ARB plunges after flagging a 16.3% decline in half year profits for FY26
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The news: Four-wheel drive accessories manufacturer ARB Group reported a 1% decline in unaudited sales revenue for the first half of FY26 to $358 million, compared to the prior corresponding period.
The company also recorded a 1.7% fall in sales across its Australian aftermarket channel, citing ongoing fitting capacity constraints. Sales to Original Equipment Manufacturer (OEM) channels declined 38.2% year-on-year, reflecting the timing of OEM contracts and model releases, as previously outlined at the company's AGM held in October 2025.
However, export sales increased 8.8%, with US sales accounting for 26.1% of total export revenue.
Shares plunged 9.90% to $29.11 per share at 10:57am AEDT.
The context: ARB expects to report half year FY26 underlying profit before tax of around $58 million. This excludes one-off items, including a $1.3 million pre-tax gain from the sale of a property during the half and a $2.2 million pre-tax goodwill impairment related to the termination of the Thule distribution agreement in November. On an underlying basis, profit before tax represents a 16.3% decline from the prior corresponding period.
At its AGM in October 2025, the company said the decline in half-year FY26 profits was driven by lower gross margins due to a weaker Australian dollar against the Thai baht, as well as lower factory overhead recoveries following a material build-up in inventories in the prior year.
As of 31 December, ARB said it held cash of $59.4 million and remained debt free after paying a FY25 final dividend of 35c per share and a special dividend of 50c per share. The company is scheduled to release its half-year FY26 results on 24 February 2026.
The source: ASX
