How Did Amotiv (ASX:AOV) Deliver FY26 Guidance While Returning More Cash to Shareholders?

Sonal Goyal

11 October 2026 02:25 PM AEDT

How Did Amotiv (ASX:AOV) Deliver FY26 Guidance While Returning More Cash to Shareholders?

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Automotive aftermarket groups report results shaped by volumes, pricing, margins and Capital management. Amotiv Limited (ASX:AOV) released its FY26 results for the year ended 30 June 2026 on 11 August 2026.

Company overview

Amotiv Limited (ASX:AOV) is an automotive aftermarket group whose businesses include filtration within its powertrain, trailering and 4WD operations, and its Amotiv 2030 Strategy.

FY26 results

Revenue grew 2.7% to A$1,023.9 million, mainly through Volume in filtration within PTU, 4WD wins and pricing. Gross Margin was 42.8%, down 1 percentage point, with pricing improving margins through H2. Underlying EBITA was A$195.1 million, up 1.6% and in line with guidance, and underlying NPATA was A$120.3 million.

Statutory NPAT was A$75.1 million compared with a statutory loss of A$106.3 million in FY25, which included a A$190 million Impairment of APG.

Cash, Leverage and returns

Cash conversion was 93.1%, and net Debt to adjusted EBITDA fell to 1.85 times from 1.91 times. The company completed its share buyback and increased dividends, with a full-year Dividend of 43.0 cents, up 6.2%. Total cash returned to shareholders in the year was A$74.8 million, and ROCE improved 0.3 percentage points to 13.4%.

FY27 outlook

Amotiv expects modest Revenue and underlying EBITA growth in FY27, with growing offshore revenue, pricing and Amotiv Unified benefits offsetting subdued Australian and New Zealand conditions. It continues to implement its Amotiv 2030 Strategy.

Business mix and pricing

Revenue growth was driven by volume in filtration within PTU (powertrain, trailering and underbody units), 4WD wins reflecting product development and geographic diversification, and pricing. Underlying EBITA growth was primarily driven by offshore revenue in LPE, ANZ PTU growth and Amotiv Unified, partly offset by lower 4WD margins because of pricing timing.

Gross margin fell 1 percentage point to 42.8%, but pricing actions improved margins through H2.

Capital management and cash

Cash conversion of 93.1% supported lower leverage and Shareholder returns of A$74.8 million, including completion of a share buyback and higher interim and full-year dividends. Underlying EPSA was 89.4 cents, up 4.5%, and basic EPS was 55.8 cents compared with a loss per share of 76.4 cents a year earlier.

Sector backdrop

Automotive aftermarket Demand depends on vehicle parc, consumer spending and trade activity, and 4WD accessories are sensitive to pricing and discretionary demand.

Underlying measures exclude certain items and are non-IFRS, so reconciliation to statutory results matters.

Amotiv’s results illustrate how underlying and statutory measures can diverge. The prior-year statutory loss included an impairment of A$190 million, while FY26 statutory NPAT of A$75.1 million reflects a return to profit after that charge, whereas underlying NPATA moved from A$119.1 million to A$120.3 million.

Shareholder returns of A$74.8 million in the year were funded from operating cash flow, supported by 93.1% cash conversion, and leverage fell to 1.85 times, below the prior 1.91 times. The company’s FY27 outlook describes modest growth in revenue and underlying EBITA, with growing offshore revenue, pricing and Amotiv Unified benefits offsetting subdued ANZ conditions. Readers should review the investor presentation referenced in the release for the cash flow conversion and leverage calculations.

Aftermarket parts suppliers benefit from an ageing vehicle parc and discretionary accessory spending, and rely on retail and trade channels. Statutory results can be influenced by impairments, as in FY25.

Net debt to adjusted EBITDA is a covenant-based leverage measure.

Risks shareholders should weigh

Gross margin declined, and 4WD margins were lower because of pricing timing.

ANZ conditions are described as subdued for FY27.

Underlying measures are unaudited and non-IFRS.

Underlying figures exclude acquisition-related inventory step-ups and significant items and are unaudited.

Subdued ANZ conditions could limit growth in FY27.

What’s next

Amotiv will continue its strategy with modest growth targets. Shareholders may wish to watch for trading updates and dividend payments.

FAQs

Q: What was Amotiv’s underlying EBITA?

A:A$195.1 million, up 1.6%.

Q: What was the full-year dividend?

A:43.0 cents per share, up 6.2%.

Q: What was leverage?

A:1.85 times net debt to adjusted EBITDA.

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