ARB 4×4 Accessories reported a 8.9% decline in net profit before tax to $123.0 million for FY26, down from $134.9 million in the prior year, alongside a 3.8% fall in sales revenue to $702.0 million. The result reflects a challenging economic and geopolitical environment that constrained new vehicle sales across multiple markets, particularly Australia, though profitability showed notable resilience with second half profits growing 1.9% compared to the prior corresponding period after a first half decline of 18.8%.
The regional performance reveals a bifurcated market for the 4×4 accessories specialist. Australia, representing 55.6% of total sales, declined 3.3% to $390.1 million as lower new vehicle deliveries and constrained discretionary spending weighed on the aftermarket channel. Export sales, comprising 38.2% of group revenue, managed modest growth of 0.5% to $268.4 million, though this masks significant geographic variation. The United States achieved double-digit growth of 10.2% despite difficult trading conditions, while the UK faced headwinds from lower vehicle registrations and New Zealand and the Middle East experienced challenging conditions. Original equipment sales dropped 27.2% to $43.4 million, entirely attributable to timing of new contracts initiated in FY25, with management expecting recovery in the first half of FY27 as new vehicle deliveries ramp up.
The stability in gross margins and operating expenses relative to FY25, despite lower sales volumes and foreign exchange headwinds, underscores ARB’s operational discipline and the strength of its brand positioning. Management attributed this to strong global brand recognition, higher accessory attachment rates on key vehicles in key markets, and increased revenue per fitment. The effective tax rate improved to 24.9% from 27.7%, benefiting from a higher proportion of profits generated in Thailand. Net profit after tax declined a more modest 5.2% to $92.4 million, translating to basic earnings per share of $1.11, down 5.9%.
Strategic expansion into global engineering and distribution continues to underpin long-term value creation, with the company maintaining impressive decade-long compound annual growth rates of 7.0% in sales and 6.7% in profit before tax from FY16. The divergence between first and second half profit trends signals that management’s operational responses are gaining traction and that market-specific challenges, particularly the Australian slowdown, may be stabilising.
Investors should monitor the trajectory of new vehicle sales in Australia and the strength of discretionary consumer spending in FY27, alongside execution of OEM contract growth and the contribution from expansion markets. The announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About ARB 4×4 Accessories (ASX: ARB)
ARB 4×4 Accessories is an Australian manufacturer of off-road vehicle accessories including bullbars, roof racks, suspension systems, and locking differentials. The company serves customers across Australia, the United States, the Middle East, and Europe. Founded in 1975 and headquartered in Kilsyth, Victoria, ARB is publicly listed on the Australian Securities Exchange.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
