Amotiv Limited

FY26 reported revenue was just over $1 billion, up 2.7% year over year. Underlying EBITDA was $195.1 million, up 1.6% and in line with guidance; gross margin was 42.8%, down 1 percentage point. Underlying EPSA rose 4.5%, cash conversion improved to 93.1%, ROCE was 13.4% (up 30 basis points), and leverage at June was 1.85x. Dividends increased, with the final dividend lifted by $0.01 to $0.23 per share and full-year dividends up 6.2%; $74.8 million was returned to shareholders in FY26. For FY27, management expects modest revenue and underlying EBITDA growth, with offshore growth, pricing and Unified benefits offsetting subdued ANZ conditions; they also said stronger pricing benefits will skew to the second half, while Infinitev remains on track to break even on a run-rate basis by the end of FY27.

Graeme Whickman struck a positive but measured tone, saying the group delivered against guidance in a more difficult market and that the business is more diversified, more global and more streamlined than when he joined. He highlighted offshore revenue reaching 18% of sales, the Unified program shifting from efficiency toward funding growth engines, and the company’s ability to recycle capital into higher-return opportunities. He also emphasized that the business is positioned for continued offshore growth and that FY27 should see modest growth despite subdued ANZ conditions.

Aaron Canning focused on the quality of the financial performance: revenue up 2.7%, gross profit up 0.4%, operating costs down 0.9% despite $4.5 million of higher incentives, and underlying EBITDA at $195.1 million. He noted significant items of $35 million, including a $15.8 million noncash impairment on the ECB Bullbars divestment, with cash significant items just under $20 million; tax expense rose 12.6% and the effective tax rate was 27.7%. He also highlighted strong balance-sheet metrics: net working capital at 28.5% of revenue, inventory up $12.4 million but improving into the second half, cash conversion just over 93%, and leverage at 1.85x, with refinancing underway to extend maturity.

Analysts pressed on steel inflation, Thai baht tailwinds and the amount of pricing needed in FY27; management said steel costs have risen by approaching 30% in the past 3 to 6 months and that it is offshoring, taking cost out and implementing out-of-cycle OEM and aftermarket pricing, but would not disclose pricing quantum for commercial reasons. They were also asked about the Aussie consumer, and Graeme said they are not seeing a material change into early Q1 FY27, describing demand as still muted. On the outlook, management said “modest” is not being quantified, but in prior language it could imply roughly 0 to 2-3 growth, and they reiterated that pricing benefits will be back-end weighted because of customer notice periods. On 4WD, management said the market is unlikely to bounce back soon and that planning assumptions remain cautious, even as the company continues to win business with Chinese OEMs and offshore programs.