RAC reveals stronger revenues as membership numbers grow to 15 million
Vehicle breakdown specialist RAC has revealed stronger revenues and profits after it saw membership numbers grow to 15 million.
The breakdown, insurance and maintenance firm reported that revenues grew by 8 per cent to £411m over the first half of 2025, putting it “on track” for another year of growth.
It said this included growth across each of its three main divisions. The 128-year-old business said it is “confident” about its outlook for the rest of the year and for the longer term. It revealed that membership numbers grew to 15 million from 14.1 million a year earlier.
RAC also reported that group earnings before tax, interest, depreciation and amortisation, increased by 12 per cent to £152m over the half-year. The roadside assistant giant is owned by CVC Capital Partners, the Singaporean sovereign investment fund GIC and Silver Lake Partners.
Sky News reported in July that the firm’s owners were preparing to offload the business in a potential sale or stock market float, which could value the RAC at about £5bn.
Dave Hobday, chief executive of the RAC, 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 and repair; UK motorists are increasingly choosing us as their one-stop-shop at every stage of their driving journey.
“During the half-year 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.”
In a statement to accompany the results, the company said: “Our core businesses continued to grow, supported by positive market trends in both breakdown and insurance.
"We responded to 1.2 million breakdowns in the period leveraging operational efficiencies to continually improve our service while fully offsetting inflationary cost increases.
"These efficiencies included launching a new AI voice bot, which captures claims data more promptly, accurately and consistently, delivering better member outcomes and cost savings.
"We also fixed more vehicles remotely than ever, reducing wait times and enabling us to prioritise members in greatest need. Our continued investment in the latest tooling and technology included new vehicle diagnostic equipment, ensuring we remain aligned with the latest OEM (original equipment manufacturer) development.”
The RAC was founded in 1897 by Frederick Richard Simms and Charles Harrington Moore as the Automobile Club of Great Britain.
The club was given Royal approval by King Edward VII and, in 1930, RAC members were behind the creation of the Highway Code, which was published the following year. The RAC Recovery Service was launched in 1975, after its membership exceeded 1.5m.