AB Dynamics (ABDP) H2 2026 earnings summary

Executive summary

• FY 2026 results were in line with July guidance; revenue fell 12% to £91.6m and adjusted operating profit declined 18% to £18.3m.

• Operating margin held at 20.0% as operational improvements and early cost actions offset lower volumes; the portfolio was refocused through VadoTech’s exit and eMpulse’s acquisition.

Financial highlights

• Revenue £91.6m, down 12%; adjusted operating profit £18.3m, down 18%; adjusted diluted EPS 60.3p, down 21%.

• Adjusted EBITDA £22.4m, down 15%; gross margin 64.5%, up 80 bps; adjusted operating margin 20.0%, down 140 bps.

• Adjusted cash flow from continuing operations £13.6m, down 51%; cash conversion 61% versus 106% in FY 2025, reflecting later customer deliveries.

• Final dividend proposed at 7.00p, up 10%; total FY dividend 10.08p, up 10%.

Outlook and guidance

• FY 2027 adjusted operating profit expected in line with current market expectations; short-term macroeconomic disruption and automotive headwinds have continued into FY 2027.

• £31m order book provides visibility into FY 2027; timing of market normalisation remains inherently uncertain.

• Guidance: adjusted operating margin 20%, underlying effective tax rate 23%–25%, capex 6%–8% of revenue and R&D ~5% of revenue, partly customer-funded.

• FY 2027 consensus: revenue £98.8m, adjusted operating profit £19.7m and diluted adjusted EPS 64.6p; consensus is analyst compilation, not management projections.