Amotiv (ASX:AOV) reported what management described as a “solid result” for the half-year ended December 31, delivered amid a challenging operating environment and supported by its multi-year push to diversify revenue geographically and by end market. Chief Executive Officer Graeme Whickman said the company’s Amotiv Unified transformation program continued to generate incremental cost and operational benefits that helped mitigate macro pressures at the segment level.
Group performance and FY26 guidance reiterated
On a group basis, revenue increased 3.3% organically, which Whickman said was underpinned by new business wins, ongoing product investment, and a higher contribution from offshore markets. Underlying EBITDA was AUD 98.3 million, marginally higher than the prior corresponding period, with management pointing to inflationary pressures in the domestic four-wheel drive business and ramp-up impacts from the South African plant as key drags on margins.
Amotiv maintained its FY26 guidance. Management reiterated expectations for revenue growth and underlying EBITDA of approximately AUD 195 million. Whickman said the first-half/second-half EBITDA skew is expected to be “broadly balanced,” while acknowledging mixed tailwinds and headwinds across divisions.
Capital returns, cash conversion, and balance sheet
Management emphasized cash generation and capital returns. Canning said cash conversion was just under 92%, ahead of guidance, and the company expects full-year cash conversion to be in line with, or ahead of, its capital allocation target of 75% or more.
Underlying EPSA increased 5.3%, helped by earnings and a lower share count following completion of a 5% buyback program during the half. The board declared an interim dividend of AUD 0.20 per share, representing more than 8% growth and a 52% payout ratio. Management said approximately AUD 48 million was returned to shareholders during the period through dividends and buybacks.
Net leverage was 1.95x, up 0.2 turns since December 2024 but still within the company’s target range of 1.5x to 2.25x. Canning said the increase was largely due to buyback completion and additional investment in new jurisdictions via working capital and operating expenses. He added that the company’s debt profile remains long-dated, with nearly two-thirds fixed, limiting the sensitivity to interest rate changes.
Divisional results: four-wheel drive margins pressured, LP&E offset by offshore growth, powertrain resilient
Four-wheel drive: Revenue increased 5.5%, driven by new business wins, a full period of South African revenues (not present in the prior corresponding period), and continued towbar wins in Australia. However, underlying EBITDA declined by just over 15% (or 12% excluding an approximately AUD 1 million doubtful debt provision for an RV customer), and margins fell 290 basis points. Whickman said the key issue was delayed price realization versus domestic cost inflation, with out-of-cycle OEM pricing secured at the end of Q2. Management expects margins to improve from the second half as pricing takes effect and Amotiv Unified actions continue.
Whickman also discussed softer pickup sales trends. Pickups were flat for the half net of BYD Shark in Australia and New Zealand, and down 7% net of BYD in January alone. He noted January sales were slightly below expectations, with several leading models down materially. In Q&A, management said it typically has 2–3 months of forward visibility on new vehicle sales and that January can be volatile.
Strategically, Whickman said the company’s relationships with Chinese OEMs are deepening, and that most Chinese OEMs in the market outsource towbar supply (with BYD cited as an exception due to self-supply). He also announced Amotiv had secured its first European towbar OEM contract to be supplied from Thailand, with volumes expected in FY27. Export volumes from Thailand into the U.S. were also described as building, supported by growing U-Haul demand expected to continue into FY27.
Lighting, power and electrical (LP&E): Management said ANZ market conditions remain challenging, particularly in reseller channels, but offshore growth and Amotiv Unified execution provided an offset. Lighting revenue increased 1% on growth in the U.S. and Europe; power management revenue increased 3% reflecting product investment and U.S. growth; and electrical accessory revenue declined 4% on softer Australian reseller demand and ranging changes, with management noting emerging “flight to value” dynamics.
Despite the revenue mix, LP&E underlying EBITDA increased nearly 9.5%, and margins expanded 210 basis points, which management attributed largely to Amotiv Unified benefits and a leaner Australian operating model. Total operating costs in the division were down about 12% versus the prior period. Looking ahead, Amotiv expects subdued ANZ reseller conditions to persist in the second half while U.S. and European growth continues. Management said the full benefit of Q2 tariff-related price increases is expected to flow through in H2, with modest additional price increases anticipated from Q4, while H2 underlying EBITDA is expected to be marginally softer than H1 but slightly above the prior corresponding period.
Powertrain and undercarriage: Management described performance as “pleasing,” pointing to the resilience of the wear-and-repair market and ongoing diversification. Revenue rose 4.9%, supported by volume and the annualization of pricing actions across select product categories. Whickman cited strength across categories such as filtration, brakes, and gaskets, and noted New Zealand revenue grew 12% due to enhanced distribution and ranging outcomes. Underlying EBIT increased 6.7%, supported by Amotiv Unified consolidation benefits and reduced EV investment.
Management said EV investment was moderated further in line with market dynamics, and reiterated that the EV business is targeted to reach break-even on a run-rate basis by the end of FY27. In Q&A, Canning indicated the expected FY26 loss for the EV business was between AUD 1 million and AUD 2 million.
Amotiv Unified: further benefits and ongoing restructuring costs
Canning said significant items totaled AUD 8.3 million, largely tied to restructuring and execution of Amotiv Unified initiatives. He noted that a further 50 employees departed during the half, predominantly across powertrain and undercarriage and LP&E, as the company simplified its operating model. Management said further one-off costs are expected as the multi-year program continues but should moderate over the medium term.
Amotiv also announced it expects to generate an incremental AUD 10 million in annualized gross benefits from Amotiv Unified on exit of FY26, in addition to previously disclosed benefits. Canning said the timing results in an incremental net AUD 1 million EBITDA benefit in FY26, with gross benefits partly reinvested into IT simplification, warehouse consolidations, and program management resourcing. In Q&A, management said second-half significant items are expected to be broadly similar to the first half, potentially slightly lower.
Trading update: mixed demand signals, offshore momentum
Whickman said January pickup sales in ANZ were softer than expected, while LP&E reseller and OE channels in Australia remained subdued across segments including truck, bus, and RV. By contrast, management said momentum continued in the U.S. and Europe, and powertrain wear-and-repair demand remained resilient, with forward workshop bookings described as stable at around 1–2 weeks.
Management reiterated that, despite the challenging environment, it expects four-wheel drive margins to improve in the second half as pricing actions and transformation benefits take hold, while continuing to pursue revenue diversification through offshore growth initiatives.
About Amotiv (ASX:AOV)
Amotiv Limited, through its subsidiaries, manufactures, imports, distributes, and sells automotive products in Australia, New Zealand, Thailand, South Korea, France, and the United States. It operates through Automotive, Auto Pacific Group (APG), and Davey segments. The Automotive segment offers automotive and heavy-duty filters for cars, trucks, and agricultural and mining equipment; automotive electrical and lighting products; and fuel pumps and associated products and accessories for the automotive after-market.
