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AB Dynamics PLC (GB:ABDP)
LSE:ABDP

AB Dynamics (ABDP) AI Stock Analysis

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GB:ABDP

AB Dynamics

(LSE:ABDP)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
1,433.00p
▲(7.74% Upside)
AB Dynamics shows strong financial performance and a positive outlook from its recent earnings call, which are the most significant factors in its overall score. However, technical indicators suggest a bearish trend, and the valuation is only moderately attractive, which tempers the overall score.
Positive Factors
Strong Financial Performance
The 15% growth in operating profit and EPS indicates robust financial health and operational efficiency, which supports long-term growth and shareholder value.
Operational Improvements
The increase in operating margin reflects effective cost management and improved operational processes, enhancing profitability and competitive positioning.
Cash Conversion and Strong Balance Sheet
Strong cash conversion and a healthy cash balance provide financial flexibility for investments and growth initiatives, ensuring long-term stability.
Negative Factors
Macroeconomic Challenges
Macroeconomic disruptions, such as tariff changes, can impact revenue growth, posing risks to future financial performance and market expansion.
Segment Revenue Decrease in Simulation
A decline in the simulation segment's revenue suggests potential challenges in product demand or competitive pressures, affecting overall growth prospects.
Reduced Revenue Mix Benefit for FY '26
The anticipated reduction in revenue mix benefits could lead to lower margins and profitability, impacting financial performance in the upcoming fiscal year.

AB Dynamics (ABDP) vs. iShares MSCI United Kingdom ETF (EWC)

AB Dynamics Business Overview & Revenue Model

Company DescriptionAB Dynamics plc, through its subsidiaries, designs, develops, manufactures, and supplies testing and verification products and services for advanced driver assistance systems (ADAS), autonomous vehicle technology, and vehicle dynamics in the United Kingdom, rest of Europe, North America, the Asia Pacific, and internationally. It offers guided soft target and LaunchPad that uses control software for control and synchronization of multiple test objects, as well as provides test track services. The company also offers laboratory testing and simulation, including Advanced Vehicle Driving Simulator, the Static Simulator, Axle Level NVH, suspension parameter measurement machines (SPMM), and the rFpro physics-based simulation software environment. Its products are used to evaluate vehicle dynamics, noise, vibration, and harshness and autonomy for a range of applications comprise conventional vehicles, motorsport, and automated/autonomous vehicles. The company was founded in 1982 and is headquartered in Bradford-on-Avon, the United Kingdom.
How the Company Makes MoneyAB Dynamics generates revenue primarily through the sale of its specialized testing equipment and simulation software. Their revenue model is based on direct sales to automotive manufacturers and suppliers, as well as ongoing service contracts for maintenance and support. Key revenue streams include the sale of dynamic driving simulators, vehicle testing systems, and data analysis software. The company also benefits from strategic partnerships with automotive manufacturers and technology firms, which enhance its market reach and provide collaborative opportunities for product development. Additionally, ABDP invests in research and development to stay ahead in the rapidly evolving automotive sector, ensuring a steady pipeline of innovative solutions that attract new clients and retain existing ones.

AB Dynamics Earnings Call Summary

Earnings Call Date:Nov 11, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant profit growth, operational improvements, and a robust cash position. However, there were challenges from macroeconomic disruptions affecting revenue growth and the Simulation segment. The overall outlook remains positive with strategic plans in place to address these challenges.
Q4-2025 Updates
Positive Updates
Strong Financial Performance
Operating profit and earnings per share growth of 15%, ahead of upgraded expectations. Revenue increased by 3% with double-digit revenue growth in the first half.
Operational Improvements
Operating margin grew by 210 basis points to 20.3%, achieved through operational improvements and a richer mix of revenue.
Cash Conversion and Strong Balance Sheet
Cash conversion of 106% with a net cash balance of GBP 41.4 million, supporting further investments.
Dividend Increase
Proposed a 20% increase in the dividend, reflecting the Board's confidence in financial position and prospects.
Successful Acquisition
Acquired Bolab, a niche supplier of electronics testing equipment, with integration progressing as planned.
Negative Updates
Macroeconomic Challenges
Revenue growth slowed in the second half due to macroeconomic disruption, including U.S.-led tariff changes.
Segment Revenue Decrease in Simulation
Simulation segment experienced a decrease in revenue due to timing of simulator order intake and macroeconomic disruptions.
Reduced Revenue Mix Benefit for FY '26
The benefit from the revenue mix in FY '25 is not expected to be repeated in FY '26.
Company Guidance
During the AB Dynamics 2025 Full Year Results Presentation, the company reported a 15% growth in both operating profit and earnings per share, slightly surpassing upgraded expectations despite macroeconomic challenges in the second half of the year. Revenue increased by 3%, with double-digit growth in the first half, although the second half was impacted by macroeconomic disruptions affecting order intake timing. The operating margin expanded by 210 basis points to 20.3%, aided by operational improvements and revenue mix effects. The company ended the fiscal year with a net cash position of GBP 41.4 million, following GBP 8.1 million in investments. Cash conversion stood at 106%, supporting further organic and inorganic investments. The group also noted a carried-forward order book of GBP 32 million into FY '26, providing momentum for the upcoming fiscal year.

