Autosports Group flags record order write as EV demand surges past 40pc of customer orders

Prestige and luxury automotive retailer Autosports Group (ASX: ASG) has flagged a record order write in the second half of FY26, driven by a dramatic spike in battery electric vehicle (BEV) demand that has seen the category jump from about 15 per cent of customer orders before March this year to more than 40 per cent in April.

The Sydney-based company, which is Australia's only ASX-listed specialist prestige and luxury car dealer, issued a trading update warning that the surge in orders has created a supply-demand imbalance, pushing a significant volume of deliveries into FY27 and capping the revenue it can recognise in the current financial year.

Autosports expects to deliver preliminary normalised net profit before tax of $51 million to $54 million for FY26, ahead of the $47.1 million posted in FY25.

Order write across the group's dealership network rose 22 per cent in the second half of FY26 to the end of May compared with the prior corresponding period, underscoring the strength of demand across the prestige segment.

Gross margins are expected to finish ahead of FY25 levels despite three interest rate rises during the second half of FY26 elevating the group's cost base.

The company points to acquisitions completed during the current financial year in Canberra, Melbourne and Adelaide as contributing to the stronger result. This includes the $34 million buyout of 10 Barry Bourke Motors dealerships in Victoria announced in November.

"Customer orders have outpaced BEV inventory, pushing a large portion of H2 FY26 deliveries into FY27," says the company.

"This imbalance is expected to begin unwinding towards the end of Q1 FY27 as brand partners adjust production and supply."

The BEV shift flagged by Autosports aligns with broader national trends with the latest VFACTS data published last month showing electric vehicles hit a record 16.4 per cent national market share in April.

The data showed that 92,591 vehicles sold across the country that month, up 2.2 per cent year-on-year, with electric vehicle manufacturer BYD accounting for 7,702 vehicles to claim 8.3 per cent market share and rank as the second-largest seller behind Toyota, which moved 15,185 units.

Autosports Group points out that while macro conditions remain challenging, underlying trading "remains sound".

"Three interest rate rises in H2 FY26 have impacted inventory holding and corporate interest costs," it says.

"Operating expense ratios have also been temporarily elevated by the size of the order bank, as costs are incurred ahead of order delivery. Both are expected to normalise as the order bank converts to deliveries through FY27."

The company says it retains a positive outlook heading into the new financial year.

"Despite difficult macro conditions, growth is expected to be supported by improved BEV supply converting the order bank into deliveries, further contribution from the full-year cycling of FY26 acquisitions in Canberra, Melbourne and Adelaide, and further on-strategy growth opportunities through the addition of new BEV-focused brands at greenfield sites," it says.

The upbeat assessment failed to give shares in Autosports Group a lift as they closed 6 per cent lower at $1.67 today.