ARB Corporation reported a 5.2% decline in net profit after tax to AUD 92.4 million for the full year ended June 30, 2026, despite a 3.8% decrease in revenue to AUD 702.0 million. The company’s stock reacted positively, rising 14.88% to close at AUD 21.70 following the presentation of its FY26 results on August 25.
Gross margins expanded to 57.6% from 56.7% in FY25, offsetting weaker sales across key segments. First-half profit before tax fell 18.8%, while second-half profit before tax increased 1.9% year-over-year, reflecting a recovery in margins as the year progressed. Net profit before tax declined 8.9% to AUD 123.0 million, with basic earnings per share down 5.9% to AUD 1.11.
Sales channels showed mixed performance. Australian aftermarket revenue decreased 3.3% to AUD 390.1 million, accounting for 55.6% of total sales. Export sales rose 0.5% to AUD 268.4 million, with U.S. growth of 10.2% in local currency terms, while OEM sales plummeted 27.2% to AUD 43.4 million. Gross margin expansion was supported by price increases totaling over 5% implemented during the year, alongside a reduction in materials and consumables as a percentage of sales from 43.3% to 42.4%.
ARB maintained its debt-free status with a net cash position of AUD 47.9 million. Operating cash flow reached AUD 103.7 million, while capital expenditure totaled AUD 36.6 million, split between property (AUD 24.0 million) and plant and equipment (AUD 12.6 million). The company reduced inventory by AUD 6.1 million and increased trade payables by AUD 2.8 million.
The retailer paid total dividends of AUD 83.6 million, including a 50-cent per share special dividend from FY25. The final FY26 dividend was set at 35 cents per share, fully franked, marking 35 consecutive years of dividend payments. Employee expenses rose 1.9% to AUD 179.5 million, while depreciation increased 9.8% to AUD 35.7 million. Net operating expenses were flat at AUD 285.7 million, up 1.5% year-over-year.
Chief Executive Lachlan McCann highlighted the company’s local manufacturing capabilities, stating, "Only ARB has the local manufacturing presence and capability to deliver these decisive wins." Chief Financial Officer Damon Page noted the improvement in the second half, adding, "The shape of the result improved as the year progressed. Second half profit before tax grew 1.9%, reflecting the recovery in sales margins."
ARB operates 80 stores nationwide, including 33 corporate-owned locations and 47 franchised outlets. The company’s retail network includes Australia’s largest store in Townsville at 3,527 square meters and a dedicated fleet fitment center in Auburn, New South Wales. Customer metrics improved, with the Net Promoter Score rising from 68 to 75, while fitter retention reached approximately 70% by June 2026.
