Vehicle breakdown giant RAC has posted strong financial results for the first half of 2025, with revenues climbing eight per cent to £411 million. The 128-year-old company attributed the growth to increased membership, which reached 15 million customers compared to 14.1 million in the previous year.
Group earnings before tax, interest, depreciation and amortisation surged 12 per cent to £152 million during the six-month period. The breakdown, insurance and maintenance specialist reported growth across all three of its main business divisions.
Record membership drives performance
RAC welcomed 500,000 new breakdown members and 10,000 motor insurance customers during the half-year period. The company's mobile mechanics team doubled the number of repair and maintenance jobs completed compared to the same period last year.
The firm expressed confidence about its prospects for the remainder of 2025 and beyond, describing itself as being "on track" for another year of growth. This would mark the company's 14th consecutive year of expansion.
Ownership shake-up on horizon
RAC is currently owned by private equity firm CVC Capital Partners, Singapore's sovereign investment fund GIC, and Silver Lake Partners. According to Sky News reports from July, the owners are preparing to sell the business through either a direct sale or stock market flotation, with a potential valuation of around £5 billion.
Chief executive Dave Hobday said: "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."
Technology investment pays dividends
The company highlighted its ongoing investment in artificial intelligence, digital platforms and data analytics as key drivers of improved performance across all areas of the business. Hobday emphasised how these technological advances have accelerated the company's growth trajectory during the reporting period.
Sources used: "PA Media", "Sky News" Note: This article has been edited with the help of Artificial Intelligence.
