Highlights

• FY26 sales revenue declined 3.8% to $702.0 million, while net profit after tax fell 5.2% to $92.4 million.
• Export revenue increased 0.5% to $268.4 million, supported by strong growth in the US and Asia.
• A fully franked final dividend of 35 cents per share was announced, with payment scheduled for 23 October 2026.

Challenging Market Conditions Weigh on FY26 Performance

ARB Corporation Limited (ASX: ARB) delivered a resilient FY26 result despite softer new vehicle sales, subdued consumer spending and a challenging economic and geopolitical backdrop. The company reported sales revenue of $702.0 million, down 3.8% from FY25, while reported profit before tax declined 8.9% to $123.0 million. Net profit after tax decreased 5.2% to $92.4 million, with lower sales volumes contributing to the earnings decline.The second half showed signs of improvement, with reported profit before tax increasing 1.9% compared with the corresponding period, following an 18.8% decline in the first half. Management said stronger performance in the second half helped restore margins closer to FY25 levels despite foreign exchange and broader market pressures.

International Markets Provide Support

Export operations remained an important source of resilience. Export revenue reached $268.4 million, edging 0.5% higher, with the US emerging as the key growth market. US sales increased 13.5% in US dollar terms, supported by wholesale, e-commerce, OEM and other channels. The Poison Spyder brand also recorded strong demand following its relaunch.Australia remained more challenging, as sales of major 4x4 vehicles declined and constrained availability of several Toyota models affected demand. Management expects FY27 vehicle sales to be broadly similar to FY26, with potential upside from improved Toyota supply.

Shareholder Returns Remain a Focus

ARB Corporation declared a fully franked final dividend of 35 cents per share, highlighting its continued focus on delivering returns to shareholders.  The company’s FY26 dividend distributions include the 34-cent interim dividend and the newly announced final payment, reinforcing its focus on returning capital to shareholders.With international expansion continuing and the US business delivering double-digit growth, ARB enters FY27 with opportunities to offset softer conditions in its Australian market. The company’s performance will remain closely linked to new vehicle availability, consumer spending and conditions across its major international markets. 

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