Autosports Group (ASX:ASG) Shares Trail Revenue Growth As Earnings Slip

Autosports Group walked into this result out of favour, with the stock down about 29% over the past three months and trading at A$1.49, yet the latest numbers paint a more complicated picture. Revenue over the last twelve months reached about A$3.2b and normalised profit before tax came in at A$53.5m. That combination indicates this is now a low margin, volume driven luxury auto retailer where small shifts in costs and funding can move equity value quickly.

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FY 2026 Earnings Summary

• Revenue (TTM to FY 2026): A$3,186.4m vs. A$2,864.5m TTM to FY 2025 (higher revenue base year on year)
• Net Income from Continuing Operations (TTM to FY 2026): A$27.6m vs. A$32.9m TTM to FY 2025 (earnings declined)
• Basic EPS (TTM to FY 2026): A$0.125 per share vs. A$0.163 per share TTM to FY 2025 (earnings per share declined)
• Gross Margin (FY 2026): 18.5% vs. 15.5% FY 2025 (margin improved)

Prefer clear charts instead of another wall of figures and footnotes? See Autosports Group’s full financial picture with an easy-to-scan view of its recent earnings trends and balance sheet strength in the company report for Autosports Group.

Autosports Group’s Growth Story Meets Key Margin Tests

Bulls argue Autosports Group can turn luxury and premium tech exposure into a higher quality earnings mix. The latest result goes some way to backing that up. Revenue reached A$3.186b while gross profit rose to A$590m. That lifted gross margin to 18.5% from 15.5%. For a volume heavy dealer group, that is an important milestone. It suggests that the Stillwell acquisition, greenfield rollouts and luxury EV brands are not just adding size but also a richer mix.

Normalized profit before tax of A$53.5m, up alongside higher margins, supports the idea of operating leverage starting to show through even as EBITDA margin sits around 4.2%. Aftersales exposure is also moving in the right direction. Service and parts have grown at a 16% CAGR, which helps explain why margins held while employee costs rose 6.7% and net income from continuing operations eased to A$27.6m.

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Autosports Group Bears See Margin Strain, Not Relief

The bearish view on Autosports Group is that fixed costs, agency models and luxury cyclicality will cap earnings power even if revenue grows. This result does not fully remove that concern. Gross margin reached 18.5%, yet EBITDA margin sat at about 4.2% and profit before tax margin at 1.7%. That combination shows most of the extra gross profit is still being absorbed by operating and funding costs.

Bears also worry that higher fixed costs will bite as the industry shifts to more direct and agency style selling. Like for like employee costs rose 6.7% and net income from continuing operations fell to A$27.6m despite the record top line. Service and parts have grown at a 16% compound rate over a decade, which helps, but on this set of numbers the aftersales strength is offsetting pressure rather than clearly rebuilding net margin headroom yet.

After rising fixed costs, thin profit before tax margins and interest cover concerns, you may want to review our independent risk analysis for Autosports Group which shows 2 important warning signs.

Take Control Of Your Next Move

If Autosports Group’s mix of thin margins and growing service revenue has caught your eye, register for free with Simply Wall St and add it to a Watchlist so you can track share price moves against fair value and wait for your preferred entry point. Once you are invested, use the Portfolio Command Center to cut through market noise and focus on the key events that matter for Autosports Group and your wider holdings. For longer term conviction, tap into real investor conversations and sentiment through the Community to see how others are thinking about the same risks and catalysts. By surfacing early signals on both upside drivers and pressure points, Simply Wall St helps you stay one step ahead of the market.

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