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Highlights

  • Amotiv shares tumble nearly 20%, marking steepest one-day drop in nearly two years.

  • Company anticipates a dip in FY25 underlying EBITA due to weaker performance in its LPE segment.

  • Despite global headwinds, U.S. tariffs seen as having limited effect on FY25 results.

Shares of Amotiv Ltd (ASX:AOV.AX) slumped by as much as 19.7% on Thursday, hitting AU$7.06—its lowest trading level since 24 October 2022—after the company issued a cautious earnings forecast for the coming fiscal year.

This sharp decline marks the largest single-day percentage drop for the stock since mid-June 2022 and places Amotiv at the bottom of the ASX 200 benchmark index for the day. Investor sentiment took a hit following the company’s latest guidance indicating a projected decrease in underlying earnings before interest, tax, and amortization (EBITA) for fiscal year 2025.

The automotive products and solutions provider attributed the anticipated dip in earnings primarily to subdued performance within its lighting, power, and electrical (LPE) division. More specifically, the company pointed to lower-than-expected demand from Australian resellers in this segment.

"The forecast reflects a marginal pullback in profitability, largely concentrated within the LPE business due to reduced reseller activity in Australia," the company stated.

Despite broader concerns surrounding international trade tensions, Amotiv clarified that U.S. tariffs are not expected to exert any meaningful impact on the group’s financials during the fiscal year. This reassurance may help temper investor anxiety, although it was not enough to prevent Thursday’s market rout.

Analysts say the market reaction underscores the sensitivity of investors to earnings guidance, especially in the current economic climate. “When a company flags a decline—even a modest one—in a key metric like EBITA, the response can be swift,” noted one equity strategist.

The drop also comes at a time when investors are closely monitoring consumer demand trends and supply chain conditions across the automotive sector. Any indication of faltering momentum in key divisions such as LPE is likely to weigh heavily on valuation.