ARB Corporation (ARB) - Sales continue to weaken

ARB Corporation manufactures and sells motor vehicle accessories and light metal engineering works, principally for the 4WD market. The company serves stockists, vehicle dealers, and various fleet operators, as well as owns and a licensed 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 was incorporated in 1975 and is based in Kilsyth in Melbourne.

Australian new vehicles sales declined by 2.7% in December to 95,895, with all states and territories reporting a decrease apart from Western Australia. Total new vehicle sales in2024 were 1,220,607, up 0.31% on a year ago. Overall, following a record year of vehicle sales in FY24, new vehicle sales are expected to continue to slow over the course of FY25. The decline in vehicle sales over recent months, and further declines to come, should be partly offset by ARB's strong order book, its increased store investment and recent acquisition of MITS Alloy. We maintain a Buy rating.

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