ARB Corporation (ARB) – EVs take the charge

ARB Corporation designs, manufactures and sells motor vehicle accessories and light metal engineering works, with a focus on the 4WD market. It has operations in Australasia, the US, Thailand, the Middle East, the UK and Europe. ARB was incorporated in 1975 and is based in Kilsyth, Australia.

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Australian new vehicle sales rose a modest 0.4% on the pcp to 100,939 units in Aug-26, underpinned by a record number of EVs within the month. Most ARB-relevant models remain weak; Toyota HiLux sales were flat (+0.2% pcp), while the Ford Ranger declined significantly (-50.6%). That said, supply of Toyota vehicles appears to be improving with exports to Oceania increasing, consistent with management’s expectations of improved supply in 2H CY26. According to the FCAI, new vehicle sales increased 0.4% on the pcp to 100,939 units in Aug-26, driven by continued momentum in EV sales. SUVs continued to be the biggest driver of growth, growing 9.5% on the pcp. Passenger vehicles also contributed to growth (+2.9%) while other segments of light commercial vehicles (-22.1%) and heavy commercial vehicles (-17.4%) declined.

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ARB-relevant vehicle sales declines accelerated into August (-24.1%), for the second largest monthly decline of this calendar year. Key vehicles sales of the Toyota HiLux were broadly flat (+0.2%) while the Ford Ranger declined (-50.6%). ARB expect FY27 key vehicle sales to be broadly in line with FY26, with upside from improved Toyota supply. While the recent VFACTS data displays weak sales for ARB's key vehicle models, we have seen exports of Toyota vehicles to Oceania increase over May-Jul 26. We forecast earnings growth to return in FY27 assisted by improved supply, strong gross profit margins and continued offshore expansion.

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