ARB is a high-quality, debt-free 4x4 accessories franchise temporarily constrained by Australian execution issues, with international expansion supporting an attractive 5-year risk/reward.
Overview
ARB Corporation is a 50-year Australian designer, manufacturer and distributor of premium 4x4 and light-commercial-vehicle accessories, with revenue split across Australian Aftermarket, Export and OEM channels. Australian Aftermarket represented 55.6% of FY2026 sales, Export 38.2% and OEM 6.2%, giving the business meaningful geographic and customer diversification. **FY2026 was a cyclical and execution-driven setback:** revenue fell 3.8% to A$702.0 million, PBT declined 8.9% to A$123.0 million and NPAT fell 5.2% to A$92.4 million, but gross margin expanded to 57.6% from 56.7% and EPS of A$1.11 beat consensus by 10%. **The balance sheet remains a major support**, with A$47.9 million of net cash and zero debt. At A$18.11, valuation was 16.3x trailing P/E, 10.4x EV/EBITDA and a 3.76% fully franked dividend yield. Near-term catalysts include fitter availability, improved Toyota Prado and LandCruiser supply, US OEM programs, order-book recovery and AUD/THB stabilization. Consensus 12-month targets were A$22.00 to A$25.82, while the report’s five-year base case implies A$27.00 plus dividends.