ARB FY26 results: sales and profit fall but second-half margin recovery steadies the 4x4 accessories giant

A difficult year with a stronger finish

ARB Corporation presented its FY26 results on August 25, 2026, reporting full-year sales revenue of $702.0 million, down 3.8 per cent from $729.9 million, and profit before tax down 8.9 per cent to $123.0 million. Profit after tax fell 5.2 per cent to $92.4 million, with basic earnings per share of $1.11, down 5.9 per cent. Investing.com's coverage of the results presentation noted the declines were set against what management described as a challenging economic and geopolitical environment that softened new 4x4 vehicle sales, particularly in Australia. ¹²⁷⁴

The headline profit figure includes non-operating items. Chief Financial Officer Damon Page said on the earnings call that profit before tax excluding one-off non-operating transactions declined 10.5 per cent to an underlying $118.6 million, a fall almost exclusively attributable to lower absolute gross profit from lower sales volumes. Investing.com's transcript coverage records the non-operating items as including $3 million of gains on property sales and a $1.35 million reduction in contingent consideration relating to the MITS Alloy acquisition. ³⁶⁴

The shape of the year improved markedly as it progressed. According to Investing.com's results coverage, first-half profit before tax declined 18.8 per cent, dragged down by the Australian dollar sitting at historical lows against the Thai baht, where ARB manufactures, while second-half profit before tax grew 1.9 per cent. Chief Financial Officer Damon Page said on the earnings call: "The shape of the result improved as the year progressed. Second half profit before tax grew 1.9 per cent, reflecting the recovery in sales margins." ³⁶

After-tax profit fell less than pre-tax profit because the effective tax rate decreased from 27.7 per cent to 24.9 per cent, which Investing.com's results coverage attributes to a higher proportion of profits being generated in Thailand. Basic earnings per share still declined 5.9 per cent to $1.11. ¹⁴

Gross margin expanded from 56.7 per cent in FY25 to 57.6 per cent in FY26, with materials and consumables as a percentage of sales improving from 43.3 per cent to 42.4 per cent. Management attributed this to two price increases during the year, first by just over 2 per cent and then by 3.5 to 4 per cent, combined with more favourable foreign exchange in the second half. Page said on the call that ARB does not provide formal guidance but expects FY27 margins to trade in line with the FY26 average. ¹⁴

The Australian aftermarket and the new-vehicle squeeze

The Australian aftermarket, ARB's largest channel at 55.6 per cent of total sales, declined 3.3 per cent to $390.1 million. Investing.com's slide-review reporting states the decline mirrored a 4 per cent drop across ARB's key Australian vehicle platforms, with dealer and fleet channels hit hardest by lower new vehicle deliveries and constrained consumer discretionary spending. ¹²⁷

The same coverage details the model-level pressures: the Ford Ranger and Toyota Hilux, the top two selling pickups, each declined about 4 per cent, the Ford Everest fell 9 per cent and the Toyota Prado dropped 10 per cent, while constrained availability of the Prado, LandCruiser Wagon and LandCruiser Pickup weighed on sales throughout the year. Investing.com's results reporting states the steepest decline came on the Toyota LandCruiser Pickup, down 38 per cent from approximately 11,000 to 7,000 units due to supply constraints. The Mitsubishi Triton grew 10 per cent and the new BYD Shark 6 surged 64 per cent from a low base, though CEO Lachlan McCann told the earnings call that the Shark had not yet generated significant customer inquiry for ARB products. ¹⁴⁵

Sales to original equipment manufacturers in Australia fell sharply, down 27.2 per cent to $43.4 million, or 6.2 per cent of total sales. Management characterised this as a temporary lull between major vehicle programs rather than any competitive shift, with a partial recovery already evident as sales improved from roughly $18.5 million in the first half to $25 million in the second, and a stronger recovery expected in FY27 as Toyota improves supply of models core to the OEM business. ¹⁴⁵

Export sales proved more resilient, growing 0.5 per cent to $268.4 million and representing 38.2 per cent of group sales. The United States was the standout, achieving 13.5 per cent growth in USD terms despite tariff and economic headwinds, while Europe, the Middle East and Africa declined 9.4 per cent, with UK double-cab pickup registrations down more than 50 per cent in the second half following tax changes, and regional conflict disrupting Middle East demand. ¹⁴⁵

Dividend held steady and the balance sheet stays debt-free

Despite the profit decline, the board announced a final FY26 dividend of 35.0 cents per share, fully franked at the 30 per cent tax rate and unchanged from the prior year, extending the company's 35-year consecutive dividend payment streak. Investing.com's earnings call coverage notes ARB paid $83.6 million in dividends during the year, including a 50-cent-per-share special dividend carried over from FY25, while still ending the year with $47.9 million in net cash and zero debt. ¹³⁶

