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ARB Corporation
(Sydney:ARB)
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Rating:72Outperform
Price Target:
AU$19.00
â–¼(-7.59% Downside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by solid financial quality—especially a conservatively positioned balance sheet and still-healthy profitability—tempered by softer recent growth and volatile free cash flow. Earnings-call messaging supports a stable outlook with constructive operational momentum (second-half margin recovery and international growth initiatives), while technical signals are mixed with the stock still below its 200-day moving average. Valuation is supported by a strong dividend yield, with the P/E implying only moderate valuation support.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide ARB with financial resilience and flexibility. The debt-light structure supports continued investment in stores, engineering and international expansion while reducing pressure on cash flows during weaker trading conditions.
Negative Factors
Recent revenue and earnings contraction
The recent decline in sales and underlying profit indicates that ARB’s earnings trajectory has softened after stronger prior years. Management expects FY27 vehicle sales broadly in line with FY26, suggesting stabilization rather than a clear near-term return to rapid growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide ARB with financial resilience and flexibility. The debt-light structure supports continued investment in stores, engineering and international expansion while reducing pressure on cash flows during weaker trading conditions.
Read all positive factors
ARB Corporation (ARB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.43B
Dividend Yield4.05%
Average Volume (3M)379.26K
Price to Earnings (P/E)15.1
Beta (1Y)1.55
Revenue Growth-3.83%
EPS Growth-5.92%
CountryAU
Employees1,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.11
Shares Outstanding83,660,080
10 Day Avg. Volume460,638
30 Day Avg. Volume379,262
Financial Highlights & Ratios
PEG Ratio-2.87
Price to Book (P/B)2.13
Price to Sales (P/S)2.25
P/FCF Ratio23.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$22.83Price Target Upside11.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.09
Revenue Forecast (FY)AU$717.67M
ARB Corporation Business Overview & Revenue Model
Company Description
ARB Corporation Limited is a leading enterprise engaged in the design, manufacturing, distribution, and retail of a comprehensive range of vehicle accessories and light metal engineering products. The company's diverse portfolio addresses various ...
How the Company Makes Money
ARB makes money primarily by selling 4WD accessories and related automotive products through a mix of wholesale and retail channels. A core revenue stream is the wholesale supply of ARB-branded products (and potentially other distributed products)...
ARB Corporation Earnings Call Summary
Earnings Call Date:Aug 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call described a resilient performance amid challenging macro, geopolitical and FX conditions: revenue and underlying profits declined modestly year-on-year, but a clear second-half margin recovery, strong U.S. growth, expanding international footprint (China, South Africa), a debt-free balance sheet, store and digital investments, and planned higher engineering investment point to constructive momentum. Key risks include sensitivity to FX (AUD/THB), cyclical OEM timing, regional conflicts and softer domestic vehicle markets. On balance the positives around recovery, growth initiatives and financial strength outweigh the cyclical and regional headwinds.Positive Updates
Resilient Full-Year Financials
Sales revenue of $702.0M, down 3.8% YoY; profit before tax $123.0M, down 8.9% YoY, and profit after tax $92.4M, down 5.2% YoY — result described as resilient given economic, supply and FX headwinds.
Negative Updates
Decline in Sales and Underlying Profit
Total sales fell 3.8% to $702M and underlying profit before tax declined 10.5% to $118.6M (underlying), driven primarily by lower sales volumes.
Read all updates
Q4-2026 Updates
Positive
Negative
Resilient Full-Year Financials
Sales revenue of $702.0M, down 3.8% YoY; profit before tax $123.0M, down 8.9% YoY, and profit after tax $92.4M, down 5.2% YoY — result described as resilient given economic, supply and FX headwinds.
Read all positive updates
Company Guidance
Guidance: ARB expects FY27 new-vehicle sales to be broadly in line with FY26 (FY26 sales $702.0m, -3.8%; 10‑yr sales CAGR 7%), with OEM revenues set to recover from FY26’s $43.4m (down 27.2%, 6.2% of group sales) and exports remaining a key growth engine (FY26 export $268.4m, +0.5%; U.S. +13.5% in USD). Management said margins should trade broadly in line with the FY26 average (materials & consumables 42.4% of sales vs 43.3% in FY25; underlying PBT $118.6m, -10.5%; reported PBT $123.0m, -8.9%; PAT $92.4m, -5.2%; EPS $1.11, -5.9%), and will increase engineering investment by c.10–15% p.a. (FY26 R&D expense ~ $20m, capitalised ~$4m; FY26 capex $36.6m — $24.0m property, $12.6m plant). The group is hedged at ~THB23/AUD to Nov 2026, holds $47.9m cash with no debt (net cash down $21.3m after $83.6m of dividends paid) and announced a final fully franked dividend of $0.35 per share; strategic priorities are continued U.S., SE Asia and China expansion, a South Africa wholesale rollout early in FY27, and ongoing store growth (80 stores nationally, targeting 3–5 new stores p.a.).ARB Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 702.01M | 729.95M | 693.15M | 671.24M | 694.52M |
| Gross Profit | 189.21M | 414.23M | 208.58M | 356.67M | 220.00M |
| EBITDA | 149.16M | 169.80M | 172.22M | 149.64M | 191.09M |
| Net Income | 92.41M | 97.53M | 102.68M | 88.45M | 122.01M |
Balance Sheet | |||||
| Total Assets | 891.57M | 904.77M | 792.27M | 724.79M | 704.21M |
