ARB Corp Ltd
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $< | LOCK|>wW? | LOCK|n!?<c#@l |
ARB Earnings: Gross Margin Improvement, but Export Markets Not as Strong
ARB returned to profit and revenue growth in fiscal 2024. Revenue grew 3% to AUD 693 million—marginally below the fiscal 2022 sales peak of AUD 695 million. Top-line growth was largely driven by continued strength in the core Australian aftermarket business and a rebound in original equipment manufacturing, offset by continued weakness in export markets—particularly the US and China. Improved new vehicle supply was a tailwind, with new Australian vehicle sales about 13% higher than in fiscal 2023. There was particularly strong growth in key models in ARB’s target market, notably in sales of the top-two most popular models, Ford Ranger and Toyota Hilux, up 35% and 15%, respectively.
