Amotiv's FY26: Offshore Wings, Domestic Drag, and a Changing Guard
Amotiv delivers on guidance, recycles capital into growth, and announces CEO succession amid soft ANZ markets.
AOV.AX · Earnings Call · 2026-08-10
Delivering in a Tough Market
Amotiv Limited reported FY26 underlying EBITDA of $195.1 million, exactly the guidance it gave a year ago, as CEO Graeme Whickman noted: “We said that we would deliver approximately $195 million of underlying in FY '26... we've gone on and actually delivered $195.1 million.” — Graeme Whickman, Managing Director and CEO · 2026-08-10 Revenue grew 2.7% to just over $1 billion, driven by wheel drive new business wins and a fast-rising offshore contribution now at 18% of sales. Cash conversion was exceptional at 93.1%, up 2.5 points, and the company returned $74.8 million to shareholders while still reducing leverage to 1.85x.
The cash generation was resilient... nearly 93-ish percent and net funded.
Portfolio Optimisation and Capital Allocation
The result was underpinned by the Amotiv Unified program, which delivered $15 million net benefits and is evolving from an efficiency engine to a growth funder. Management also made decisive portfolio moves: increasing its stake in Vietnamese filtration manufacturer VAFI to 40%, divesting subscale East Coast Bullbars and Twisted Throttle, and using the proceeds to deepen vertical integration and support U.S. growth under brands like Vision X.
In the 4WD division, margins were pressured by steel inflation and a weaker ANZ market, but second-half margins recovered to 14.9% on annualised pricing. As Whickman explained, “We've seen some pretty extreme steel price increases in the last 3, 6 months, approaching the 30% mark.” — Graeme Whickman, Managing Director and CEO · 2026-08-10 The company is aggressively expanding its Chinese OEMs coverage, now supplying towbars and accessories to virtually every Chinese brand entering Australia, while also winning European OE contracts sourced from Thailand.
CEO Transition and Outlook
Whickman announced he will step down as Managing Director and CEO after almost nine years, with a structured transition through mid-2027. He framed the move as a sign of strength: “I've led Amotiv for 8 years, and I believe it's the right time for me to begin that next chapter of my career and for the company to go and find its next leader.” — Graeme Whickman, Managing Director and CEO · 2026-08-10
Looking to FY27, management guided to modest revenue and underlying EBITDA growth, with pricing benefits skewed to the second half and further Unified savings. The company expects continued offshore growth to offset subdued ANZ conditions, while the exit rate across divisions suggests momentum is building. With a clean balance sheet, a proven capital allocation framework, and an orderly leadership transition, Amotiv is positioning itself for the next phase of its transformation.