Amotiv flags 1% decline in FY25 unaudited earnings, up to $190m impairment
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The news: Vehicle parts and solutions company Amotiv expects unaudited underlying earnings before interest, tax and amortisation for financial year 2025 to be 1% lower than the prior year, in line with a previous earnings warning issued in April.
The numbers: Amotiv expects underlying earnings before interest, tax and amortisation for FY25 to be approximately $192 million. This is in line with an earnings warning issued in April.
Cash conversion is expected to be marginally ahead of the 85% previously flagged.
Amotiv expects to recognise a non-cash impairment charge in the range of $180 million to $190 million in its FY25 results. This has been assessed as a part of Amotiv’s year-end value in use analysis of the APG business.
The context: The impairment is a non-cash accounting adjustment, Amotiv told the exchange, that “has no impact on underlying trading performance, operating cashflows or compliance with debt covenants”.
Amotiv said it “adopted a more cautious long-term growth outlook for the APG business” due to external and macroeconomic factors.
This includes forecast moderation in new vehicle sales and lower vehicle mix in Australia, moderation in the New Zealand outlook and “a more conservative view of future cyclical growth in Caravan/RV, foreign exchange impacts and potential US tariffs”.
Audited FY25 results will be released on 13 August.
The source: ASX
