Amotiv Limited (ASX: AOV) delivered a solid FY26 with a $75.1 million net profit, reversing last year’s loss, underpinned by 2.7% revenue growth and strong cash conversion. The company declared a fully franked 23 cent final dividend and advanced its Amotiv Unified transformation and climate initiatives.
- Statutory net profit after tax of $75.1 million, a sharp turnaround from FY25 loss
- Revenue grew 2.7% to $1.02 billion, driven by offshore markets and product development
- Amotiv Unified program delivers $25 million in cumulative gross annualised benefits
- Final dividend increased to 23 cents per share, fully franked
- CEO Graeme Whickman to step down in December after eight years
Profit Turnaround and Dividend Boost
Amotiv Limited (ASX:AOV) has swung back to the black in FY26, reporting a statutory net profit after tax of $75.1 million, a stark reversal from the $106.3 million loss posted the previous year. This improvement was driven by a 2.7% rise in revenue to $1.02 billion and an underlying EBITA increase of 1.6% to $195.1 million, in line with company guidance.
The company’s strong cash generation was a highlight, with cash conversion climbing 2.5 percentage points to 93.1%, supporting a reduction in net debt by $6.8 million to $376.5 million and an improved leverage ratio of 1.85 times. This financial strength enabled Amotiv to return $74.8 million to shareholders through dividends and the completion of a 5% on-market share buyback.
Reflecting confidence in the business, the Board declared a fully franked final dividend of 23 cents per share, payable 15 September 2026, lifting the full-year dividend to 43 cents, a 6.2% increase over FY25.
Segment Performance and Offshore Growth
Amotiv’s three core divisions showed mixed results amid challenging market conditions. The 4WD Accessories & Trailering segment grew revenue 3.8% to $368.5 million but saw a 10.9% decline in underlying EBITA, mainly due to margin pressure from lower original equipment volumes and increased depreciation linked to offshore capacity expansion. New business wins, including supply to Chinese OEMs such as BYD’s Shark 3.5T, helped offset softness in Australian and New Zealand pickup volumes.
The Lighting, Power & Electrical division delivered an 11.1% underlying EBITA uplift to $75.2 million on broadly flat revenue of $315.9 million, driven by growth in the US and European markets and cost efficiencies from the Amotiv Unified program. Vision X, part of this division, secured a partnership as the official lighting supplier to CFMOTO USA, bolstering its offshore footprint.
Powertrain & Undercar continued to outperform with 4.7% revenue growth to $339.5 million and a 2.1% increase in underlying EBITA to $78.8 million. The segment benefited from strategic price increases, strong demand in filtration and brakes, and accelerating electric vehicle repair contributions through its Infinitev business, which is on track to break even by the end of FY27.
Amotiv Unified Transformation and Climate Initiatives
The Amotiv Unified transformation program, initiated in early 2025, has now delivered $25 million in cumulative gross annualised benefits, with $10 million reinvested into brand development, new product development, and capability building. These efficiency gains helped reduce corporate costs by 3.4% and are expected to fund growth initiatives in FY27 and beyond.
In a first for the company, Amotiv released its Climate-related Disclosures Report alongside the annual results. The report outlines governance structures, risk assessments, and a target to achieve carbon neutrality across Scope 1 and 2 emissions by 2028; two years ahead of the original 2030 goal. The Group’s emissions footprint is dominated by purchased electricity, and it plans to combine renewable energy procurement, onsite renewables, energy efficiency, and carbon credits to meet its target.
Leadership Transition and Outlook
Amotiv also announced that Managing Director and CEO Graeme Whickman will step down in December 2026 after eight years at the helm. Mr Whickman has overseen the company’s transformation into a global pure-play automotive parts group with international revenue now at 18% of total sales. The Board has commenced a comprehensive search for his successor, with Mr Whickman remaining available as a consultant through FY27 to ensure a smooth transition.
Looking ahead, Amotiv expects modest revenue and underlying EBITA growth in FY27, supported by ongoing offshore expansion, pricing actions, and further benefits from the Amotiv Unified program. However, subdued trading conditions in Australia and New Zealand are anticipated to persist, alongside geopolitical uncertainties such as the Middle East conflict.
The company’s strategic focus remains on leveraging its diversified portfolio, expanding international markets, and maintaining disciplined capital management to drive sustainable shareholder returns.
Bottom Line?
Amotiv’s FY26 profit rebound and dividend lift come amid ongoing transformation and climate commitments, but the upcoming CEO change and modest FY27 outlook inject fresh uncertainty.
Questions in the middle?
- How will Amotiv manage the CEO transition to maintain strategic momentum?
- Can offshore growth and Amotiv Unified efficiencies offset subdued ANZ market conditions in FY27?
- Will the accelerated carbon neutrality target by 2028 materially impact operational costs or competitiveness?