ARB Corporation (ARB) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 2.1%
• Average Volume (3M): 303.92K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.55
• Revenue Growth: 5.31%
• EPS Growth: -5.74%
• Country: AU
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.52
• Shares Outstanding: 83,455,450
• 10 Day Avg. Volume: 235,887
• 30 Day Avg. Volume: 303,918
• PEG Ratio: -4.96
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 36.10
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 10.91
• Enterprise Value/Ebitda: 13.60
• 1Y Price Target: $29.67
• Price Target Upside: 18.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.09
• Revenue Forecast (FY): $748.36M

• Rating: 64 Neutral
• Price Target: AU$23.00 ▼(-7.78% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 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 and strong ROE provide durable financial flexibility. It supports ongoing investment in capacity, M&A or retail rollout while cushioning earnings through cycles, enabling consistent funding of capex, hedging programs and dividends over months.

Export and U.S. expansion

Growing exports and particularly strong U.S. traction (U.S. sales +26% in the half) diversify revenue away from domestic cyclicality. Expanding international channels, partner sales through 4 Wheel Parts and retail openings reduce concentration risk and lengthen the runway for structural top-line growth.

Robust cash generation & capital returns

Consistent operating cash flow and a strong cash balance give ARB durable self-funding for store rollouts, eCommerce investment and product launches. Healthy cash conversion underpins dividends and strategic reinvestment without needing external financing in the medium term.

Negative Factors

Margin compression & profit decline

Significant margin deterioration materially reduced profitability in the half. If input cost pressures, lower overhead recovery or channel mix effects persist, they can structurally depress free cash flow and reinvestment capacity, requiring sustained price or cost actions to restore margins.

Thai baht currency exposure

Material manufacturing exposure to the Thai baht creates recurring gross margin volatility when the currency moves unfavorably. While hedging can manage near-term swings, sustained FX moves raise structural procurement costs or force price increases that can impair competitiveness and demand.

OEM channel weakness & fitment constraints

A sharp drop in OEM sales and ongoing accessory fitment resource shortages limit revenue conversion and increase exposure to vehicle model cycles. Structural dependence on new-vehicle platforms and constrained installation capacity can cap aftermarket growth and delay recovery from demand.

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 racks, cross bars and carriers, suspension systems, driving lights, air compressors and tire accessories, air lockers, winches, recovery equipment and points, under vehicle protection products, fuel tanks and storage, drawers and cargo solutions, slide kitchen, portable fridge freezers, tents, swags and awnings, camping and touring accessories, safari snorkels, dual battery and solar systems, interior protection, and general accessories, as well as rear protection, towing, and wheel carriers. It also offers LINX, a controller that declutters the dashboard and centralizes the command of vehicle accessories by replacing classic switches, gauges, and monitors with one sleek and smart driver interface; and UHF radios, GPS, and reversing cameras. The company serves stockists, vehicle dealers, and various fleet operators. It operates approximately 74 ARB stores, which include 30 company owned stores. The company has operations in Australia, New Zealand, the United States, Thailand, the Middle East, Europe, and the United Kingdom. The company has a strategic partnership with Ford Motor Company to develop a suite of aftermarket products for the Ford Bronco. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.

How the Company Makes Money

ARB generates revenue through the sale of its extensive range of 4x4 accessories and equipment. The company operates through multiple revenue streams, including direct sales to consumers via its retail stores, online sales, and wholesale distribution to automotive retailers and dealerships. Additionally, ARB benefits from export sales to various international markets, where it has established a strong presence. Significant partnerships with automotive brands and participation in industry events further enhance its visibility and sales opportunities. The company's commitment to innovation and quality has also led to a loyal customer base, contributing to repeat business and sustained revenue growth.

ARB Corporation Financial Statement Overview

Summary

Strong overall fundamentals supported by a low-leverage balance sheet (no debt/strong equity position) and generally positive cash generation. Offsetting factors include net margin variability and some historical volatility in free cash flow growth.

Income Statement

ARB Corporation has demonstrated consistent revenue growth over the years, with a slight dip in 2023. The gross profit margin has been stable, indicating effective cost management. However, the net profit margin has seen some fluctuations, which could be a concern. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The return on equity is strong, showcasing effective use of shareholder funds. The equity ratio suggests a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has been robust, with a positive trend in free cash flow growth, especially in the latest year. The free cash flow to net income ratio is healthy, indicating good cash conversion. However, fluctuations in free cash flow growth in previous years suggest potential volatility in cash generation.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 24.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARB, the sentiment is Neutral. The current price of 24.94 is above the 20-day moving average (MA) of 24.82, below the 50-day MA of 28.13, and below the 200-day MA of 33.06, indicating a neutral trend. The MACD of -0.97 indicates Negative momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 87.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ARB.

ARB Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNL	69 Neutral	AU$1.53B	35.81	33.16%	2.15%	15.28%	18.23%
ARB	64 Neutral	$2.08B	24.09	13.51%	2.10%	5.31%	-5.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PWH	61 Neutral	AU$1.01B	88.92	9.47%	0.53%	-6.67%	-60.67%
RPM	57 Neutral	AU$8.99M	5.08	8.25%	―	-5.17%	-19.44%
AMA	56 Neutral	AU$305.68M	-74.71	-4.58%	―	13.54%	66.33%
AOV	51 Neutral	AU$1.02B	-11.56	-12.12%	4.58%	1.04%	-208.03%

ARB Corporation Corporate Events

ARB Holds Dividend as Profit Falls and US Growth Offsets Domestic Softness

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 items, underlying profit after tax declined 14.4% and earnings per share fell to 50.6 cents, yet the board maintained an interim dividend of 34.0 cents per share, fully franked, signalling confidence while using dividend plans to help fund its expansion program.

