AB Dynamics (ABDP) H2 2025 earnings summary

Executive summary

• Operating profit and EPS grew 15% year-over-year, with operating margin up 210 bps to 20.3%, slightly ahead of upgraded expectations despite macroeconomic challenges in H2 FY2025.

• Revenue increased by 3% to £114.7m, with strong H1 double-digit growth and a more challenging H2 due to order timing and macro disruption.

• Customer activity improved towards year-end, with £32m of orders carried into FY2026, supporting momentum and visibility.

• Acquisition of BOLAB completed and integrated as planned, contributing to segment performance.

• Strong cash generation resulted in net cash of £41.4m, supporting future investments.

Financial highlights

• Adjusted operating profit grew 15% to £23.3m, with a three-year CAGR of 19%.

• Operating margin expanded by 210 bps to 20.3%, driven by operational improvements and favorable sales mix.

• EPS increased by 15% to 80.3p; proposed 20% dividend increase to 6.36p.

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

• Gross margin improved 240 bps to 62.0%.

Outlook and guidance

• Board expects FY2026 adjusted operating profit in line with current expectations, with a bias toward H2.

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

• Medium-term ambition to double revenue and triple operating profit from FY2024 baseline, targeting 10% organic revenue growth and 20%+ margins.

• Order book at £32m provides visibility into 2026.