Amotiv Navigates FY25 with Steady Growth Amid $190m Impairment Hit

Solid Performance in a Challenging Market

Amotiv Limited has delivered a steady financial performance for the year ended 30 June 2025, with revenue growing marginally by 1% to $997.4 million. This result reflects the company’s ability to leverage its strong market positions and disciplined cost management despite a backdrop of subdued demand in key sectors such as caravan and recreational vehicles.

Underlying earnings before interest, tax and amortisation (EBITA) came in at $192 million, slightly down from the previous year, primarily due to strategic investments in manufacturing capacity and capability. Operational efficiencies and cost reduction initiatives helped underpin a slight increase in underlying EBITDA to $226.4 million.

Impairment and Its Impact

The statutory net profit after tax (NPAT) was a loss of $106.3 million, heavily influenced by a non-cash impairment charge of $190 million related to the company’s APG assets. This impairment reflects a more cautious long-term outlook driven by external factors such as anticipated moderation in new vehicle sales in Australia and New Zealand, currency fluctuations, and the impact of US tariffs.

Despite this write-down, APG remains competitively positioned with strong brands and a strategic footprint, suggesting that the impairment is a prudent accounting adjustment rather than a reflection of fundamental business weakness.

Segment Performance Highlights

The company’s three main segments showed mixed results. The Powertrain and Undercar segment outperformed with a 3.3% revenue increase and a 6.2% rise in underlying EBITA, driven by organic growth, product development, and operational efficiencies. Conversely, the Lighting, Power and Electrical segment experienced an 1.9% revenue decline and a 5.5% EBITA drop, impacted by softer reseller demand and channel weakness in Australia.

The 4WD Accessories and Trailering segment saw a modest 1.7% revenue increase, though organic revenues declined slightly due to subdued volumes in the caravan and recreational vehicle markets. Margins were pressured in this segment, reflecting the challenging market conditions.

Capital Management and Balance Sheet

Amotiv returned $105.4 million to shareholders through dividends and share buybacks, maintaining a final dividend of 22 cents per share consistent with the prior year. Net debt increased to 1.9 times adjusted EBITDA, influenced by the buyback program and working capital investments, but remains well within the company’s targeted range and covenant limits.

The company retains significant liquidity with unused borrowing facilities exceeding $160 million and no debt maturing in the next 12 months, positioning it well to navigate ongoing market uncertainties.

Looking Ahead to FY26

For FY26, Amotiv expects revenue growth and underlying EBITA around $195 million despite persistent cyclical headwinds in Australia and New Zealand. The company plans to implement pricing actions to support margins and anticipates net benefits of approximately $10 million from its Amotiv Unified transformation program, partially offset by tariff-related costs.

Cash conversion is expected to align with the company’s capital allocation framework, and deleveraging is forecasted in the second half of the year. The completion of a 5% share buyback program by the October 2025 AGM will further shape the capital structure.

Investors will be watching closely for updates at the upcoming AGM, as Amotiv balances cautious optimism with the realities of a complex global automotive components market.