AB Dynamics Financial Statement Overview

Summary
AB Dynamics exhibits a strong financial position with consistent profitability, a solid balance sheet, and robust cash flow generation. While there is a slight dip in recent revenue growth, the company maintains healthy margins and low leverage, positioning it well for future growth in the auto parts industry.
Income Statement
75
Positive
AB Dynamics has demonstrated consistent revenue growth over the years, although the latest period shows a slight decline. The company maintains strong gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy, reflecting solid operational performance.
Balance Sheet
80
Positive
The balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The return on equity is improving, showcasing effective use of shareholder funds. The equity ratio is strong, highlighting a solid capital structure.
Cash Flow
78
Positive
Cash flow generation is strong, with positive growth in free cash flow and a healthy operating cash flow to net income ratio. The company effectively converts its earnings into cash, supporting its financial flexibility and investment capacity.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue114.70M114.70M111.25M100.77M80.31M65.38M
Gross Profit64.90M71.10M66.28M59.93M46.22M37.11M
EBITDA25.70M25.70M22.76M23.30M15.29M10.97M
Net Income12.00M12.00M9.71M10.99M4.74M2.98M
Balance Sheet
Total Assets188.90M188.90M175.96M170.64M141.26M131.97M
Cash, Cash Equivalents and Short-Term Investments44.70M44.70M31.80M33.49M30.14M23.28M
Total Debt3.30M3.30M3.24M1.48M943.00K967.00K
Total Liabilities49.00M49.00M44.70M45.49M29.30M26.98M
Stockholders Equity139.90M139.90M131.25M125.16M111.96M104.99M
Cash Flow
Free Cash Flow22.40M21.60M19.68M15.95M14.10M8.58M
Operating Cash Flow24.70M24.70M23.50M19.34M17.91M15.22M
Investing Cash Flow-6.50M-6.50M-20.80M-14.05M-8.92M-20.97M
Financing Cash Flow-5.30M-5.30M-4.38M-1.92M-2.04M2.97M

AB Dynamics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1330.00
Price Trends
50DMA
1287.02
Positive
100DMA
1331.83
Negative
200DMA
1477.84
Negative
Market Momentum
MACD
9.27
Negative
RSI
57.96
Neutral
STOCH
76.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABDP, the sentiment is Positive. The current price of 1330 is above the 20-day moving average (MA) of 1300.43, above the 50-day MA of 1287.02, and below the 200-day MA of 1477.84, indicating a neutral trend. The MACD of 9.27 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 76.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ABDP.

AB Dynamics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£19.25M13.6822.19%32.78%-8.69%
73
Outperform
£305.29M25.498.85%0.63%3.10%23.59%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
£21.71M3.3630.82%-18.51%-13.40%
60
Neutral
£74.18M-15.31-34.64%14.08%31.82%
55
Neutral
£107.90M25.9516.70%1.48%20.64%
47
Neutral
£22.79M-1.11-131.18%34.87%77.15%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ABDP
AB Dynamics
1,330.00
-483.45
-26.66%
GB:MOTR
Motorpoint
136.00
18.79
16.03%
GB:SCE
Surface Transforms
1.75
1.31
297.73%
GB:TRT
Transense Technologies PLC
126.50
-36.00
-22.15%
GB:CTA
CT Automotive Group Plc
29.50
-6.00
-16.90%
GB:AURR
Aurrigo International PLC
83.00
36.00
76.60%

AB Dynamics Corporate Events

Other
AB Dynamics Executives Exercise LTIP Options and Sell Shares to Cover Tax
Neutral
Jan 7, 2026

