Advanced Braking Technology Ltd has corrected its half-year results to reveal a robust 55.2% increase in earnings per share, alongside a strong 27% revenue growth driven by demand for its safety braking systems.
- 27% increase in half-year revenue to $11.1 million
- 55.2% rise in basic earnings per share
- 61.6% growth in net profit after tax to $0.54 million
- Stable gross profit margins near 49%
- 44% increase in cash reserves to $4.1 million
Strong Half-Year Performance Amid Correction
Advanced Braking Technology Ltd (ASX: ABV), a Perth-based leader in vehicle safety systems, has issued a correction to its recently released half-year financial results, clarifying a significant 55.2% increase in basic earnings per share. This adjustment underscores the company's strong operational momentum during the first half of fiscal 2026.
The company reported record revenue growth of 27%, reaching $11.1 million, propelled by heightened demand for its signature SIBS Failsafe braking systems. New brake sales climbed 25.8%, while spares and consumables increased by 28.4%, reflecting broad-based strength across product lines.
Profitability and Operational Efficiency
Profitability metrics also improved markedly, with net profit after tax (NPAT) rising 61.6% to $0.54 million. This was supported by disciplined cost management and stable gross profit margins holding steady at 48.7%, a slight improvement over the prior year. The company’s ability to maintain margin levels amid revenue growth signals operational efficiency and effective pricing strategies.
Cash generation was robust, with cash and cash equivalents increasing 44% to $4.1 million. This strong liquidity position is bolstered by $0.6 million in research and development tax incentives, providing a solid foundation for ongoing product development and growth initiatives.
Outlook and Strategic Positioning
Advanced Braking’s balance sheet strength and cash reserves position it well to continue expanding its footprint in safety-critical industries such as mining, defence, and civil construction. The company’s innovative braking solutions, known for safety, zero emissions, and durability, have gained traction internationally, with usage spanning all seven continents.
While the announcement stops short of detailed forward guidance, the corrected earnings per share figure and sustained revenue momentum suggest confidence in the company’s growth trajectory. Investors will be watching closely for updates on contract wins and further product developments that could drive future earnings.
Bottom Line?
Advanced Braking’s corrected results reinforce its growth story, but investors await clearer guidance on the next phase of expansion.
Questions in the middle?
- What impact will ongoing R&D investments have on future profitability?
- How sustainable is the current revenue growth amid global economic uncertainties?
- When will the company provide detailed guidance or announce new contracts?