Highlights

  • H1 FY26 Revenue rose 3.3% to AUD 520.5 mn and statutory NPAT increased 39.4% to AUD 46.0 mn.
  • Amotiv lifted its Interim Dividend 8.1% to 20 cents per share.
  • Management targets about AUD 195 mn in FY26 underlying EBITA as the Amotiv Unified program progresses.
  • The 4WD division remains the pressure point after Inflation and delayed pricing compressed margins.

Amotiv (ASX:AOV) is approaching FY26 results with two different stories inside the same portfolio. Its core automotive aftermarket operations are growing steadily, cash conversion has improved and the interim dividend increased. At the same time, the 4WD and trailering Business that triggered a large FY25 Impairment is still working through Margin pressure. That mix explains why the recent share-price recovery has not yet settled the turnaround debate: the market is waiting to see how much of the transformation program converts into recurring Earnings .

Recent Developments

The six months to 31 December 2025 delivered a firmer operating result. Revenue increased 3.3% to AUD 520.5 mn, underlying EBITA rose 1.3% to AUD 98.3 mn and statutory NPAT jumped 39.4% to AUD 46.0 mn. Underlying EPS rose 5.3% to 44.1 cents, while the board increased the interim dividend to 20 cents.

Performance varied by segment. Powertrain and Undercar grew revenue and earnings, Lighting, Power and Electrical improved margins despite roughly flat sales, and the 4WD Accessories and Trailering division grew revenue but recorded weaker earnings as cost inflation ran ahead of pricing.

Why It Matters

Amotiv’s core portfolio benefits from maintenance Demand on Australia’s ageing vehicle fleet, which is generally more defensive than new-vehicle spending. Brands such as Ryco, Narva and Projecta provide established positions across filtration, lighting and power management.

The challenge is proving the 4WD business can recover after the FY25 impairment. Management’s Amotiv Unified program targets about AUD 10 mn in net FY26 EBITA benefits, but US tariffs and higher incentive costs are expected to offset part of those gains. The transformation therefore needs to produce measurable margin improvement rather than only cost-saving targets.

Cash Flow remains important because it shows how much of reported performance is converting into funding capacity.

The Assets described above remain central to the company’s operating and valuation case.

Company Overview

Formerly known as GUD Holdings, Amotiv operates in the automotive aftermarket across three segments: Powertrain and Undercar, Lighting, Power and Electrical, and 4WD Accessories and Trailering. Its portfolio includes brands such as Ryco, Narva and Projecta, while the AutoPacific Acquisition built the group’s towing and off-road exposure.

Financial Snapshot

FY25 revenue was AUD 997.4 mn and underlying EBITDA reached AUD 226.4 mn. A roughly AUD 190 mn non-cash impairment against the AutoPacific business pushed the statutory result to a AUD 106.3 mn loss, even as underlying EPS rose to 85.6 cents. The full-year dividend remained 40.5 cents, fully franked.

The FY25 impairment also changes how the recent numbers should be read. It was a non-cash accounting charge rather than an immediate drain on Liquidity , but it acknowledged that the AutoPacific assets were worth less than previously carried. That places more pressure on management to demonstrate better returns from 4WD and trailering. At the same time, director buying by managing director Graeme Whickman and chairman James Fazzino in early 2026 added a modest internal vote of confidence as the transformation program moved through its next phase.

At the H1 FY26 point, net Leverage was 1.95 times, inside the company’s 1.5–2.25 times target range, and cash conversion improved to nearly 92%. Management expects net debt to decline in the second half, making balance-sheet progress another important part of the FY26 result.

What to Watch

The FY26 full-year result should show whether underlying EBITA reaches the approximately AUD 195 mn target, how much value the Amotiv Unified program has delivered and whether 4WD margins have stabilised.

Net debt, cash conversion, the final dividend and early FY27 commentary will also shape the next phase. A clearer recovery in the 4WD division would reduce the main source of scepticism around the portfolio.

Risks

Amotiv remains exposed to household spending at the discretionary end of the portfolio, Tariff costs, inflation and execution risk in the transformation program. The FY25 impairment also highlights historical capital-allocation risk, while leverage near two times earnings leaves less room if trading weakens.

What Could Turn Amotiv’s Rebound Into A Broader Recovery

Amotiv’s recent recovery is grounded in a stable core business rather than a dramatic earnings acceleration. The defensive aftermarket operations are doing their Job , while the 4WD division and transformation plan remain the swing factors. FY26 results need to show that cost programs, pricing actions and balance-sheet discipline are translating into better group returns.