Cash flows from operations of $103.7 million broadly equalled profit after tax plus depreciation, and the company invested $36.6 million in property, plant and equipment, split between $24.0 million for property and $12.6 million for plant and equipment. Depreciation rose 9.8 per cent to $35.7 million, reflecting recent property purchases and manufacturing capital expenditure. ¹⁴

Investors reacted to the margin recovery and balance sheet strength rather than the headline declines, sending the stock sharply higher on results day. The size of the gain differs between Investing.com's own reports: its slide-review coverage put the rise at 14.88 per cent to $21.70, while its earnings call transcript coverage reported shares up 16.15 per cent to $21.94, in both cases from a previous close of $18.89. ¹³⁶

Retail network, e-commerce and customer metrics

ARB operates 80 stores nationally, comprising 33 corporate-owned locations and 47 independent franchises. FY26 brought two flagship upgrades and three new flagship sites, including Australia's largest ARB store in Townsville at 3527 square metres, plus the company's first dedicated fleet fitment centre in Auburn, NSW. Management reiterated on the call a pace of three to five new stores a year going forward. ¹³⁴

A major FY26 initiative was migration to a new integrated e-commerce platform supporting product and vehicle-based journeys, with integrated fitment databases, omni-channel transactions including click-and-collect, and analytics driving marketing and product development. ARB maintains its position as the most-visited 4x4 accessory website in Australia, according to its results presentation, with nearly twice as many customers using the site to find local stores. ¹⁷

Customer and workforce metrics improved. The Net Promoter Score rose from an average of 68 to 75 over the 12-month period, and fitter retention reached approximately 70 per cent by June 2026, up from around 60 per cent, with the company actively recruiting fitters across all states. McCann told analysts that improved fitter retention leaves ARB better placed to handle increased vehicle volume, particularly if Toyota supply lifts. ¹⁴

Partnerships, engineering and international expansion

The Ford Licensed Accessories program grew revenue in FY26 even as Ranger sales declined, on higher attachment rates and revenue per vehicle. ARB was first to market with accessories for the new Ford Ranger Super Duty, where it says fitment rates reached the highest ever recorded on any vehicle, and engineering work has commenced for the next all-new Ranger and Everest. McCann said on the earnings call: "Only ARB has the local manufacturing presence and capability to deliver these decisive wins." ¹³⁶

On the Toyota side, ARB developed and launched accessories for the new LandCruiser FJ across Asian, Latin American and African markets, with vehicle and accessory sales exceeding management's expectations, and discussions under way about extending the partnership to other models. ARB has also secured contracts for two future platforms with new US OEMs, which typically carry two-to-four-year development cycles. ¹⁵

ARB announced engineering investment will increase 10 to 15 per cent annually to support a higher cadence of all-new products and faster vehicle applications. The US engineering team completed its first fully US-led development, a suspension for the latest Toyota 4Runner, putting ARB first to market, and the team is collaborating with Australian engineers on platforms including the Tacoma and LandCruiser 250. ¹⁴⁵

Internationally, ARB China Co. Ltd was established as a wholly-owned subsidiary with an official opening in May 2026, and the company is in direct dialogue with every major Chinese manufacturer, having secured and started delivering on Chinese OEM and EV contracts. A direct in-market wholesale operation in South Africa is planned from early FY27. In the UK, the Truckman business has won canopy contracts for future Chinese EV models, which McCann said should help offset the sharp contraction in the UK pickup market. In the US, the 4 Wheel Parts joint venture delivered high double-digit ARB sell-through growth, with eight store-in-store conversions completed and a further 22 due by the end of calendar 2026, on track for full deployment across 47 stores in nine states. ¹⁴⁵

Looking to FY27, management pointed to a solid Australian order book with daily order intake near historical highs, improving supply of key vehicles including the Toyota LandCruiser 70 Series reintroduction and better availability of the Hilux, Prado and LandCruiser 300 Series, continued US growth, and a renewed US e-commerce platform in the first half of FY27. The company did not provide quantitative earnings guidance, and further details on product strategy and international expansion are to be provided at the Annual General Meeting. ¹³⁶

Foreign exchange remains a key variable for the margin outlook given ARB's Thai manufacturing base. According to Investing.com's coverage of the earnings call, Chief Financial Officer Damon Page said ARB is hedged against Thai baht movements until November 2026 at a rate of approximately 23 baht to the Australian dollar, with more hedges to be added in the coming months. Management also flagged rising steel prices and labour cost pressures as factors to watch alongside the baht rate. ⁴³