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ARB Corporation
(Sydney:ARB)
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Rating:64Neutral
Price Target:
AU$21.50
▲(19.58% Upside)
Action:Reiterated
Date:02/25/26
The score is anchored by solid financial quality (strong balance sheet, generally healthy cash generation). It is held back primarily by weak technical momentum (price well below key moving averages and negative MACD). Valuation and dividend are moderate, while the latest earnings call was mixed—near-term margin/earnings pressure but credible levers for H2 improvement (hedging, pricing, improving order book, and strong U.S. growth).
Positive Factors
Strong balance sheet & cash
Zero net debt and robust operating cash flow provide durable financial flexibility to fund capex, pay dividends, and support international expansion. This positions ARB to absorb cyclical auto aftermarket volatility, invest in growth initiatives, and execute H2 recovery plans without refinancing risks.
Negative Factors
Profit decline & margin compression
Material margin erosion and lower PBT reflect input cost pressure and weaker overhead recovery, indicating profitability is sensitive to cost inflation and factory utilization. Until price and hedging actions fully flow through, sustained margin volatility may compress earnings power over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & cash
Zero net debt and robust operating cash flow provide durable financial flexibility to fund capex, pay dividends, and support international expansion. This positions ARB to absorb cyclical auto aftermarket volatility, invest in growth initiatives, and execute H2 recovery plans without refinancing risks.
Read all positive factors
ARB Corporation (ARB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.70B
Dividend Yield5.78%
Average Volume (3M)303.92K
Price to Earnings (P/E)18.8
Beta (1Y)1.66
Revenue Growth1.80%
EPS Growth-14.08%
CountryAU
Employees1,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.07
Shares Outstanding83,660,080
10 Day Avg. Volume235,887
30 Day Avg. Volume303,918
Financial Highlights & Ratios
PEG Ratio-4.95
Price to Book (P/B)3.58
Price to Sales (P/S)3.71
P/FCF Ratio36.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$22.59Price Target Upside25.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.11
Revenue Forecast (FY)AU$766.21M
ARB Corporation Business Overview & Revenue Model
Company Description
ARB Corporation Limited is a leading enterprise engaged in the design, manufacturing, distribution, and retail of a comprehensive range of vehicle accessories and light metal engineering products. The company's diverse portfolio addresses various ...
How the Company Makes Money
ARB makes money primarily by selling 4WD accessories and related automotive products through a mix of wholesale and retail channels. A core revenue stream is the wholesale supply of ARB-branded products (and potentially other distributed products)...
ARB Corporation Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong international momentum (notably 26.1% U.S. growth), successful strategic investments (ORW/4 Parts integration, eCommerce launch, product relaunches) and a healthy balance sheet with no debt were clear positives. However, material margin pressure and earnings declines driven by Thai baht translation effects, lower factory overhead recoveries, a 38.2% drop in OEM sales, weakened new vehicle volumes in key models and fitment constraints materially impacted H1 profitability. Management actions (hedging, pricing, continued investment, and U.S. expansion) and a positive order book support the expectation of H2 improvement, leaving the overall tone balanced between meaningful operational/market headwinds and credible recovery levers.Positive Updates
Strong U.S. Growth
U.S. sales grew 26.1% in the half, driven by strategic relationship with Toyota U.S., eCommerce in the U.S., and growth through ORW/4 Wheel Parts retail networks.
Negative Updates
Profit Decline and Margin Compression
Reported profit before tax fell 18.8% to $57.1 million and underlying PBT declined 16.3%; reported profit after tax declined 17.2% to $42.2 million; earnings per share down 17.9%. Reported PBT margin was 15.8% of sales versus 19.4% last year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong U.S. Growth
U.S. sales grew 26.1% in the half, driven by strategic relationship with Toyota U.S., eCommerce in the U.S., and growth through ORW/4 Wheel Parts retail networks.
