ARB Corporation Limited (ASX:ARB) Share Price, Latest Announcements and 2026 Outlook

Published: 4 December 2025 – All figures in AUD unless stated otherwise.

ARB Corporation (ASX:ARB) share price today

ARB Corporation Limited (ASX:ARB), the 4×4 accessories manufacturer behind the ARB brand, is trading around $32.8–$33.0 per share on 4 December 2025, near the lower half of its 52‑week range of $27.15 to $41.96. ^[1]

This puts ARB’s market capitalisation at roughly $2.7–$2.8 billion, based on around 83–84 million shares on issue. ^[2]

Over the past 12 months, the share price has fallen a little over 20%, underperforming both the broader ASX 200 and the consumer discretionary sector. ^[3]

The slide has been particularly noticeable since October, when ARB was trading close to $39–$40 ahead of its final dividend and AGM; shares are now roughly 15–20% below those levels. ^[4]

Despite this, the company maintains a strong balance sheet, a global growth strategy and rising dividends – which is why brokers and valuation models remain broadly constructive on the stock.

New December ASX announcements: incentives, CEO pay and fresh securities

The early days of December 2025 have brought a cluster of price‑sensitive announcements for ARB, all centred on executive incentives and capital structure.

CEO remuneration increase

On 1 December 2025, ARB’s board announced an increase in the fixed remuneration (salary plus superannuation) of CEO Lachlan McCann from $1.255 million to about $1.39 million, effective 1 October 2025. ^[5]

The company emphasised that all other material terms of the CEO’s employment contract remain unchanged, framing the move as an adjustment to reflect responsibilities and market benchmarks rather than a structural overhaul of incentives. ^[6]

For investors, this raises the usual governance questions: is pay growth aligned with shareholder value creation? Given ARB’s long‑term compounding track record but softer earnings in FY25, some will see this as a bet on continued international expansion rather than a reward for a bumper year.

Issue of performance rights to senior executives

On the same day, ARB lodged an “Issue of Performance Rights under Long Term Incentive Scheme” with the ASX. The company granted performance rights to members of senior management, including the CEO, under its executive performance rights plan. ^[7]

A follow‑up “Proposed issue of securities – ARB” announcement dated 2 December 2025 detailed a proposed issue of 22,739 performance rights as part of this plan. ^[8]

With over 83 million shares on issue, this represents a very small potential dilution – roughly 0.03% if all rights vest and convert. ^[9]

From a governance and valuation perspective, the key question is not dilution (which is negligible), but whether performance hurdles are sufficiently demanding to justify the extra equity.

Active institutional trading: MUFG becoming and ceasing as a substantial holder

November and early December filings show Mitsubishi UFJ (MUFG) and related entities repeatedly becoming and ceasing to be substantial holders in ARB. ^[10]

These filings suggest:

Ongoing institutional interest and trading around ARB, rather than a clear directional view.
Some re‑balancing of positions as the share price has drifted from the high‑30s to low‑30s since October.

For retail investors, the takeaway is that professional money is still very much engaged in the stock around current levels.

FY25 results: modest revenue growth, softer profit, still‑solid fundamentals

ARB’s latest full‑year numbers, for the year ended 30 June 2025 (FY25), show a business still growing the top line but wrestling with margin pressure and higher costs.

According to the FY25 Appendix 4E, shareholder letter and subsequent AGM commentary: ^[11]

Revenue:
- FY25 sales revenue: $729.9 million, up 5.3% on FY24.
Profitability:
- Reported profit before tax (PBT): $134.9 million, down 4.6% year‑on‑year.
- Net profit after tax (NPAT) declined around 7–8%, with EPS (earnings per share) reported at about 116 cents, down roughly 8% from FY24.
Margins:
- Gross margins remain healthy, but operating margins have been squeezed by:
  - Higher staff costs
  - Increased advertising and brand investment
  - Higher occupancy and network expansion expenses
Half‑year trend (1H FY25, six months to 31 December 2024):
- Revenue $361.7 million, up 5.9% on the prior corresponding half.
- Profit before tax and profit after tax were slightly down, with EPS a touch lower year‑on‑year. ^[12]

AGM commentary in October highlighted that, while FY25 was “challenging”, ARB still delivered: ^[13]

Sales growth across all export regions,
A 10‑year NPAT compound annual growth rate (CAGR) of about 8.3%, and
Ongoing investment in manufacturing, engineering and product development.

