ARB Reports Challenging First Half, Sees Improvement Ahead

Auto parts maker cites global backdrop and currency pressures, but touts strong U.S. growth and new product launches.

Published on Feb. 24, 2026

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ARB (ASX:ARB) reported a challenging first half, with sales revenue down 1% year-over-year and profit before tax declining 18.8% due to lower gross margins from a combination of revenue declines and higher materials costs. However, the company saw strong growth in the U.S. market, driven by its strategic relationship with Toyota, e-commerce channel, and expansion through the Off Road Warehouse and 4 Wheel Parts retail networks. ARB also invested in new stores, e-commerce, and product development, including the launch of a new winch product.

Why it matters

ARB's first-half results reflect the broader challenges facing the global auto industry, including lower new vehicle sales and supply chain pressures. However, the company's ability to drive growth in the U.S. market and invest in new products and capabilities suggests it is navigating these headwinds effectively. The report provides insights into ARB's diversification strategy and its efforts to expand its footprint and customer base.

The details

ARB reported sales revenue of AUD 358 million for the six months ended 31 December 2025, down 1% year-over-year. Profit before tax was AUD 57.1 million, down 18.8%, with most of the decline attributed to lower gross margins. The Australian aftermarket declined 1.7%, while export sales increased 8.8%, led by 26.1% growth in the U.S. market. OEM sales fell 38.2% due to higher inventories held by customers. ARB cited currency-driven margin pressure and an 'ongoing shortage of accessory fitment resources' as factors weighing on profitability.

  • For the six months ended 31 December 2025
  • ARB paid dividends during the period, including a AUD 0.35 final dividend for FY2025 and a AUD 0.50 special dividend
  • ARB's interim fully franked dividend of AUD 0.34 per share is payable on 17 April 2026

The players

ARB Corporation Limited

An Australian company that designs, manufactures, distributes, and sells motor vehicle accessories and light metal engineering works.

Damon Page

Chief Financial Officer of ARB Corporation Limited.

Lachlan McCann

Chief Executive Officer of ARB Corporation Limited.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

ARB has largely hedged its Thai baht exposure for the second half of FY2026 at rates slightly more favorable than the prior period, and expects overhead recoveries to be consistent with the second half of FY2025. The company also implemented an average 3% price increase in February, with benefits expected to flow through later in the half.

The takeaway

ARB's first-half results highlight the challenges facing the global auto industry, but the company's ability to drive growth in the U.S. market and invest in new products and capabilities suggests it is navigating these headwinds effectively. The report provides insights into ARB's diversification strategy and its efforts to expand its footprint and customer base.