Amotiv’s EBITA Falls 1% to $192M; $180M APG Impairment Looms
Amotiv Limited reports a slight decline in EBITA for FY25 alongside a significant non-cash impairment on its APG business, reflecting a cautious outlook amid challenging market conditions.
- FY25 EBITA expected to decline by 1% to approximately $192 million
- Revenue marginally ahead of prior year
- Non-cash impairment charge of $180-$190 million on APG business
- Impairment driven by subdued vehicle sales and macroeconomic headwinds
- Cash conversion slightly above 85%, no impact on cash flow or debt covenants
Preliminary FY25 Financial Performance
Amotiv Limited (ASX, AOV) has released its preliminary unaudited results for the fiscal year ended 30 June 2025, revealing a modest 1% decline in underlying EBITA to around $192 million. Despite this slight dip, the company’s revenue is expected to be marginally higher than the previous year, signaling resilience in a challenging automotive components market. Cash conversion remains robust, marginally exceeding the previously forecasted 85%.
Significant Impairment on APG Business
In a notable development, Amotiv is set to record a substantial non-cash impairment charge between $180 million and $190 million related to its APG business segment. This adjustment stems from a more cautious long-term growth outlook, influenced by several external pressures. These include an anticipated slowdown in new vehicle sales in Australia, a challenging macroeconomic environment in New Zealand, and concerns over foreign exchange volatility and potential US tariffs impacting the Caravan and RV markets.
Market and Strategic Implications
While the impairment is an accounting measure with no direct effect on operating cash flows or debt covenant compliance, it underscores the company’s prudent stance amid uncertain market conditions. The APG business, despite this write-down, continues to hold a strong competitive position supported by leading brands and strategic market alignment. This suggests that Amotiv is positioning itself to navigate the cyclical pressures and external risks with a focus on sustainable long-term value.
Looking Ahead
Investors will be watching closely for the audited FY25 results due on 13 August 2025, which will provide further clarity on the final financial impact and segment performance. The company’s ability to manage through the evolving automotive landscape, particularly in light of macroeconomic headwinds and geopolitical factors, will be critical to its future trajectory.
Bottom Line?
Amotiv’s cautious recalibration on APG signals a pivotal moment as it braces for ongoing market headwinds.
Questions in the middle?
- How will the impairment affect Amotiv’s strategic investment and growth plans for APG?
- What specific factors are driving the more conservative outlook on vehicle sales in Australia and New Zealand?
- Could potential US tariffs materially alter the competitive landscape for Amotiv’s Caravan and RV segments?