| Cash, Cash Equivalents and Short-Term Investments | 47.90M | 69.20M | 56.50M | 44.95M | 52.71M |
| Total Debt | 49.55M | 46.69M | 40.25M | 35.84M | 38.03M |
| Total Liabilities | 149.69M | 148.16M | 132.85M | 117.67M | 148.86M |
| Stockholders Equity | 741.89M | 756.62M | 659.42M | 607.13M | 555.35M |
Cash Flow | |||||
| Free Cash Flow | 67.03M | 75.03M | 73.33M | 44.53M | 22.27M |
| Operating Cash Flow | 103.67M | 127.95M | 125.28M | 90.40M | 84.61M |
| Investing Cash Flow | -34.29M | -82.98M | -61.81M | -44.98M | -60.62M |
| Financing Cash Flow | -92.32M | -31.26M | -51.93M | -52.27M | -56.69M |
ARB Corporation Technical Analysis
Positive
20.56
Price Trends
17.98
Negative
18.21
Negative
19.87
Negative
Market Momentum
-0.20
Negative
48.83
Neutral
70.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARB, the sentiment is Positive. The current price of 20.56 is above the 20-day moving average (MA) of 17.20, above the 50-day MA of 17.98, and above the 200-day MA of 19.87, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$1.43B | 15.14 | 12.52% | 4.05% | -3.83% | -5.92% | |
72 Outperform | AU$1.51B | 31.83 | 30.40% | 2.32% | 15.55% | 17.30% | |
71 Outperform | AU$49.75M | 23.15 | 16.84% | ― | 22.73% | 15.22% | |
64 Neutral | AU$1.14B | 64.27 | 16.37% | 0.70% | 31.23% | 83.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | AU$223.40M | 33.70 | 2.93% | 1.08% | 2.46% | ― | |
44 Neutral | AU$36.96M | -2.93 | -18.29% | 5.36% | -17.25% | 74.53% |
* Consumer Cyclical Sector Average
AU:ARB
ARB Corporation
17.15
-18.32
-51.65%
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ARB Corporation Corporate Events
ARB Corrects DRP and Bonus Share Plan Pricing for June 2026 Dividend
Oct 26, 2026
ARB Corporation Limited has issued an updated notification to the ASX correcting the price used for its Dividend Reinvestment Plan and Bonus Share Plan tied to its ordinary fully paid shares. The adjustment changes the DRP/BSP price for the six-mo...
ARB Updates DRP and BSP Pricing for Interim Dividend
Oct 14, 2026
ARB Corporation Limited, a leading Australian manufacturer and distributor of 4×4 accessories and off-road equipment, is listed on the ASX under the ticker ARB, with ordinary fully paid shares.The company has updated its dividend notification...
ARB Corporation Issues 7,013 New Ordinary Shares After Option Conversions
Oct 2, 2026
ARB Corporation Limited has notified the Australian Securities Exchange of the issue and transfer of 7,013 ordinary fully paid shares. The new shares result from the exercise or conversion of previously unquoted options or other convertible securi...
ARB Corporation Modestly Lifts CEO Fixed Remuneration
Sep 17, 2026
ARB Corporation Limited, a leading producer of 4×4 and off-road automotive accessories, supplies aftermarket equipment such as bull bars, racks, and suspension components to recreational drivers and commercial users in Australia and overseas....
ARB Sets October Date for AGM, Board Elections and Proxy Voting
Sep 11, 2026
ARB Corporation Limited has scheduled its 2026 Annual General Meeting for 9:30 a.m. AEDT on Thursday, 15 October 2026, at the RACV Club in Melbourne. The company will provide online access to management presentations, allowing remote shareholders ...
ARB Corporation Announces Board Changes and Succession Planning Move
Sep 11, 2026
ARB Corporation Limited has announced that long-serving Non-Executive Director Andrew Stott will retire from the board at the conclusion of its Annual General Meeting on 15 October 2026, after two decades of contributing deep industry knowledge an...
ARB Corporation Plans Issue of New Performance Rights on ASX
Sep 2, 2026
ARB Corporation Limited has notified the ASX of a proposed issue of new securities, outlining plans to grant up to 49,109 performance rights. The securities will form a new class to be confirmed by the exchange, reflecting the company’s ongo...
ARB Aligns Executive Incentives With Long-Term EPS Growth Targets
Sep 2, 2026
ARB Corporation has introduced a new tranche of performance rights under its Senior Executive’s Performance Rights Plan for members of the senior management team, including Chief Executive Officer Lachlan McCann. The issue covers 49,109 perf...
ARB strengthens ASX-aligned governance and ethical oversight
Aug 25, 2026
ARB Corporation Limited has reaffirmed its commitment to ASX-aligned corporate governance, detailing a board structure with a majority of independent non-executive directors, clear separation of board and management roles, and extensive use of per...
ARB Corporation Declares Interim Dividend of AUD 0.35 per Share
Aug 25, 2026
ARB Corporation Limited, a leading Australian producer of 4×4 accessories and off-road vehicle equipment, serves recreational and commercial customers through a broad range of aftermarket products. Its ordinary fully paid shares trade on the ...
ARB Corporation Posts Lower 2026 Profit but Maintains Core Dividends
Aug 25, 2026
ARB Corporation has reported a softer financial performance for the year ended 30 June 2026, with sales revenue down 3.8% to $702.0 million and net profit attributable to members declining 5.2% to $92.4 million. Underlying net profit, adjusted for...
ARB Corporation maps out key 2026 financial and shareholder dates
Aug 7, 2026
ARB Corporation has outlined its key corporate and shareholder dates for the second half of 2026, signalling a busy calendar as it closes the financial year ended 30 June 2026. The company will release its full-year results and host an investor we...
ARB Corporation Sets Date for FY2026 Results Webcast
Aug 7, 2026
ARB Corporation has scheduled the presentation of its full-year results for the financial year ended 30 June 2026, with management to outline performance on 25 August 2026 via a live webcast. The company will release the FY2026 results presentatio...
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.