AMA Group's Turnaround: Vertical Integration and Dividend Resumption Mark a New Chapter
Record Results and a Return to Shareholder Returns
AMA Group delivered a record revenue of $1.039 billion in FY'26, with normalized pre-AASB 16 EBITDA of $68 million, up 8.6% year-over-year. The company reinstated a fully franked dividend of $0.05 per share—the first since 2019—and initiated a share buyback program. As Group Managing Director Raymond Smith-Roberts noted, “I think we're in a very good position with I mean someone used the words to me the other day, bulletproof balance sheet.” — Raymond Smith-Roberts, Group Managing Director · 2026-08-20 The balance sheet indeed looks sturdy: net debt of just $18.4 million and positive operating cash flows of $32.8 million after lease payments.
Strategic Pivot: ACM Parts and the Vertical-Integration Advantage
The most notable strategic shift is the changed stance on ACM Parts. After years of underperformance, the parts business turned from a significant loss to $2.3 million EBITDA, and management now views it as an integral part of the group. "There's no doubt there is an evolution of how we're viewing that done in the last 12 months," said Ray, adding, “it's not really for sale anymore, and it's definitely helping amongst our overall service offering.” — Raymond Smith-Roberts, Group Managing Director · 2026-08-20 This vertical integration—combining repair services with parts sourcing—gives AMA a unique competitive advantage. The company is also expanding its ADAS business and mechanical capabilities, which contributed to the Specialist division's 16.5% revenue growth.
Macro Headwinds: Middle East, Fuel Costs, and Consumer Caution
Despite the growth, the company faced headwinds, particularly in Q4. "The volume wasn't everywhere that we would expect it to be, in some cases, down a bit," admitted Ray. The geopolitical Middle East conflict has reduced drivable repairs as consumers delay minor repairs, while high fuel costs and public transport concessions dampened demand. The company sees a shift toward more complex, non-drivable repairs, which is actually positive for average repair prices. Management is not assuming an uptick in volumes: “We're not assuming significant uplift in volume in those numbers. We're just – we're hoping that the world settles down and doesn't get much worse.” — Raymond Smith-Roberts, Group Managing Director · 2026-08-20
Network Optimization and Capital Allocation
AMA continues to rationalize its network, particularly in Victoria, while expanding in high-demand areas like Queensland and Western Australia. Capital expenditure is set to rise to ~$35 million in FY'27, moderating in FY'28-29. The company is balancing growth investments with returning cash to shareholders via dividends and buybacks. The reinstated dividend program is a signal of confidence, though debt facility restrictions currently cap distributions to NPAT.
The team have done a very good job. We're always working to improve more. I would like to always want to achieve more, but I think we've got a very firm foundation. ... I'm excited about where we're going. I think the broad value chain that we're developing in the business gives us a very key competitive advantage going forward.
Looking ahead, AMA guided to normalized pre-AASB 16 EBITDA of $75-80 million for FY'27, with Capital SMART expecting another strong year. The company's focus on operational excellence, parts integration, and ADAS growth positions it well for sustained profitability. The market will watch whether the macro headwinds abate and whether the vertical integration strategy continues to deliver the promised margin expansion toward the 10% EBITDA target.