ARB Corporation shares rise on FY25 revenue growth, special dividend
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The news: Shares in ARB Corporation lifted in early trade, as the car accessories supplier reported a 5% slide in full-year net profit after tax but declared a special dividend.
The numbers: ARB shares were up 1.1% to $36.76 at 11am AEST, having dropped 9.5% since the turn of the year.
The group reported $97.5 million in net profit after tax for the 2025 financial year, down from $102.7 million in FY24. Revenue grew 5.8% year on year to $739 million.
ARB declared a final dividend of 35 cents per share, flat with last year's payout. Total dividends for the year came to $1.19 per share, including a special dividend of 50 cents per share, marking a 72.5% increase year over year.
The context: ARB said full-year sales were boosted by a 16.4% jump in sales to export markets, with gains recorded in all regions. The company's international sales offices in New Zealand, Europe, Thailand and the Middle East all posted revenue growth in FY25, it said, while ARB increased investment in its US-based associate ORW and opened a head office and distribution centre in Dubai.
However, sales to the Australian aftermarket and original equipment manufacturers were roughly flat year on year, and negatively impacted by lower new vehicle sales and inflationary pressures constraining consumer discretionary spending.
ARB noted that the decline in profitability, despite the sales uplift, was due to "a number of factors including the impact of the historically weak Australian dollar against the Thai Baht, the introduction of US import tariffs, initial equity accounted losses from associates and increased investment in key areas across the business to accommodate future growth”.
The source: ASX
