How MotorCycle Holdings Drove Record Sales and Slashed Debt in FY25

Strong Financial Momentum

MotorCycle Holdings Limited (ASX, MTO) has reported a compelling set of full-year results for FY2025, underscoring its position as a leading vehicle and accessory retailer and distributor in Australasia. The company’s sales revenue rose 11.6% to $650 million, driven by both new and used motorcycle sales, alongside a 25% increase in wholesale distribution revenue. This top-line growth translated into a 27.7% jump in net profit after tax to $18 million, reflecting improved operational efficiency and disciplined cost management.

EBITDA grew 12.8% to $51 million, despite higher depreciation and amortisation charges, highlighting the underlying strength of the business. Notably, MotorCycle Holdings reduced its net debt by a striking 76.3% to just $9 million, bolstering its balance sheet and providing greater financial flexibility.

Operational Excellence and Market Share Gains

The company’s operational performance was equally impressive. Inventory levels fell, signalling enhanced capital discipline and inventory management. Retail revenue grew 7%, supported by record unit sales in both new and used motorcycles, with new vehicle market share climbing to 16.6%. This marks a significant gain in a competitive market, driven by strong sales discipline and category expansion, including new electric motorcycle brands like Mojo and CFMOTO.

Digital transformation efforts paid off with a 59% surge in eCommerce sales, reflecting increased digital engagement and a shift in consumer purchasing behaviour. These initiatives are expected to continue driving growth and improving customer experience in the coming years.

Strategic Acquisitions and Growth Outlook

MotorCycle Holdings expanded its footprint through the acquisitions of Peter Stevens and Harley-Heaven, established brands with strong regional presence in South Australia and Western Australia. These acquisitions are anticipated to be earnings per share accretive in FY2026, enhancing the company’s market leadership and OEM relationships.

Looking ahead, the company plans to maintain a sharp focus on cost management, digital and data transformation, and further growth in used motorcycle sales. Improved agricultural conditions are expected to benefit off-highway vehicle sales, while continued debt reduction and dividend payments underscore a commitment to shareholder returns.

With a refreshed executive team and a clear strategic roadmap, MotorCycle Holdings appears well-positioned to sustain its growth trajectory and capitalize on evolving market opportunities.