ARB Corporation Limited (AU:ARB)
ASX:ARB
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ARB Corporation
(Sydney:ARB)
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Rating:64Neutral
Price Target:
AU$19.50
▼(-5.75% Downside)
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
Low leverage / strong balance sheet
ARB's zero‑debt, equity‑heavy capital structure provides durable financial flexibility. This reduces refinancing and solvency risk, supports continued dividends and M&A, and allows investment in international expansion and retail upgrades without pressuring cash flow over the next 2–6 months.
Negative Factors
Currency and margin pressure
Significant Thai baht appreciation materially increased cost of Thai‑manufactured goods and compressed gross margins. Currency volatility remains a structural risk to cost of goods sold; while hedging can mitigate timing effects, ongoing FX exposure can persistently pressure margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
ARB's zero‑debt, equity‑heavy capital structure provides durable financial flexibility. This reduces refinancing and solvency risk, supports continued dividends and M&A, and allows investment in international expansion and retail upgrades without pressuring cash flow over the next 2–6 months.
Read all positive factors
ARB Corporation (ARB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.54B
Dividend Yield2.1%
Average Volume (3M)303.92K
Price to Earnings (P/E)15.5
Beta (1Y)1.58
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-4.96
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$25.03Price Target Upside21.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.05
Revenue Forecast (FY)AU$731.20M
ARB Corporation Business Overview & Revenue Model
Company Description
ARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The company provides bull bars, side rails and steps, canopies, UTE lids and tub accessories, roof r...
How the Company Makes Money
ARB primarily makes money by selling 4x4/vehicle accessory products and related equipment through wholesale and retail channels. Key revenue streams include: (1) product sales via ARB-branded retail stores (company-owned and/or franchised models w...
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
Negative
20.69
Price Trends
22.42
Negative
26.42
Negative
31.11
Negative
Market Momentum
-0.57
Negative
43.35
Neutral
49.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARB, the sentiment is Negative. The current price of 20.69 is below the 20-day moving average (MA) of 20.72, below the 50-day MA of 22.42, and below the 200-day MA of 31.11, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.38B | 15.48 | 29.62% | 2.15% | 15.03% | 11.75% | |
64 Neutral | AU$1.54B | 15.53 | 11.91% | 2.10% | 1.80% | -14.08% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | AU$274.45M | -101.48 | -1.82% | ― | 18.26% | -600.00% | |
57 Neutral | AU$47.76M | 19.91 | 17.94% | ― | 27.41% | 54.55% | |
51 Neutral | AU$886.06M | 34.87 | 10.97% | 0.53% | 6.88% | -40.66% | |
43 Neutral | AU$31.03M | -1.00 | -13.84% | ― | -5.57% | 77.42% |
* Consumer Cyclical Sector Average
AU:ARB
ARB Corporation
18.37
-13.05
-41.53%
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31.11%
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0.19
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31.10
-9.39
-23.19%
AU:ABV
Advanced Braking Technology Limited
0.12
0.03
33.33%
AU:AMA
Ama Group Limited
0.58
-0.24
-29.27%
ARB Corporation Corporate Events
ARB Corporation Addresses Late Director Interest Filing and Tightens Compliance Controls
Apr 23, 2026
ARB Corporation has disclosed that an Appendix 3Y notice for non-executive director Adrian Fitzpatrick was lodged with the ASX later than required under Listing Rule 3.19A, due to delays in confirming his participation in the company’s divid...
ARB Director Increases Indirect Shareholding via Dividend Reinvestment Plan
Apr 23, 2026
ARB Corporation has disclosed a change in director Adrian Fitzpatrick’s indirect interest in the company’s ordinary shares, reflecting incremental acquisitions through the firm’s dividend reinvestment plan. The director’s i...
ARB Director Fraser Increases Stake via Dividend and Bonus Share Plans
Apr 21, 2026
ARB Corporation has reported a change in director Robert Darius Fraser’s holdings following his participation in the company’s Bonus Share and Dividend Reinvestment Plans. Fraser increased his direct stake from 7,962 to 8,096 ordinary ...
ARB Corporation Expands Share Base With New Dividend Plan Issue
Apr 17, 2026
ARB Corporation Limited has applied for quotation on the ASX of 204,624 new ordinary fully paid shares, expanding the pool of tradable equity under its ARB ticker. The newly issued securities, dated April 17, 2026, arise under a dividend or distri...
ARB clarifies dividend and reinvestment pricing for December half-year
Apr 9, 2026
ARB Corporation has updated its dividend notification for ordinary fully paid shares, confirming details for a distribution relating to the six-month period ended 31 December 2025. The update, lodged with the ASX on 10 April 2026, clarifies the di...
ARB Director Andrew Stott Increases Indirect Shareholding via On-Market Purchase
Mar 12, 2026
ARB Corporation has disclosed a change in the indirect shareholding of director Andrew Stott, who holds interests through AJ Stott Finance Pty Ltd and the Stott Promotions Superannuation Fund. His indirect stake increased from 5,000 to 8,000 ordin...
ARB Holds Dividend as Profit Falls and US Growth Offsets Domestic Softness
Feb 23, 2026
ARB Corporation reported first-half FY2026 sales revenue of $358.0 million, down 1.0% year on year, with profit after tax falling 17.2% to $42.2 million as earnings were pressured despite relatively stable top-line performance. Excluding one-off i...
ARB Half‑Year Profit Falls but Dividend Held as Core Operations Stay Resilient
Feb 23, 2026
ARB Corporation reported a modest 1% decline in sales revenue to $357.98 million for the half year ended 31 December 2025, with total revenues from ordinary activities down 1.2% year on year. Net profit attributable to members fell 17.2% to $42.17...
Mitsubishi UFJ Exits Substantial Holder Position in ARB Corporation
Feb 20, 2026
Mitsubishi UFJ Financial Group, Inc. has lodged a notice stating it has ceased to be a substantial shareholder in ARB Corporation Limited. The filing details numerous small transactions in ARB shares executed on 12 February 2026 by an entity contr...
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.