AA boss hails ‘breakout year’ since takeover as profit hits £245m
The AA has reported a more than quarter rise in full-year profit as the breakdown giant marked a fourth consecutive year of growth since being taken private in 2021.
Operating profit increased 28 per cent to £245m, while revenue grew 12 per cent to £1.5bn.
On an adjusted basis, earnings before interest, taxation, depreciation and amortization (EBITDA) rose six per cent to £450m.
The AA said it had assisted with 3.5m breakdowns in 2025, the most of any provider in the UK.
It marks a sharp changed in fortune from the days of AA’s public listing. The company was taken over by the private equity investors Towerbrook and Warbug Pincus in 2020 in a deal valued at £219m.
The AA repaid £174m in gross debt, assisted by a major cash injection from its US backer Stonepeak.
“2025 was a breakout year for The AA, with the continued turnaround of the business culminating in our fourth consecutive year of accelerating growth since the take private in 2021,” Jakob Pfaudler, chief executive, said in a statement.
“We have continued to improve the financial health of the business, reducing both our leverage and net debt, further cementing this as a year of success for The AA.”
Pfaudler said the company had entered an “exciting new phase” as it shifts focus from “transformation to expansion.”
“With a strong foundation in place, cemented market leadership, and a clear roadmap for growth, we are ready to take The AA to the next level.”
In its last set of full-year results, the AA reported a surge in revenue to around £1.3bn, however operating profit dipped on higher finance costs.