Highlights

  • ARB recorded AUD 702 million in FY26 sales revenue, down 3.8%, amid weaker vehicle-related demand.
  • The manufacturer maintained 69 cents per share in fully franked annual dividends despite lower reported earnings.
  • Exports generated AUD 268.4 million in revenue, supported by growth in North America and Asia.
  • Management advanced new Manufacturing lines and international distribution initiatives ahead of the coming financial reporting periods.

A new vehicle model cycle and export expansion are unfolding against a softer sales base at ARB Corporation Limited (ASX:ARB). The four-wheel-drive accessories maker reported lower Revenue and profit in FY26, with original equipment sales particularly affected by vehicle availability. Its next reporting periods will bring new manufacturing capacity, dealership initiatives and OEM Supply plans into focus.

The Product Network Behind Revenue

ARB designs, manufactures and distributes accessories for four-wheel-drive vehicles and light commercial utes. Its range includes bull bars, roof racks, suspension, canopies, driving lights, awnings, drawers and differential lockers. Products are sold to retail customers through ARB-branded stores and independent stockists, to vehicle manufacturers as factory-fitted options, and to export distributors.

Three revenue streams matter most. The Aftermarket Business serves owners who modify vehicles after purchase. The original equipment (OE or OEM) channel supplies accessories fitted at, or arranged through, the manufacturer. Exports go to overseas distributors, with the United States a key growth market.

Because accessories are often bought alongside a new vehicle, ARB's fortunes are closely tied to new four-wheel-drive sales, and to the availability of a handful of popular models in particular.

FY26 Numbers Reflect Vehicle Supply Constraints

For the year ended 30 June 2026, ARB reported sales revenue of $702.0 million, down 3.8 per cent. Net profit after tax was $92.4 million, down 5.2 per cent, and basic Earnings per share were $1.11, down 5.9 per cent. The company said that excluding one-off items the profit decline was 7.5 per cent. Results were released on 25 August 2026.

The weakest area was OEM, where sales fell 27.2 per cent. The company pointed to a lull between model cycles and supply constraints on key utes, including the Ford Ranger and Toyota HiLux. Management also cited weaker consumer spending and fewer new vehicle sales.

Export sales edged up 0.5 per cent to $268.4 million, or 38.2 per cent of the total. North America and Asia grew, led by the United States, while the United Kingdom and New Zealand declined.

Dividends and First-Quarter Trading

ARB finished the year with $47.9 million in cash and no debt. Net cash fell by $21.3 million, largely because of the special Dividend paid during the period. Capital Expenditure on property, plant and equipment was $36.6 million.

Fully franked dividends totalled 69 cents per share, unchanged from the prior year, comprising a 34 cent interim payment and a 35 cent final dividend. The final dividend was payable on 23 October 2026. Holding the payout while profit eased is a sign of board confidence, though it also means the dividend consumed a larger share of earnings.

At the Annual General Meeting on 15 October 2026, ARB gave an early read on the first quarter of FY27. Sales declined 6.1 per cent, although unaudited profit before tax grew. In other words, volumes remained under pressure while margins and cost control helped earnings.

Manufacturing Projects and Regional Expansion

Management has outlined several initiatives. It plans to expand the Australian and New Zealand aftermarket through its Preferred Partner Program and new or upgraded stores. It aims to deepen OEM partnerships, with Toyota supply expected to improve in the first half of FY27 and new United States OEM contracts due to start from FY28.

Internationally, ARB has opened operations in China and begun direct wholesale operations in South Africa, while building on its United States distribution. It is also investing in capacity, including a new roller drawer line, with production expected to start in the second quarter of FY27, and a new Thailand coating line, expected in the third quarter. The Thai baht is hedged through February 2027.