Read all positive updates
Company Guidance
Guidance: ARB expects H2 FY2026 sales margins to be broadly in line with H1 after largely hedging Thai baht exposure at slightly more favourable rates and with factory overhead recoveries forecast to be consistent with H2 FY2025, and management expects H2 financial performance to improve relative to H1 and trade closer to the prior corresponding period in absolute dollars; a ~3% average price rise taken in February should flow through in late April–June and the company continues to target 20% profit‑before‑tax-to-sales. Key half‑year metrics: sales $358.0m (‑1%), reported PBT $57.1m (‑18.8%; underlying PBT down 16.3%), reported PAT $42.2m (‑17.2%), PBT margin 15.8% (vs 19.4% prior), EPS down 17.9%; Australian aftermarket ‑1.7% (56.9% of sales), export +8.8% (U.S. +26.1%; ARB USA = 43% of export sales), OEM sales ‑38.2% (‑$11.2m); materials & consumables used 43.7% of sales (vs 41.4%), gross profit reduction ≈$10.6m, underlying profit down $11.3m (‑16.3%); depreciation +$2.4m (+16%), employee expenses $90.5m (flat); cash $59.4m, no debt, cash from operations $63.9m, capex $11.7m, dividends paid $59.3m (final $0.35 cash $24.2m and $0.50 special $35.1m), interim fully franked dividend $0.34 per share (payout ratio 67.2%), and the open order book was +5% vs Dec‑2024.ARB Corporation Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 726.20M | 729.95M | 693.15M | 671.24M | 694.52M | 623.07M |
| Gross Profit | 192.33M | 414.23M | 208.58M | 356.67M | 220.00M | 337.95M |
| EBITDA | 154.38M | 169.80M | 172.22M | 149.64M | 191.09M | 175.54M |
| Net Income | 88.75M | 97.53M | 102.68M | 88.45M | 122.01M | 112.89M |
Balance Sheet | ||||||
| Total Assets | 869.13M | 904.77M | 792.27M | 724.79M | 704.21M | 658.26M |
| Cash, Cash Equivalents and Short-Term Investments | 59.38M | 69.20M | 56.50M | 44.95M | 52.71M | 84.77M |
| Total Debt | 76.96M | 46.69M | 40.25M | 35.84M | 38.03M | 45.13M |
| Total Liabilities | 134.90M | 148.16M | 132.85M | 117.67M | 148.86M | 172.49M |
| Stockholders Equity | 734.22M | 756.62M | 659.42M | 607.13M | 555.35M | 485.78M |
Cash Flow | ||||||
| Free Cash Flow | 111.84M | 75.03M | 73.33M | 44.53M | 22.27M | 66.57M |
| Operating Cash Flow | 145.98M | 127.95M | 125.28M | 90.40M | 84.61M | 103.17M |
| Investing Cash Flow | -18.89M | -82.98M | -61.81M | -44.98M | -60.62M | -51.01M |
| Financing Cash Flow | -91.41M | -31.26M | -51.93M | -52.27M | -56.69M | -9.34M |
ARB Corporation Technical Analysis
Positive
17.98
Price Trends
18.75
Positive
19.11
Positive
24.16
Negative
Market Momentum
0.55
Negative
66.16
Neutral
71.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARB, the sentiment is Positive. The current price of 17.98 is below the 20-day moving average (MA) of 18.87, below the 50-day MA of 18.75, and below the 200-day MA of 24.16, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 66.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARB.
ARB Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$1.54B | 35.43 | 29.62% | 2.21% | 15.03% | 11.75% | |
64 Neutral | AU$1.70B | 18.79 | 11.91% | 6.51% | 1.80% | -14.08% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | AU$47.76M | 23.53 | 17.94% | ― | 27.41% | 54.55% | |
57 Neutral | AU$209.35M | -51.11 | -1.82% | ― | 18.26% | -600.00% | |
51 Neutral | AU$1.08B | 94.50 | 10.97% | 0.52% | 6.88% | -40.66% | |
47 Neutral | AU$31.86M | -2.96 | -13.84% | ― | -5.57% | 77.42% |
* Consumer Cyclical Sector Average
AU:ARB
ARB Corporation
20.25
-13.56
-40.11%
AU:PWH
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AU:AMA
Ama Group Limited
0.45
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-50.50%
ARB Corporation Corporate Events
ARB Director Shona Faber Increases Equity Stake via On-Market Share Purchase
Jun 17, 2026
ARB Corporation has disclosed a change in the shareholding of director Shona Maree Faber, indicating a modest increase in her direct equity stake in the company. The filing reflects routine governance disclosure under ASX requirements, signalling ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.