Amotiv Limited

Reported revenue grew 2.7% to just over $1 billion. Underlying EBITDA increased 1.6% to $195.1 million, slightly above the approximately $195 million guidance. Gross margin was 42.8%, down 1 percentage point year over year. Underlying EPSA grew 4.5%, cash conversion was 93.1%, ROCE improved 30 basis points to 13.4%, and leverage was 1.85x. FY27 guidance is for modest revenue and underlying EBITDA growth, supported by growing offshore revenue, pricing actions, and Amotiv Unified benefits, partly offset by subdued ANZ conditions; management also said pricing benefits will be weighted to the second half.

Graeme Whickman framed FY26 as evidence that the diversification strategy is working, with offshore revenue now 18% of sales and the business less exposed to any single market or powertrain transition. He said Unified has evolved from a pure efficiency program into one that funds growth engines, and he sounded confident that offshore wins, pricing actions, and continued execution can offset soft ANZ trading. He also announced he will step down as CEO and described the transition as orderly, with the company now in a strong position for the next phase.

Aaron Canning said gross profit rose 0.4% and that margin improvement in the second half was helped by 4WD OEM pricing, LPE’s regular domestic pricing cadence, and a full six-month benefit from Vision X’s 10% post-tariff price increase in the U.S. Operating costs fell 0.9% despite $4.5 million of higher incentives; excluding those incentives, costs would have been 3% lower. He highlighted $35 million of significant items, including a $15.8 million noncash impairment on ECB Bullbars, and said cash conversion was just over 93%, inventory increased $12.4 million year over year but improved in the second half, and leverage ended at 1.85x with refinancing underway.

Analysts focused on steel costs, pricing offsets, and whether the Australian consumer had weakened further. Management said steel prices had risen sharply, “approaching the 30% mark,” and responded by offshoring more production, cutting costs, and implementing out-of-cycle OEM and aftermarket pricing, while noting the 4WD division’s exit margin improved in the second half. On demand, management said they were not seeing a material change in consumer behavior in early Q1 FY27 versus the soft Q4 pattern, and emphasized that the 4WD business remains well positioned because it now supplies almost all major Chinese OEMs in the market.