Amotiv Limited Unsponsored ADR

Amotiv reported revenue of just over $1 billion, up 2.7%, underlying EBITDA of $195.1 million, up 1.6%, and gross margin of 42.8%, down 1 percentage point year over year. Underlying EPSA rose 4.5%, cash conversion improved to 93.1%, ROCE improved 30 basis points to 13.4%, and leverage ended at 1.85x. Full-year statutory NPAT was $75.1 million, and the final dividend was increased to $0.23 per share, bringing the full-year dividend up 6.2%. For FY27, management guided to modest revenue and underlying EBITDA growth, supported by growing offshore revenue, pricing actions, and Unified benefits, while expecting subdued ANZ conditions to continue. They also said Infinitev remains on track to break even on a run-rate basis by the end of FY27, and that further pricing benefits should skew to the second half.

Graeme Whickman struck an upbeat but cautious tone, saying the company delivered on its FY26 guidance in a tougher-than-expected environment. He emphasized diversification, offshore growth, and Unified as the core strategic pillars, and said the program is shifting from efficiency savings to funding growth engines. He also highlighted that the business is now a more global, streamlined automotive pure play and announced an orderly CEO succession process after 8 years leading the company.

Aaron Canning focused on the quality of the financial result and balance sheet strength. He said gross profit rose 0.4%, operating costs were down 0.9% excluding the higher $4.5 million incentive expense, and significant items totaled $35 million, including a $15.8 million noncash impairment on East Coast Bullbars and $19.9 million of cash significant items. He also pointed to 28.5% net working capital to revenue, inventory actions across divisions, strong cash conversion above 93%, leverage of 1.85x, and refinancing plans to extend debt maturity in FY27.

Analysts pressed management on steel inflation, pricing offsets, and whether consumers were weakening further. Graeme said steel prices had risen by approaching 30% in recent months, but he declined to quantify pricing actions, noting the company is offshoring more production, taking cost out, and implementing out-of-cycle OEM and aftermarket price increases. On consumer demand, he said they are not seeing a material further change from the weak fourth quarter, with July volatile but generally muted in Australia, while U.S. and European demand remains healthier. He also said FY27 guidance is intentionally not pinned to a precise number, but 'modest' could previously mean roughly 0% to 2% to 3% growth, and pricing benefits are expected to be back-end weighted.