ARB

(AI video summary)

This video was created on 20 January 2026 for IG audiences by ausbiz.

ASX code: ARB

ARB faces challenges as profitability declines

ARB Corporation, known for its four-wheel-drive accessories, is encountering significant market challenges. The company's shares dropped to a three-year low after forecasting lower first-half earnings. Total sales revenue fell by 1% to $359 million, with an expected underlying profit of $58 million for the financial year (FY) 2026, down 16% from the previous year.

Key performance factors

ARB attributes its profit decline to two main factors: reduced gross margins due to a weaker Australian dollar and increased inventory levels, which are causing challenges in the United States (US) market. These financial pressures have caught the attention of analysts who note that ARB's historical reputation as a growth leader does not align with its current performance.

Investment outlook

As ARB Corporation approaches its half-year results on 24 February, both analysts and investors are monitoring its response to ongoing challenges and assessing its potential for regaining growth status amid economic pressures.