Australian aftermarket sales slipped 1.7% amid weaker deliveries of several key 4WD models and ongoing accessory fitment constraints, although open orders ended the half 5% above the prior year, pointing to resilient underlying demand. Export sales rose 8.8%, led by a 26.1% surge in the United States supported by its Toyota US partnership, a new US e-commerce platform and the maturing ORW/4WP store network, while ARB continued to expand and upgrade its flagship store footprint in Australia and launched a domestic e-commerce site to advance its omni-channel strategy.

Original equipment sales declined sharply, contributing to the modest overall revenue contraction and shifting the sales mix further toward aftermarket and export channels. Management highlighted upcoming launches, including the Ford Super Duty and new Toyota HiLux, as potential growth drivers in the second half of FY2026, suggesting scope for improved performance if vehicle supply and accessory attachment rates normalise.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Half‑Year Profit Falls but Dividend Held as Core Operations Stay Resilient

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 million, reflecting softer trading conditions and several one‑off items, although the board maintained the interim dividend at 34 cents per share, suggesting confidence in cash generation and balance sheet strength.

Underlying net profit, which adjusts for gains on property sales, the loss from terminating the Thule distribution agreement and prior‑year acquisition transaction costs, declined by a smaller 14.4%, indicating that core operations remain relatively resilient despite margin pressure. Net tangible assets per security edged down slightly to $8.04, signalling a largely stable asset base, while the Thule exit and prior U.S. expansion costs highlight a continued reshaping of ARB’s product portfolio and international footprint with implications for future growth and profitability.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

Mitsubishi UFJ Exits Substantial Holder Position in ARB Corporation

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 controlled by Morgan Stanley, which collectively reduced Mitsubishi UFJ’s relevant interest below the substantial holding threshold, signalling a change in the company’s institutional investor base.

The change in substantial holding status may alter the composition and influence of major shareholders on ARB’s register, though no direct impact on day-to-day operations was indicated. For other investors, the exit of a large institutional holder could affect liquidity and market perception of ARB stock, depending on how the divested shares are absorbed by the market over time.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

Mitsubishi UFJ Exits Substantial Shareholder Position in ARB Corporation

Mitsubishi UFJ Financial Group, Inc. has notified ARB Corporation Limited that it has ceased to be a substantial shareholder in the company, in line with disclosure requirements under the Corporations Act 2001. The change in status follows a series of transactions on 21 January 2026 involving purchases and borrowing changes in ARB shares by entities controlled by First Sentier Group Limited and Morgan Stanley, which altered Mitsubishi UFJ’s relevant interest and reduced its holding below the substantial shareholder threshold, signalling a shift in ARB’s shareholder base that may modestly affect the company’s institutional ownership profile but does not directly change its operations.

The most recent analyst rating on (AU:ARB) stock is a Buy with a A$42.25 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

First Sentier Investor Group Ceases to Be Substantial Holder in ARB Corporation

First Sentier Group Limited and its related bodies corporate, including multiple First Sentier Investors entities and Mitsubishi UFJ Financial Group, have lodged a formal notice that they have ceased to be a substantial holder in ARB Corporation Ltd as of 23 January 2026. The filing indicates that this institutional investor group has reduced its relevant interest in ARB’s voting securities below the substantial holder threshold, signaling a material shift in the company’s share register that may alter the balance of institutional versus other ownership and could have implications for trading dynamics and governance influence at ARB.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$29.60 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Flags Lower Profit Despite Resilient Sales and Strong US Growth

ARB Corporation reported unaudited first-half FY2026 sales revenue of $358 million, down 1% year-on-year, with Australian aftermarket sales declining 1.7% amid fitting capacity constraints and a sharp 38.2% drop in domestic OEM sales due to the timing of contracts and model releases, partly offset by an 8.8% rise in export sales and a strong 26.1% surge in the US market. Underlying profit before tax is expected to be about $58 million, 16.3% lower than the prior comparable period, as weaker gross margins from the Australian dollar–Thai baht exchange rate and reduced factory overhead recoveries weighed on earnings, though the company maintains a robust balance sheet with $59.4 million in cash, no debt, and recent dividend payments, with full half-year results due in late February 2026.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$35.60 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation Announces Proposed Issue of Securities

ARB Corporation Limited has announced a proposed issue of 22,739 performance rights as part of a placement or other type of issue, with the proposed issue date set for November 28, 2025. This strategic move is likely aimed at enhancing the company’s financial flexibility and supporting its growth initiatives, potentially impacting its market positioning and offering benefits to stakeholders.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$34.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation Implements Incentive-Based Rewards for Senior Management

ARB Corporation Limited, a company known for its automotive aftermarket accessories, has issued performance rights to its senior management team, including the CEO, under its Senior Executive’s Performance Rights Plan. This initiative is part of ARB’s strategy to transition its remuneration policies towards incentive-based rewards. The performance rights, totaling 22,739, are designed to align management’s interests with company performance, with vesting conditions tied to employment tenure and earnings per share growth. This move reflects ARB’s focus on enhancing its operational efficiency and rewarding leadership performance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$34.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.

ARB Corporation Increases CEO Remuneration

ARB Corporation Limited has announced an increase in the fixed remuneration for its Chief Executive Officer, Mr. Lachlan McCann, from $1,255,000 to $1,386,690, effective from October 1, 2025. This adjustment reflects the company’s ongoing commitment to competitive executive compensation, ensuring alignment with industry standards and potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (AU:ARB) stock is a Hold with a A$34.00 price target. To see the full list of analyst forecasts on ARB Corporation stock, see the AU:ARB Stock Forecast page.