ARB (ARB) H2 2025 earnings summary

Executive summary

• Sales revenue for FY2025 reached AUD 729.9 million, up 5.3% year-over-year, despite challenging market conditions and lower new vehicle sales in Australia.

• Profit before tax declined 4.6% to AUD 134.9 million; profit after tax fell 5.0% to AUD 97.5 million, with margin pressure from FX, US tariffs, and increased investment in growth initiatives.

• Export sales grew 16.4%, with strong growth in the US (21.4%), New Zealand (22.5%), and Middle East (45%), while Australian Aftermarket and OEM sales were flat, impacted by a 17% decline in key vehicle models.

• Major US expansion through increased investment in ORW and acquisition of 4WP retail stores, now profitable and generating positive cash flow.

• Announced special and final fully franked dividends totaling AUD 1.19 per share, up 72.5% year-over-year, fully funded from cash reserves.

Financial highlights

• Sales revenue increased by AUD 36.7 million to AUD 729.9 million, a 5.3% rise year-over-year.

• Profit before tax fell 4.6% to AUD 134.9 million; profit after tax was AUD 97.5 million, down 5% year-over-year.

• Basic EPS declined 5.7% to 117.7 cents.

• Export sales grew 16.4% to AUD 267 million, now 36.6% of group sales.

• 10-year sales CAGR: 8.3%; 10-year profit before tax CAGR: 8.4%.

Outlook and guidance

• Aftermarket order book and daily sales order intake remain healthy and near historical highs.

• Export business expected to continue positive trends, especially in New Zealand, Middle East, and Europe; US market outlook is very positive with ORW/4WP providing stable growth.

• OEM sales forecast to dip in H1 FY2026, with recovery in H2.

• New vehicle model releases and product launches expected to support growth into FY2026.

• Price increases implemented to offset FX-driven margin pressure; further increases possible if FX remains weak.