AA Motors Towards Growth as Sale Speculation Builds Amidst Strong Financial Results

The AA’s chief executive has indicated there remains work to be done before any potential sale, despite the motoring organisation reporting its fourth consecutive year of growth. Jakob Pfaudler shared that private equity investors were “pleased with the progress” as financial year 2025 results revealed a 12% surge in revenue to £1.45 billion, alongside a 28% increase in operating profit reaching £245 million.

Customer growth has been particularly robust, with the organisation attracting 300,000 new members, bringing their total customer base to 16.3 million. The company’s financial position has strengthened through the repayment of £174 million in gross debt, reducing total net debt to £1.976 billion as of 16 April.

The organisation’s strategic focus on digital transformation continues with planned enhancements to their app, which currently serves 3.3 million users. New features in development include EV charging availability and fuel finder capabilities. The AA has also made significant strides in electric vehicle servicing, with nearly all patrols now trained to Level 2 competency for handling EV-specific issues.

Mobile mechanic services currently represent a key growth area for the AA and following successful launches in Manchester and Birmingham last October, The service is now available in most major cities, offering manufacturer servicing and maintenance at customers’ preferred locations.

The AA maintains its position as the UK’s largest breakdown service provider, handling 3.5 million breakdowns in the past year with a patrol force of 2,700. A recently announced partnership with NatWest Boxed is set to expand the AA’s financial services offerings, with new savings accounts and personal loans expected to launch in the coming months.

Despite positive momentum, Pfaudler emphasised that investors see “unfinished business and more to be done,” though he remained open to the possibility of a future sale or exit strategy. The company continues to advocate for clearer government leadership on the transition to electric vehicles, noting that currently only about 3% of their customers own EVs.