ARB +3.83%: Tougher conditions domestically in after-market 4wd accessories offset by strong export momentum.
- Sales revenue $361.7 million up +5.9% yoy but around 4% below consensus.
- Net profit of $51.0 million was down -0.6% yoy and slightly lower than $53m expected.
- Interim dividend per share $0.34 flat on last year and below $0.36 expected.
Exports were strong, up ~20% in 2Q25 with a strong level of growth in the US being the main highlight. Australia on the other hand was tougher with aftermarket sales down -1.7% in 2Q25 showing a high level of divergence.
The outlook was a mixed bag, their order book reduced during the half which is indicative of shorter lead times for new vehicles as supply chains issues have eased. Group sales in January 25 were inline with January 24, which is weaker than we hoped (i.e. we were looking for growth), and while the US is doing really well, the deterioration in Australian aftermarket is slightly concerning – let’s hope todays move by the RBA can loosen the wallets of 4wd enthusiasts.
MM likes ARB, adding it to our Emerging Companies Hitlist
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