ARB (ARB) investor relations material

Executive summary

• FY 2026 was marked by challenging economic and geopolitical conditions, with vehicle supply constraints and softer demand impacting new 4x4 sales, especially in Australia.

• Despite a 3.8% decline in sales revenue to AUD 702 million, profit margins recovered in the second half, demonstrating resilience.

• Strategic investments in engineering and global distribution are delivering returns, with further expansion planned in China, South Africa, and other key markets.

• Brand strength and higher accessory attachment rates supported gross profit, with a strong order book and daily sales intake.

Financial highlights

• Sales revenue declined 3.8% year-over-year to AUD 702 million; profit before tax fell 8.9% to AUD 123 million; profit after tax was AUD 92.4 million, down 5.2%.

• Basic EPS declined 5.9% to AUD 1.11; effective tax rate decreased to 24.9% due to higher profits in Thailand.

• Gross margins improved in the second half, supported by price increases and favorable FX movements.

• Cash flow from operations was AUD 103.7 million; net cash at year-end AUD 47.9 million, with no debt.

• Fully franked dividends of AUD 0.35 per share announced for FY 2026; total dividends paid AUD 83.6 million.

Outlook and guidance

• Expectation for FY 2027 new vehicle sales to be broadly in line with FY 2026, with improved Toyota supply and positive trends in export and U.S. markets.

• OEM sales anticipated to recover as supply improves and new contracts commence.

• Engineering investment to increase 10%-15% annually, supporting faster product development.

• Margins expected to remain in line with FY 2026 averages, with FX hedging in place until November 2026.

• Expansion in China and South Africa, and continued investment in engineering, are expected to drive future growth.