This article first appeared on GuruFocus .
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Sales Revenue:$358 million, a decline of 1% in the first half of FY 2026.
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Profit Before Tax:Declined 18.8% to $10.1 million; underlying decline of 16.3% after adjustments.
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Profit After Tax:$42.2 million, a decline of 17.2% compared to the previous year.
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Earnings Per Share:Declined 17.9%.
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Australian Aftermarket Sales:Declined 1.7% in the first half.
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US Sales Growth:Increased by 26.1%.
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Export Sales Growth:Increased by 8.8%.
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OEM Sales Decline:38.2% or $11.2 million.
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Retail Store Network:Grew by 4 stores to a total of 79.
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Cash from Operating Activities:$63.9 million.
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Capital Expenditure:$11.7 million on property, plant, and equipment.
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Dividends Paid:$59.3 million, including a $0.35 final dividend and a $0.50 special dividend.
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Cash Holdings:$59.4 million at the end of the half year, with no debt.
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Interim Dividend:$0.34 per share, consistent with last year.
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Release Date: February 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sales into the US market grew by 26.1%, driven by strategic relationships and e-commerce growth.
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ARB's retail store network expanded by four new stores, indicating growth in physical presence.
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Export sales increased by 8.8%, with strong performance in the US and Pacific regions.
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The partnership with Ford continues to flourish, enhancing brand visibility and product attachment rates.
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The launch of a new e-commerce platform in Australia is expected to enhance customer interaction and sales.
Negative Points
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Overall sales revenue declined by 1% in the first half of the 2026 financial year.
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Profit before tax decreased by 18.8%, impacted by lower sales margins and currency fluctuations.
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The Australian aftermarket sales declined by 1.7%, affected by lower new vehicle sales.
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The OEM channel experienced a significant decline of 38.2% due to increased inventory levels and lower vehicle sales.
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The European, Middle East, and African markets saw a decline of 6.9% due to reduced demand in the aid and relief sector.
Q & A Highlights
Q: How does the exchange rate impact ARB's margins going forward? A: Damon Page, CFO, explained that the exchange rate for the Thai Baht has been locked in for the second half of the year at a rate slightly above 21.7. This is expected to maintain consistency with the previous year's second half. A recent price increase of about 3% will also contribute to improved margins in the latter part of the second half.
Q: What is the current status of ARB's product supply to Toyota? A: Lachlan Mccann, CEO, mentioned that limited quantities of ARB products have started to supply to Toyota, including accessories for the FJ Cruiser. However, some products have not yet commenced supply, but the initial supply to Toyota Asia is a positive development.
Q: How does ARB prioritize engineering resources for new vehicle models like the BYD Shark? A: Lachlan Mccann stated that ARB prioritizes models with higher expected accessory attachment rates, such as the Ford Superduty and Toyota Hilux, over the BYD Shark. While ARB recognizes the opportunity with the BYD Shark, resources are allocated based on expected market demand.
Q: Can you elaborate on the softer results within the EMEA region? A: Lachlan Mccann explained that the EMEA region faced challenges due to a major distributor's health issues, which slowed business. This highlighted the need for better succession planning. Additionally, there was a shift from retail to fleet sales, which ARB is addressing with dedicated resources.
Q: What percentage of total export sales does ARB USA currently represent? A: ARB USA represents 43% of total export sales, indicating its significant contribution to ARB's international business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
