ARB Corporation (ARB) – Feb-25 new vehicle sales remain weak

ARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The company serves stockists, vehicle dealers, and various fleet operators, as well as owns and license ARB branded store network. The company has operations in Australia, New Zealand, the United States, Thailand, the Middle East, Europe, and the United Kingdom. ARB Corporation Limited was incorporated in 1975 and is based in Kilsyth, Australia.

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Australian new vehicles sales declined by 9.6% in February to 94,993, with all states and territories experiencing a decline in sales. ARB’s key vehicle sales declined10.3% in February with the LCV market continuing to struggle. Vehicle sales have declined for the past seven months, cycling record sales from 2024. All states and territories reported a decline in sales with key states of NSW and QLD reporting a decline of 6.7% and 10.1% respectively.

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For ARB, sales of its key vehicles were down 10.3%, with the LCV market continuing to struggle. Sales of the top two selling Utes, the Toyota Hilux and the Ford Ranger, experienced sales declines of 17.9% and 24.5% respectively in Feb-25. The decline in vehicle sales over recent months, and further declines to come, should be partly offset by ARB's strong orderbook, new and refurbished stores, further offshore expansion and strategic partnerships with key OEM customers. We maintain a BUY rating.