Inventory and cash flow

One watch‑point for analysts has been inventory and cash conversion:

Inventory at 30 June 2025: about $249 million, a substantial build linked to broader product range, new contracts (including Toyota in the U.S.) and global expansion. ^[14]
1H FY25 operating cash flow fell to around $45.9 million from over $70 million a year earlier, largely due to this inventory build and currency effects. ^[15]

ARB remains debt‑free, but investors are watching closely to see how quickly that inventory converts back into cash as new channels ramp up. ^[16]

Dividend profile: sharply higher FY25 payout

If FY25 margins were under pressure, the dividend story was emphatically positive.

From ARB’s August 2025 results and subsequent notices: ^[17]

The company declared a fully franked final dividend of 35 cents per share, paid on 17 October 2025, with an ex‑dividend date of 2 October 2025. ^[18]
FY25 also included a special fully franked dividend of 50 cents per share, reflecting strong cash generation and a conservative balance sheet. ^[19]
Total fully franked dividends for FY25 reached 119 cents per share, up around 72–73% compared with FY24. ^[20]

At a share price around $32.8, that FY25 payout equates to a trailing yield of roughly 3–4%, depending on which data provider and time window you use. ^[21]

The key question for income‑focused investors is whether such an elevated dividend is repeatable or partly a one‑off (because of the special dividend). Consensus expectations for 2026 point to a more normalised, but still healthy, payout.

What brokers and models say: ARB share price forecast and valuation

Analyst price targets and ratings

Across major brokers and data platforms, ARB currently carries a generally positive but not euphoric rating profile:

Data compiled by one major platform shows an average 12‑month price target around $40.5, implying roughly 23% upside from the current share price, with a high target of about $47.5 and a low near $35. ^[22]
That same dataset notes 9 analysts rating ARB as “Buy” and 1 as “Sell”, producing an overall consensus of “Buy” / “Moderate Buy”. ^[23]
Ord Minnett has reiterated a Buy rating on ARB, with price targets in the low‑to‑mid $40s depending on the update, arguing that store investment, acquisitions (including MITS Alloy) and global expansion should offset softer vehicle sales. ^[24]
UBS upgraded ARB from Sell to Neutral in August 2025, citing rebased margin expectations, stabilising domestic vehicle sales and ongoing U.S. investment as reasons for a less bearish stance. ^[25]

Fundamental valuation: DCF and multiples

Independent valuation work broadly points to “around fair value to modestly undervalued” at current levels:

A detailed discounted cash flow (DCF) analysis from April 2025 estimated ARB’s fair value at about $31.7 per share when the stock traded around $31.0, suggesting fair value at that time. ^[26]
A more recent DCF‑based estimate (referenced in November commentary) pegs fair value closer to $37.3, implying some undervaluation relative to the current low‑30s price. ^[27]
On simple multiples, ARB currently trades on:
- A P/E ratio in the high‑20s based on trailing earnings. ^[28]
- A price‑to‑sales ratio around 3.7–3.8, for annual revenue of roughly $734 million. ^[29]

That is not a “deep value” multiple. Investors are still paying a premium for quality, brand strength and global growth, rather than buying a distressed cyclical.

Technical indicators: short‑term caution

On the technical side, some platforms classify ARB as “Sell” or “Strong Sell” on daily and weekly indicators after its recent slide from the high‑30s. ^[30]

For shorter‑term traders, that reflects:

Downward momentum since October
Volatility in response to earnings and ASX announcements
Broader risk‑off sentiment in parts of the consumer and auto complex

Long‑term investors, however, tend to focus more on fundamentals and structural growth.

Business model and growth strategy: from local bull bars to global 4×4 platform

ARB is no longer just a local manufacturer of bull bars. It has become a vertically integrated 4×4 accessories group with global reach. The company: ^[31]

Designs, manufactures and distributes 4×4 and SUV accessories – including bull bars, canopies, roof racks, suspension, lighting, recovery gear and touring accessories.
Operates across multiple geographies:
- Australasia (Australia and New Zealand)
- North America, particularly the United States
- Thailand (manufacturing)
- Middle East, Europe and UK

Recent strategy highlights include: ^[32]

Export growth:
- Exports now account for roughly one‑third or more of total sales, with double‑digit growth in FY25 across Asia‑Pacific, Europe, the Middle East and the Americas.
U.S. expansion:
- ARB increased its stake in Off Road Warehouse (ORW) from 30% to 50%.
- ORW acquired 4 Wheel Parts (4WP), expanding its U.S. retail footprint from 11 to over 50 stores, making the combined group one of the largest dedicated 4×4 accessory retailers in the U.S.
- ARB is supplying both original equipment (through Toyota) and aftermarket products into this network.
Network and brand investment:
- Around 75 ARB‑branded stores in Australia and New Zealand, with additional flagship sites planned.
- Ongoing program of store refurbishments and conversions from stockists to exclusive ARB outlets.
Acquisitions and capacity:
- Acquisition of MITS Alloy in Newcastle to deepen metal‑fabrication capabilities.
- Ongoing purchases of individual 4×4 retail outlets in Australia and New Zealand.
- A new Middle East distribution centre in Dubai to support growth in that region.
Balance sheet discipline:
- ARB remains largely debt‑free, funding expansion through internal cash flows and modest use of equity incentives.

