2025 Interim Results announced
Strong first-half performance
On track for 14th consecutive year of growth
Highlights:
- Membership reaches 15.0 million (H1 2024: 14.1 million), growing 0.5 million in the last six months
- Revenue up 8% to £411 million (H1 2024: £382 million) with growth across our three businesses – Breakdown, Insurance and Service, Maintenance & Repair (“SMR”)
- EBITDA up 12% to £152 million (H1 2024: £136 million) continuing our track record of uninterrupted growth
- EBITDA margin up 140 bps to 37.0% (H1 2024: 35.6%) driven by strong operating leverage and benefit of continued investments
- Operating cash flow £159 million (H1 2024: £130 million), resulting in cash conversion of 105% (H1 2024: 96%)
- Refinanced two facilities, decreasing gross debt by £165 million and reducing leverage to 4.6x (H1 2024: 5.4x)
- Our complementary offerings continued to provide members with Complete Peace of Mind, as reflected in our “Excellent” Trustpilot ratings
- Further improvement in our colleague engagement with our Glassdoor score rising to 4.5 out of 5 (H1 2024: 4.2)
Dave Hobday, Chief Executive Officer, commented:
“2025 is set to be our 14th year of consecutive growth and I am delighted with our strong first-half performance and the continued progress we have made towards our vision to be the UK’s number one for driving services.
Through our three complementary offerings – breakdown, insurance, and service, maintenance & repair – UK motorists are increasingly choosing us as their “one-stop-shop” at every stage of their driving journey. During the period, we welcomed 500,000 new breakdown members and 10,000 motor insurance members, while our expanding team of mobile mechanics delivered more than double the number of repair and maintenance jobs. At the same time, our ongoing investment in AI, digital, and data accelerated performance across the board.
We owe thanks to our dedicated colleagues, our “Orange Heroes”, for this continued success and the outstanding commitment and service they provide to our members.
With 128 years of history, and as the UK authority on motoring, we remain confident in our outlook for the remainder of 2025 and beyond.”
Delivering against our strategy
We operate in large, attractive and growing markets and our vision is to become the UK’s number one for driving services, providing complete peace of mind for our members’ driving needs through our complementary services - Breakdown, Insurance and SMR.
Our strategy to achieve this remains unchanged and during the period we made good progress against all three pillars. Highlights include:
- DRIVE continued growth in our core businesses
- We added more than 40,000 consumer breakdown members and grew our business breakdown membership by nearly 500,000, supported by a more personalised offering and new partnerships.
- In Insurance, our focus on the motor market and expanding our footprint supported a growing motor membership, increasing by 10,000 in the period.
- We have continued to innovate to drive efficiencies and service improvements with our new AI voice bot, capturing claims data more promptly, accurately and consistently delivering better member outcomes and cost savings.
- EXPAND our total addressable market into SMR
- Our growing team of 250 mobile mechanics (H1 2024: 167) completed 82,000 jobs in the period and we expanded our relationships with Motability and Cinch to include SMR.
- The continued adoption of digital channels is improving operating efficiency and enhancing the member experience, with more members now choosing to book their repair or service through myRAC.
- ACCELERATE growth by leveraging our unique data assets and myRAC digital member platform
- We continued to add features and functionality to myRAC, the hub for all our members’ driving needs, including used car valuations and an improved fuel finder, growing the user base to 3.4 million (H1 2024: 2.2m).
Outlook
We are uniquely positioned to be the “one-stop shop” for Breakdown, Insurance and SMR, providing Complete Peace of Mind in a complex motoring ecosystem for our members and partners. Our proven strategy and recurring membership model create predictable results, supporting sustainable earnings and cash flow, and this gives us confidence in our outlook for the remainder of 2025 and beyond.
Media enquiries:
Please contact: [email protected]
For images, please visit: https://media.rac.co.uk/media/album/47679
Notes to Editors:
Founded in 1897, with 128 years of history, RAC is a recognised and trusted brand with 15 million members. Our vision is to become the UK’s number one for driving services, providing complete peace of mind for our members’ driving needs.
Our strategy is to continue to differentiate and innovate. Providing more driving products and services to more members throughout their driving lifecycle across our three complementary offerings (Breakdown, Insurance and Service, Maintenance and Repair), delivering operational efficiencies and high-quality member experiences.
We use our motoring expertise to campaign for positive change for our members. As the voice of drivers, we analyse, lobby and comment on important issues, from fuel prices to road safety and are regularly invited to consult with government on motoring legislation.
For more information, please visit https://www.raccorporate.co.uk/
Who we are
For over 125 years, the RAC has been at the forefront of developing motoring solutions. Today, you can trust the RAC for complete peace of mind, for all your driving needs.
Discover our history
The RAC has been consistently at the forefront in assisting UK drivers. Take a look at a snapshot of our history so far, beginning in 1897.
Corporate responsibility
The RAC has embedded Corporate Social Responsibility (CSR) throughout the business, with a continued focus on enhancing road safety, improving fuel efficiencies and in developing innovative new products and services for members.