Earnings call transcript: ARB H2 2026 profit recovery lifts shares 16%

ARB Corporation reported improved profit in the second half of its 2026 financial year, despite a decline in overall revenue and earnings. The Australian 4x4 accessories maker revealed a 3.8% drop in sales revenue to AUD 702 million for the year ended June 30, compared to a 27.2% decrease in OEM sales and a 3.8% decline in domestic aftermarket sales.

However, the company's gross margin recovery in the second half, stronger U.S. sales, and a robust balance sheet helped offset the negative impacts of weaker domestic vehicle demand and reduced consumer spending. ARB's stock price surged 16.15% to $21.94 following the earnings call, reflecting investor confidence in the company's margin recovery, cash position, and growth plans.