AB Dynamics (ABDP) H2 2025 Pre Recorded earnings summary

Executive summary

• Achieved 15% growth in operating profit and EPS, with 3% revenue growth year-over-year, driven by strong H1 performance and margin expansion despite macroeconomic challenges in H2.

• Strong order book of GBP 32 million carried into FY26, providing momentum and visibility for the next year.

• Continued progress on medium-term growth plan, aiming to double revenue and triple operating profit.

• Strong cash generation resulted in net cash of GBP 41.4 million, supporting further investment.

Financial highlights

• Revenue increased to GBP 114.7 million (up 3%), adjusted operating profit rose to GBP 23.3 million (up 15%), and adjusted operating margin improved to 20.3% (up 210 bps year-over-year).

• Adjusted diluted EPS grew 15% to 80.3p; final dividend increased 20% to 6.36p.

• Gross margin rose 240 bps to 62.0%.

• Cash conversion at 106%, with a three-year average of 112%.

• Net cash at year-end was GBP 41.4 million after GBP 8.1 million investment in acquisitions and capital projects.

Outlook and guidance

• Board expects FY26 adjusted operating profit in line with current expectations, with a bias towards H2.

• Long-term growth supported by structural and regulatory drivers in active safety, autonomy, and vehicle automation.

• Order book and recurring revenue provide good visibility into FY26.

• Medium-term ambition to double revenue and triple operating profit against FY24 baseline.

• Targeting over 20% operating margin and 10% organic revenue CAGR.