Sydney, Feb 24, 2026, 18:37 (AEDT) — Trading has moved into after-hours.
- ARB dropped roughly 13%, landing at A$21.36.
- Profit before tax for the first half slid almost 19%, with revenue also ticking down.
- The interim dividend stays at 34 cents per share, with April 2 as the record date.
Shares in ARB Corporation Limited tumbled 13.1% Tuesday after the company posted a steep drop in first-half earnings and revealed new headwinds from margin squeeze, blaming currency moves and higher factory outlays. The stock changed hands at A$21.36, down A$3.21 for the session.
Why does it matter? ARB’s profits track vehicle sales and aftermarket appetite, but with much of its product coming out of Thailand, a softer Australian dollar versus the baht eats into margins. Traders are also eyeing whether ARB can loosen fitment and capacity bottlenecks—without chewing up returns in the process.
Management is attempting to soothe concerns about the back half, citing currency hedges and more stable recovery of factory costs. Still, they flagged persistent tightness in new-vehicle supply and lingering uncertainty in consumer sentiment.
ARB reported in a Feb. 24 ASX filing that first-half sales revenue edged down 1% to A$358.0 million. Profit before tax slid 18.8% to A$57.1 million. Net profit after tax fell 17.2%, landing at A$42.2 million. Stripping out one-off items, underlying net profit came in at A$43.2 million—a 14.4% drop.
The company blamed the drop largely on “reduced sales margins” tied to the softer Australian dollar and less factory overhead recovery, pointing out that a lot of its expenses are in Thai baht. According to the company, most of its Thai baht exposure for the second half is hedged at “slightly more favourable” rates, and it’s expecting second-half sales margins to roughly match those from the same period last year.
Damage wasn’t spread evenly. ARB flagged a 1.7% drop in Australian aftermarket sales, blaming softer new-vehicle sales on major platforms and not enough accessory fitment resources. Exports, though, climbed 8.8%, with the U.S. surging 26.1%. Sales to OEMs—the automakers ARB supplies—tumbled 38.2%. The company had expected a slump there, but not to this extent.
The company described demand as stuck rather than gone. Open orders finished the period up 5% from a year ago, it said. Store expansion continued, with more site changes and new openings also on the agenda.
ARB is keeping its interim dividend unchanged at 34 Australian cents per share, fully franked. The record date is April 2, and shareholders are set to receive payment on April 17. Dividend reinvestment and bonus share plans will be available for this interim distribution.
The company pointed to its strong balance sheet—A$59.4 million in cash, zero debt as of Dec. 31. Operating cash flow climbed as well, reaching A$63.9 million for the half.
Looking ahead, ARB is projecting a stronger second half, aiming for results that move nearer to last year’s comparable stretch. The company still calls the Australian aftermarket “challenging,” blaming vehicle supply and fitment issues. Export demand, especially in the U.S., should remain strong, according to ARB, and OEM sales are seen as “marginally better” than the first half.
Australian stocks barely budged on Tuesday, with the S&P/ASX 200 closing flat as traders kept to the sidelines, wary ahead of consumer price figures due Wednesday, according to a Reuters market update.
Still, things could unravel in a few clear ways. A stronger Thai baht, or continued tightness in new-vehicle supply, threatens to stall ARB’s recovery on both margin and volume. And if carmakers keep chipping away at inventory, the OEM slump might just stick around.