AB Dynamics has disclosed that several senior managers exercised nil-cost options under its Long Term Incentive Plan and sold a portion of the resulting shares to cover exercise costs and tax liabilities. Chief executive Sarah Matthews-DeMers and other senior executives together exercised 29,309 options and sold part of their new holdings at 1,295p per share, modestly increasing their direct stakes while signalling continued alignment with shareholders through retained shareholdings.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £1433.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesProduct-Related Announcements
AB Dynamics Secures Major Simulation Contract and Announces New CEO
Positive
Dec 1, 2025

AB Dynamics plc has secured a €9.7 million contract to supply advanced driver-in-the-loop simulation equipment to a major European OEM, with revenue expected in the latter half of FY 2026 and early FY 2027. This contract strengthens AB Dynamics’ market position in simulation and supports its growth prospects, particularly in active safety and autonomous systems, as Sarah Matthews-DeMers steps into her role as CEO.

The most recent analyst rating on (GB:ABDP) stock is a Hold with a £1620.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Other
AB Dynamics Announces Share Transactions by Board Advisor
Neutral
Nov 25, 2025

AB Dynamics plc announced that Mr. Tony Best, Special Advisor to the Board, and Mrs. Naemi Best have made transactions involving the gifting of Ordinary Shares to two newly established trusts for personal tax planning. These transactions involve significant share transfers to the Best Family Beneficiary Protection Trusts 2025, impacting the shareholding structure, with Mr. Best and associated persons retaining a substantial interest in the company.

The most recent analyst rating on (GB:ABDP) stock is a Hold with a £1620.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Financial DisclosuresShareholder Meetings
AB Dynamics Announces AGM Details and Annual Report Release
Neutral
Nov 24, 2025

AB Dynamics plc has announced the details of its upcoming Annual General Meeting (AGM) for the financial year ending 31 August 2025, which will be held on 15 January 2026 in London. The company has made its Annual Report 2025 and the Notice of AGM available on its website and has posted them to shareholders. This announcement reflects AB Dynamics’ commitment to engaging with its shareholders, inviting them to submit questions in advance of the AGM, ensuring transparency and communication with its stakeholders.

The most recent analyst rating on (GB:ABDP) stock is a Hold with a £1620.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
AB Dynamics Enhances Executive Incentives with Share Awards
Positive
Nov 17, 2025

AB Dynamics plc has announced the issuance of bonus shares and the grant of Long Term Incentive Plan (LTIP) awards to key personnel. This move, which includes a significant allocation to the CFO and CEO designate Sarah Matthews-DeMers, reflects the company’s strategy to incentivize and retain top management, potentially impacting its market positioning by aligning leadership interests with shareholder value.

The most recent analyst rating on (GB:ABDP) stock is a Hold with a £1620.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
AB Dynamics Reports Strong Financial Growth Amidst Market Challenges
Positive
Nov 11, 2025

AB Dynamics announced strong financial results for the year ending August 2025, with a 15% increase in adjusted operating profit and earnings per share, despite macroeconomic challenges in the second half. The company maintained a 45% recurring revenue proportion and improved its operating margin by 210bps to 20.3%. Strategic initiatives included the launch of new products like the Delta S3 Spin Simulator and the ClearTrack LiDAR system, as well as the integration of Bolab Systems GmbH. The company remains optimistic about future growth, supported by long-term structural and regulatory drivers in the automotive sector, and expects to continue its financial and strategic progress in FY 2026.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £2650.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Financial Disclosures
AB Dynamics to Announce Year-End Financial Results on 11 November 2025
Positive
Oct 30, 2025

AB Dynamics PLC has announced that it will release its financial results for the year ended 31 August 2025 on 11 November 2025. The announcement includes details of a pre-recorded results presentation available on the company’s website, followed by a live presentation for analysts and an additional presentation on the Investor Meet Company platform. This structured communication strategy reflects the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market perception positively.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £2650.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
AB Dynamics Appoints New CEO to Drive Growth
Positive
Oct 21, 2025

AB Dynamics has appointed Sarah Matthews-DeMers as the new Group Chief Executive Officer, effective December 1, 2025. Sarah, currently the Chief Financial Officer, has been a key figure in the company’s transformation over the past six years. Her appointment follows a thorough search process and is part of the company’s strategy to achieve medium-term growth goals. The outgoing CEO, James Routh, will remain until the end of the year to ensure a smooth transition. This leadership change is expected to further strengthen AB Dynamics’ position in the evolving global transport market, focusing on safety, sustainability, and efficiency.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £1601.00 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

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.Date of analysis: Dec 11, 2025