ARB Corporation Ltd (ASX:ARB) goes ex-dividend on 8 October 2026 for a final dividend of 35.0 cents per share. The dividend is fully franked at 100%, with a record date of 9 October 2026 and a payment date of 23 October 2026. Shareholders holding ARB shares before the ex-date are expected to be eligible, while those buying from 8 October onward will not receive the payment. Together with the interim dividend of 34.0 cents paid on 17 April 2026, total FY2026 ordinary dividends are 69.0 cents per share, fully franked. The company's Dividend Reinvestment Plan and Bonus Share Plan will operate for the final dividend.

The record date of 9 October follows the ex-date by one business day, and shareholders who participate in the Dividend Reinvestment Plan or Bonus Share Plan will receive their entitlement in accordance with their elections. ARB has paid total fully franked dividends of $6.08 per share over the past 10 years, and its net profit after tax has grown at an average compound rate of 6.9% over that period.

Company Overview

ARB Corporation is the largest aftermarket four-wheel drive accessories business in Australia. It designs, manufactures, sells and distributes 4x4 accessories, including bull bars, suspension, canopies and other products, through operations in all Australian states and territories and in the United States, Thailand, New Zealand, the United Arab Emirates, the United Kingdom, Czechia, China and South Africa. ARB sells to more than 100 countries through its international distribution network. The company was incorporated in 1975 and has been listed on the ASX since 1987.

Recent Developments

ARB released its Appendix 4E and annual results for the year ended 30 June 2026 on 25 August 2026. Key figures include:

  • Sales revenue declined 3.8% to $702.0 million.
  • Profit before tax was $123.0 million, down 8.9%.
  • Net profit after tax was $92.4 million, down 5.2%.
  • Underlying net profit, adjusting for non-operating items, was $89.0 million, down 7.5%.
  • The final dividend was 35.0 cents per share, fully franked, taking total FY2026 dividends to 69.0 cents.

By sales category, Australian Aftermarket accounted for 55.6% of sales and declined 3.3%, Exports represented 38.2% and grew 0.5%, and Original Equipment made up 6.2%, down 27.2%. ARB said Australian Aftermarket sales were affected by lower new 4x4 vehicle sales, which were influenced by vehicle availability and inflationary pressure on discretionary spending. Sales of Australia's two most popular 4x4 vehicles, the Ford Ranger and Toyota HiLux, both fell 4%. However, ARB said its sales were less affected than the industry-wide decline, reflecting its new vehicle application program and ability to bring accessories to market quickly.

Non-operating items included an after-tax gain of $2.1 million on the sale of two retail properties and a $1.35 million fair value adjustment on the MITS Alloy contingent consideration. ARB said its outlook remains positive, supported by healthy demand, improving supply of key vehicle platforms, a product pipeline and expanding engineering capacity. Its order book remains healthy and daily sales order intake remains high. The company sees the US market as a positive long-term opportunity, supported by investment in 4WP, and expects improving vehicle supply into export markets, including the UK and New Zealand.

Sector Context

Automotive aftermarket businesses depend on new vehicle sales, consumer discretionary spending and the popularity of specific vehicle models. In Australia, 4x4 utes and SUVs are among the best-selling vehicles, providing a large market for accessories. Vehicle supply constraints, model changes and economic conditions can affect demand.

International markets offer growth opportunities but require investment in distribution, engineering and product development for different vehicle platforms. Currency movements affect export competitiveness and margins. Companies with vertically integrated manufacturing may have more control over quality and supply but face cost inflation in materials and labour.

The global 4x4 accessories market is influenced by the popularity of utes and SUVs, as well as outdoor recreation trends. In the United States, demand for off-road accessories has grown as consumers invest in vehicles for outdoor activities. Manufacturers that can quickly develop products for new vehicle models often gain an advantage when those models are released.

Risks

ARB's sales and profit declined in FY2026, reflecting weaker new 4x4 vehicle sales and lower Original Equipment sales. Continued pressure on discretionary spending could weigh on demand. The company depends on vehicle manufacturers' supply and model release timing. International expansion, including in the US, involves investment and execution risks. Currency movements may affect export earnings. Future dividends depend on earnings, and share prices typically adjust on the ex-dividend date.

Original Equipment sales fell sharply in FY2026, and this channel depends on relationships with vehicle manufacturers and their production schedules. Competition from lower-cost accessory manufacturers may also affect pricing.

Catalysts to Watch

Investors may watch for payment of the final dividend on 23 October 2026, trading updates at the annual general meeting, and trends in new 4x4 vehicle sales. Progress in the US market, new products from the engineering centre and export growth may also be relevant.

Commentary on the order book and daily sales order intake, which the company described as healthy and high, may also provide insight into near-term demand. Updates on the company's investment in 4WP and ORW USA may be relevant to its US growth strategy.

Developments in UK and New Zealand export markets, where vehicle supply is expected to improve, may also be followed.

Summing Up

ARB Corporation's fully franked final dividend of 35 cents goes ex on 8 October, with payment on 23 October. FY2026 results showed lower sales and profit, while management maintained a positive outlook supported by its order book.