This strategy is designed to gradually de‑link ARB from purely Australian auto cycles and reposition it as a global niche brand leveraged to off‑road and adventure trends worldwide. ^[33]

Macro and sector context

ARB operates at the crossroads of several macro themes:

Consumer discretionary spending: demand for 4×4 accessories is tied to household wealth, confidence and appetite for leisure travel. Slower economies or higher interest rates can drag on sales. ^[34]
New vehicle sales: ARB’s aftermarket revenue is influenced by the installed base of 4×4 and SUV vehicles. Recent declines in Australian new vehicle sales have been a headwind, partially offset by export growth. ^[35]
Currency movements:
- A weaker AUD can support export competitiveness but raises the cost of imported components.
- FY25 commentary flagged FX as a potential second‑half headwind, although earlier freight and price increases provide some buffer. ^[36]
Outdoor and adventure trends: globally, the long‑running trend towards SUVs, dual‑cab utes and outdoor lifestyles continues to underpin demand for accessories in which ARB specialises. ^[37]

Key risks for ARB shareholders

Even high‑quality compounders come with risk. For ARB, key issues to watch include:

Margin pressure and cost inflation
- Staff, marketing and occupancy costs grew faster than sales in FY25, pressuring EBITDA margins despite robust gross margins. ^[38]
- If operating costs continue to rise faster than revenue, EPS growth could lag sales growth for several years.
Inventory and cash conversion
- Elevated inventory levels tied to product expansion, U.S. contracts and global logistics have already dented operating cash flow. ^[39]
- If demand doesn’t materialise as expected, ARB may need to work through stock over a longer period, impacting margins and cash generation.
Cyclical exposure
- While exports help diversify the business, ARB still has meaningful exposure to cycles in vehicle sales and discretionary spending, particularly in Australia. ^[40]
Execution risk in international expansion
- Scaling ORW/4WP, integrating acquisitions like MITS Alloy and building new distribution hubs all involve operational complexity.
- Mis‑steps could weigh on profitability or dilute returns on capital.
Valuation risk
- With a P/E near the high‑20s and a premium to many domestic peers, the market is still pricing in ongoing growth and strong returns. ^[41]
- Any disappointment in earnings, cash flow or global expansion could prompt sharper share price corrections.

Upcoming catalysts in 2026

Looking ahead, several events could move the ARB share price:

1H FY26 (half‑year) results – provisionally expected around February 2026, according to market calendars, will provide the first clear read on: ^[42]
- How quickly inventory is normalising
- Whether export momentum remains strong
- Progress on margins after FY25 cost pressures
Updates on ORW/4WP and U.S. performance – a key swing factor for ARB’s long‑term growth narrative. ^[43]
Further ASX announcements on incentives and share‑based payments – including any vesting of recently issued performance rights. ^[44]

Bottom line: how the ARB story looks on 4 December 2025

As at 4 December 2025, ARB Corporation sits in an interesting spot:

Share price: in the low‑30s, well below recent highs but well above long‑term lows. ^[45]
Business performance: revenue is still growing mid‑single digits, earnings have dipped but remain solid, and the company is investing for long‑term international growth. ^[46]
Capital returns: the FY25 dividend – boosted by a special payment – has been significantly higher than in FY24. ^[47]
Governance and incentives: management pay and performance rights are in focus after early‑December announcements, but the absolute level of dilution is minimal. ^[48]
Market view: brokers mostly see upside of around 20–25% over 12 months, with DCF models pointing to fair value somewhere in the low‑to‑high‑30s depending on assumptions. ^[49]

In short, ARB in December 2025 looks like a quality, globally focused niche manufacturer experiencing a textbook mid‑cycle squeeze: modestly softer earnings and a weaker share price, but with its long‑term strategy intact and its dividend profile newly energised.

References

CSL Limited (ASX:CSL) Share Price on 4 December 2025: Restructuring Fallout, New Vaccine Plant and 2026 Stock Forecast

New ‘Home Orchard’ Guide and FOSS Pathways Science Curriculum Signal Research-Backed Shift in Gardens and Classrooms

Telstra (ASX: TLS) Stock Outlook on 4 December 2025: Share Price, Dividend, Buyback and 2026 Forecasts

ARB Corporation Limited (ASX:ARB) Share Price, Latest Announcements and 2026 Outlook – 4 December 2025