Amotiv Limited reported a solid FY26 half-year result with revenue growth and margin pressures partly offset by its Amotiv Unified transformation program. The company maintained its FY26 guidance, highlighting strong cash flow and shareholder returns.
- Group revenue up 3.3% to $520.5 million
- Underlying EBITA increased 1.3% to $98.3 million despite margin pressures
- Amotiv Unified program delivers $10 million net annualised benefits by FY26 exit
- Interim dividend increased 8.1% to 20.0 cents per share
- Leverage maintained within target range at 1.95x with $48 million returned to shareholders
Solid Performance in a Tough Environment
Amotiv Limited (ASX – AOV) has released its FY26 half-year results, demonstrating resilience amid ongoing inflationary pressures and challenging market conditions. The company reported a 3.3% increase in group revenue to $520.5 million and a modest 1.3% rise in underlying EBITA to $98.3 million. These results reflect a combination of organic growth, new business wins, and geographic diversification, particularly offshore.
Despite headwinds in the 4WD and Lighting, Power & Electrical (LPE) segments, Amotiv’s strategic initiatives, especially the Amotiv Unified transformation program, have helped mitigate margin pressures. The program, now delivering $10 million in net annualised benefits, focuses on operational efficiencies, IT simplification, and logistics consolidation.
Divisional Highlights and Challenges
The 4WD Accessories & Trailering segment saw revenue growth of 5.5% to $189.6 million but experienced a 15.2% decline in underlying EBITA due to domestic inflation and mix pressures. Pricing actions in the second half are expected to support margin recovery. Meanwhile, the LPE division maintained steady revenue with a slight decline of 0.7%, but underlying EBITA grew by 9.4%, driven by operational cost reductions and offshore revenue growth, particularly in the US and Europe.
The Powertrain & Undercar (PTU) division posted a 4.9% revenue increase and a 6.7% rise in underlying EBITA, benefiting from geographic diversification and moderated investment in electric vehicle segments. The company continues to expand manufacturing capacity in Thailand and South Africa to support international growth.
Financial Strength and Shareholder Returns
Amotiv’s strong cash flow conversion improved to 91.9%, well above the company’s capital allocation target of 75%. The group maintained leverage within its target range at 1.95x net debt to adjusted EBITDA, reflecting disciplined capital management. The company completed a 5% share buyback during the period and increased its interim dividend by 8.1% to 20.0 cents per share, returning approximately $48 million to shareholders in total.
Foreign exchange exposure was well managed, with a significant portion of offshore earnings providing a natural hedge against currency fluctuations. The company’s tariff exposure remains limited, with ongoing monitoring of US tariff developments and strategic initiatives to mitigate risks.
Outlook and Strategic Focus
Amotiv reaffirmed its FY26 guidance, expecting group revenue growth and underlying EBITA of approximately $195 million. The company anticipates a balanced earnings profile between the first and second halves, with pricing actions and operational efficiencies supporting margin improvement. The Amotiv Unified program will continue to deliver incremental benefits, albeit at a moderated pace in the second half.
Looking ahead, Amotiv remains focused on expanding its offshore footprint, particularly in the US, Europe, and Asia, while defending its core ANZ markets. The commissioning of a third manufacturing plant in Thailand and ongoing investments in product development underpin the company’s growth ambitions.
Bottom Line?
Amotiv’s disciplined execution and transformation efforts position it well to navigate ongoing market headwinds and deliver shareholder value in FY26 and beyond.
Questions in the middle?
- How will pricing actions in H2 impact margins across the 4WD and LPE segments?
- What is the potential impact of evolving US tariff policies on Amotiv’s offshore revenue?
- How quickly can the Thailand manufacturing expansion scale to support international growth?