Amotiv’s FY25: $997m Revenue, $200m Impairment, 22c Dividend Declared

• FY25 revenue up 1% to $997.4 million
• Underlying EBITA slightly down 1.3% to $192.0 million
• Net loss of $106.3 million due to $200.4 million impairment on APG goodwill and intangibles
• Declared fully franked final dividend of 22.0 cents per share
• Board refresh with new Chair-elect and ongoing Amotiv Unified transformation program

Financial Highlights and Impairment Impact

Amotiv Limited closed FY25 with a slight revenue increase of 1% to $997.4 million, reflecting resilience amid challenging macroeconomic conditions. However, the company reported a net loss after tax of $106.3 million, primarily due to a non-cash impairment charge of $200.4 million related to goodwill and intangible assets within its AutoPacific Group (APG) business. This impairment reflects a more cautious outlook on vehicle sales, market mix, and external factors such as US tariffs.

Underlying earnings before interest, tax and amortisation (EBITA) were marginally down 1.3% to $192.0 million, indicating stable core operational performance despite the headwinds. The impairment charge, while significant, does not affect the company’s underlying cash flows or debt covenant compliance.

Segment Performance and Geographic Diversification

The Group’s three operating divisions delivered mixed results. Powertrain & Undercar showed organic growth of 3.3%, driven by filtration and aftermarket resilience. The 4WD Accessories & Trailering segment faced softer volumes in Australia and New Zealand, with a modest 1.7% revenue increase supported by new operations in South Africa and export growth to the US and China. Lighting, Power & Electrical experienced a 1.9% revenue decline, impacted by subdued demand in ANZ reseller and original equipment channels, despite international growth and product innovation.

Geographically, Amotiv continued to diversify, with 17% of revenue now generated outside Australia and New Zealand, including first-time sales into the US and China from the 4WD Accessories division. The company also commenced manufacturing in South Africa in January 2025, aiming to support local OEM customers and global exports.

Capital Management and Shareholder Returns

Amotiv maintained a disciplined capital management approach, completing an on-market share buyback of approximately 3.6% of shares at a cost of $48.7 million during FY25. The company returned a total of $105.4 million to shareholders through dividends and buybacks, with a consistent dividend payout ratio of 54% of underlying net profit after tax. The Board declared a fully franked final dividend of 22.0 cents per share payable in September 2025.

Liquidity remains strong with $160.3 million of unused borrowing facilities and no debt maturities in the next 12 months, positioning Amotiv well to fund future growth initiatives.

Strategic Initiatives and Sustainability Progress

Amotiv advanced its Amotiv Unified program, a multi-year transformation designed to simplify operations, improve efficiency, and unlock shareholder value through 25-30 projects over three years. The Group also refreshed its 2030 strategy, setting clear ambitions for growth and sustainability.

On the sustainability front, Amotiv’s distribution businesses achieved net carbon neutrality for Scope 1 and 2 emissions in FY25, supported by 100% renewable electricity sourcing and on-site solar installations. The company also expanded sustainable sourcing programs and enhanced supplier due diligence, reflecting a commitment to ESG integration across its global operations.

Governance and Leadership Changes

The Board welcomed new Non-Executive Directors including Raelene Murphy and David Coolidge, and announced James Fazzino as Chair-elect, set to succeed Graeme Billings in October 2025. Executive remuneration reflected the challenging environment, with no short-term or long-term incentive payouts awarded due to unmet financial targets, underscoring alignment with shareholder interests.

Looking ahead, Amotiv anticipates modest revenue growth in FY26 with underlying EBITA around $195 million, supported by pricing actions and benefits from the Amotiv Unified program, while navigating persistent cyclical headwinds and tariff impacts.

Bottom Line?

Amotiv’s FY25 results mark a pivotal moment of strategic reset and sustainability leadership, setting the stage for cautious optimism amid ongoing market challenges.

Questions in the middle?

• How will Amotiv’s APG business recover and perform post-impairment in FY26 and beyond?
• What tangible benefits and cost savings will the Amotiv Unified program deliver in the near term?
• How will evolving US tariffs and electric vehicle market dynamics impact Amotiv’s margins and product portfolio?