Amotiv (AOV) H2 2025 earnings summary

Executive summary

• Delivered solid FY 2025 results in a challenging environment, leveraging disciplined cost management and continued investment in manufacturing capacity and capability.

• Group revenue grew 1.0% to $997.4m, with underlying EBITDA up 1.2% to $226.4m and underlying EBITA down 1.3% to $192.0m.

• Returned over AUD 105 million ($105.4m) to shareholders via buybacks and dividends, maintaining a strong balance sheet within capital management targets.

• Launched Amotiv Unified, delivering $15m in annualised gross savings and targeting $10m net benefits in FY26.

Financial highlights

• Revenue increased 1.0% year-over-year to $997.4m, with Powertrain & Undercar up 3.3%, 4WD up 1.7%, and Lighting, Power & Electrical down 1.9%.

• Underlying EBITDA was $226.4m (AUD 192m), down 1.3% year-over-year, reflecting ongoing investment and cost management.

• Gross margin declined 30bps to 43.8% due to lower OE volumes and inflationary pressures.

• Statutory loss of AUD 75.3m, mainly due to a non-cash impairment of $190m in the APG business.

• Cash conversion remained strong at 90.6%, exceeding guidance.

Outlook and guidance

• FY26 group revenue growth expected, with underlying EBITA guidance of around $195m, assuming current economic conditions persist.

• Expectation of persistent cyclical headwinds in ANZ, but core wear and repair categories to remain resilient.

• Net benefit from Amotiv Unified of $10m, offset by $8m in incentives and U.S. tariffs.

• Buyback program to complete 5% of shares by AGM in October 2025.