Amotiv (AOV) H2 2026 earnings summary

Executive summary

• Delivered FY 2026 underlying EBITA of AUD 195.1 million, up 1.6% year-over-year, precisely matching guidance despite a challenging market, supported by offshore growth and Amotiv Unified initiatives.

• Revenue grew 2.7% to over AUD 1 billion, driven by offshore expansion, new business wins, and product development.

• Amotiv Unified program generated AUD 15 million in net benefits and delivered cumulative gross annualized benefits of AUD 25 million by FY 2026, supporting efficiency and growth.

• Strong cash generation enabled increased dividends, completion of a buyback, and reduced leverage to 1.85x.

• Announced an orderly CEO succession, with the current CEO to remain through transition.

Financial highlights

• Revenue up 2.7% to $1,023.9m, underlying EBITA up 1.6% to $195.1m, and underlying EPSA up 4.5% year-over-year.

• Gross margin was 42.8%, down 1 percentage point, but improved in the second half.

• Statutory net profit after tax reached AUD 75.1 million, a significant turnaround from the prior year.

• Cash conversion was 93.1%, up 2.5 percentage points, supporting AUD 75 million in shareholder returns.

• ROCE improved 0.3ppt to 13.4%, with a medium-term target of 15%.

Outlook and guidance

• Modest revenue and underlying EBITA growth expected in FY 2027, supported by offshore expansion, pricing actions, and Amotiv Unified benefits.

• Offshore revenue, especially from the U.S. and Europe, anticipated to offset subdued ANZ conditions.

• Four-wheel drive segment positioned for growth from Chinese OEMs and new vehicle launches, but domestic sales expected to remain soft.

• LPE margins to moderate slightly due to absence of one-off benefits and ongoing U.S. investment.

• Powertrain & Undercar expected to remain resilient, with Infinitev on track to break even by end of FY 2027.