Amotiv Ltd Q4 2026 Earnings Recap

Amotiv’s shares dropped 12.6% following the earnings release, driven primarily by disappointing margin compression and a cautious outlook amid subdued ANZ market conditions. Despite meeting revenue and EBITDA targets, investors reacted negatively to profit pressures and cautious growth guidance.

Key Takeaways

• Revenue rose 2.7% to just over $1 billion, supported by volume gains in filtration, 4-wheel drive new business wins, and offshore growth reaching 18% of total revenue.
• Underlying EBITDA was $195.1 million, essentially flat with a slight increase of 1.6%, in line with prior guidance but impacted by margin compression; gross margin declined by 1 percentage point to 42.8%.
• Pricing improvements in 4-wheel drive and PTU helped margins in H2, but early-year cost increases ran ahead of these pricing actions.
• Cash generation remained strong with a 93.1% conversion rate, enabling a $75 million return to shareholders and further leverage reduction.
• FY ’27 outlook suggests only modest growth in revenue and EBITDA, reflecting ongoing challenging conditions in ANZ despite offshore growth and pricing benefits, signaling cautious investor sentiment.