Amotiv Reports $520.5M Revenue and $46M Net Profit in H1 FY26
Amotiv Limited reported a 3.3% revenue increase to $520.5 million for the half year ended December 2025, alongside a 39.4% jump in net profit, driven by new business wins and operational efficiencies despite margin pressures in key segments.
- Revenue up 3.3% to $520.5 million
- Net profit after tax rises 39.4% to $46.0 million
- Underlying EBITA growth of 1.3% amid margin pressures
- Fully franked interim dividend declared at 20.0 cents per share
- Net debt increases slightly to $393.6 million with leverage ratio at 1.95x
Solid Revenue Growth Despite Segment Challenges
Amotiv Limited (ASX – AOV) has released its half year results for the six months ended 31 December 2025, reporting a 3.3% increase in revenue to $520.5 million. This growth was underpinned by new business wins, ongoing product development, and geographic diversification, particularly with the full period contribution from South African operations. However, the 4WD Accessories & Trailering and Lighting, Power & Electrical divisions faced headwinds, including domestic inflationary pressures and softer reseller demand in Australia.
Profitability Gains Driven by Operational Efficiencies
Underlying earnings before interest, tax, and amortisation (EBITA) grew modestly by 1.3% to $98.3 million. The 4WD Accessories & Trailering segment experienced a 15.2% decline in underlying EBITA, primarily due to margin compression from delayed price increases and inflation. Conversely, the Lighting, Power & Electrical and Powertrain & Undercar segments delivered EBITA growth of 9.4% and 6.7% respectively, benefiting from the Amotiv Unified program which streamlined operations and reduced costs. Overall, net profit after tax surged 39.4% to $46.0 million, aided by lower significant one-off costs compared to the prior corresponding period.
Balance Sheet and Capital Management
Amotiv’s net debt increased slightly to $393.6 million, reflecting working capital growth and the completion of a share buyback program that repurchased 5% of shares on issue. The company’s leverage ratio edged up to 1.95 times underlying EBITDA but remains within the group’s target range. The Board declared a fully franked interim dividend of 20.0 cents per share, payable on 12 March 2026, signalling confidence in ongoing cash flow generation. The Dividend Reinvestment Plan will not be activated for this payment.
Strategic and Leadership Developments
During the period, Amotiv appointed James Fazzino as Chair following the retirement of Graeme Billings. The company continues to invest prudently in product innovation and geographic expansion, with a focus on the EV business which is on track to break even by the end of FY27. No impairment charges were recorded this half, reflecting stable asset valuations despite prior year write-downs. The company also maintained strong compliance with borrowing covenants and received an unqualified independent auditor’s review.
Looking Ahead
While margin pressures in the 4WD Accessories segment persist, management’s pricing actions and operational efficiencies are expected to support margin recovery in the second half. The company’s diversified portfolio and geographic footprint provide resilience amid challenging market conditions. Investors will be watching closely for updates on the EV segment’s progress and the impact of inflationary trends on profitability.
Bottom Line?
Amotiv’s steady revenue growth and profit surge highlight resilience, but margin recovery and EV business progress will be key to sustaining momentum.
Questions in the middle?
- How quickly will margin improvements materialise in the 4WD Accessories & Trailering segment?
- What is the outlook for the EV business’s path to profitability beyond FY27?
- Will inflationary pressures continue to impact domestic margins in the second half?
