ARB Corporation (ASX:ARB) Expands Global Footprint with Strategic Acquisitions and E-Commerce Push

Highlights

• ARB’s revenue rose 7% YoY to AUD 366.7 million in 1HFY25, driven by export and aftermarket sales.
• Interim dividend increased by 6.3% to 34.0 cents despite a slight dip in profit after tax.
• ARB USA is impacted by U.S. tariffs but does not expect a material hit to FY25 results.
• The company expands footprint through acquisitions in the U.S. (4WP and ORW) and Australasia (MITS Alloy).

ARB Corporation Limited (ASX:ARB) is an ASX-listed company that designs, manufactures, and distributes premium 4WD and motor vehicle accessories. In the half-year ended 31 December 2024 (1HFY25), ARB reported total revenue of AUD 366.7 million, marking a 7.0% YoY increase from AUD 342.7 million in 1HFY24. During the reported period, export sales increased by 15.4% YoY and Australian Aftermarket sales jumped 1.9% YoY.

In 1HFY25, the company recorded 0.6% YoY dip in profit after tax to AUD 50.9 million, driven by an 18% increase in employee expenses due to strategic investments. ARB raised its interim dividend by 6.3% to 34.0 cents per share in 1HFY25.

Navigating Global Tariff Impacts

On 4 April 2025, ARB addressed the potential operational impacts of U.S. Government tariffs on imported goods. The company’s U.S. subsidiary, ARB USA, which sources products from Australia and Thailand, is affected by non-cumulative tariffs. However, ARB stated that it does not foresee a material impact on FY25 results and will continue monitoring the broader implications.

Strategic Growth Through Acquisitions and Innovation

The acquisition of 4 Wheel Parts (4WP) and a larger stake in Off Road Warehouse (ORW) have significantly bolstered ARB’s U.S. footprint, bringing its U.S. presence to 53 stores and increasing e-commerce capabilities. Domestically, the purchase of MITS Alloy and new retail locations in Toowoomba and Christchurch have expanded its product offerings and geographic reach across Australia and New Zealand.

In parallel, ARB is enhancing its product range and accelerating investments in e-commerce and technology. The anticipated launch of a new e-commerce platform is expected to unlock fresh revenue streams by capturing global demand and evolving customer preferences.

Share performance of ARB

ARB shares ended the session 0.26% lower at AUD 30.58 on 14 April 2025. The stock has fallen by 22.86% over the past year and is down 24.70% year-to-date. It peaked at a 52-week high of AUD 48.11 on 30 September 2024 and hit its 52-week low of AUD 27.15 on 7 April 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 14 April 2025. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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