment.
Strategic Expansion and Operational Highlights
MaxiPARTS’ operational success was driven by several key factors. The acquisition of Independent Parts in December 2023 contributed to an 8.4% revenue uplift in the core operations segment, with consistent sales performance across both halves of the year. The company’s focus on expanding its Japanese product range yielded over 15% year-on-year growth, while the Western Australian market showed resilience, buoyed by mining logistics demand.
In the Förch Australia segment, revenue grew 26.6%, or 13% on a like-for-like basis excluding the Brisbane acquisition impact. The company completed a 20% minority stake acquisition in Förch Australia in July 2025, alongside extending exclusive Australian distribution rights through 2032. This move strengthens MaxiPARTS’ foothold in the workshop consumables market and supports ongoing sales force expansion and digital initiatives, including a recently launched B2C e-commerce platform.
Balance Sheet and Future Outlook
MaxiPARTS also extended its debt facilities to September 2028 with a lower fee structure, enhancing financial flexibility to navigate competitive pressures and market softness, particularly on Australia’s east coast. The company’s operating cash flow of $23 million and an 84% cash conversion rate underscore robust liquidity management.
Looking ahead, MaxiPARTS anticipates steady market conditions with pockets of strength in Western Australia and mining logistics. The company plans to continue organic growth programs aimed at pushing EBITDA margins into the low double digits, expand Förch Australia’s sales footprint, and open a new store in Kalgoorlie leveraging existing customer relationships. System upgrades and people development remain priorities to sustain long-term growth.
Overall, MaxiPARTS’ FY25 results reflect a well-executed strategy balancing growth, margin improvement, and capital management, positioning the company to capitalize on selective market opportunities despite ongoing sector challenges.
Bottom Line?
MaxiPARTS’ strong FY25 momentum sets the stage for cautious optimism amid evolving market dynamics.
Questions in the middle?
- How will MaxiPARTS sustain margin improvements amid rising competitive pressures?
- What impact will the full integration of Förch Australia’s stake have on future earnings?
- Can growth in Western Australia offset softness on the east coast in FY26?
