ARB Corporation's US Push Survives a Harsh Profit Downgrade

Fund managers say strong US retail growth is being overshadowed by weaker Australian sales and margin pressure

31 Mar 2026 · 4 min read

Fifty years after starting in a Melbourne garage, ARB Corporation is pushing hard into the US 4WD accessories market through a hard-won retail acquisition, even as a disappointing trading update in January 2026 sent its share price sharply lower.

Fifty years on, a US retail push takes shape

Selector Funds Management's August 2025 review marked ARB's 50th anniversary since its founding in the Brown family garage in Ringwood, noting a decade-long compound annual growth rate of 8.3 per cent in both revenue and profit. The bigger story, though, was the completion of ARB's US retail push: having raised its stake in Off Road Warehouse from 30 per cent to 50 per cent by acquiring 4 Wheel Parts out of bankruptcy in September 2024, ARB now controlled 48 US retail stores and over 500 employees, with the Americas division's FY25 revenue up 20.7 per cent to $88.1 million.

With ARB having completed the acquisition of a 50% shareholding in a major US auto retail business, the pieces for ARB are falling into place. Branded product, key partnerships with FORD and Toyota, online capability and now the retail footprint sets up ARB for a long runway of growth in the larger US market.

— SG Hiscock & Company, Monthly Report, August 2025

A Toyota partnership adds brand distribution reach

Selector's update also highlighted ARB's partnership with Toyota through the Trailhunter off-roading trim, spanning the 4Runner and Tacoma models across more than 1,200 Toyota dealerships and exceeding expectations, alongside a store-in-store rollout within 4 Wheel Parts outlets to build brand awareness. Hayborough Investment Partners' own August 2025 view was similarly upbeat, arguing the difficult, industry-driven period of the past couple of years was coming to an end, with the US acquisition set for great success in a large market.

A weak trading update wipes out much of the optimism

That optimism did not survive January 2026. Ellerston Capital reported ARB's trading update guided to first-half profit before tax of $58 million, 15 per cent below consensus, with second-quarter trading decelerating across all segments, citing softer sales across key models, fitting constraints in Australia, OEM contract timing, a weaker Australian dollar against the Thai Baht, and lower factory overhead recovery. Shares fell 12 per cent on the day, and continued lower as investors sought clarity given ARB's then-premium valuation of 23.5 times expected 2026 earnings.

ARB, the largest local 4WD accessories provider, reported a very disappointing trading update which guided to 1H26 PBT of $58m, 15% below consensus at $68m, with 2Q26 trading decelerating across all segments. There was nothing good in the result, with ARB citing softer sales in all key models, continued fitting constraints in Australia, timing of model releases within its OEM operations, the weaker AUD vs THB and lower factory overhead recovery as the major negative drivers.

— Ellerston Capital, Monthly Report, January 2026

The US business is the one bright spot managers still cite

Akambo's own January 2026 read on the same update found a silver lining the market largely ignored: US sales grew 26 per cent, a result Akambo saw as strong and expected to continue, even as the stock fell almost 18 per cent that month on a harsh reaction. Selector Funds Management's own update confirmed the pattern, with export sales up 9 per cent and US sales specifically up 26 per cent, against a 1.7 per cent decline in Australian aftermarket sales. By March 2026, managers were split on what came next: LSN Capital Partners exited its position amid a more cautious near-term view, while Flagship Investments increased its exposure, citing conviction in ARB's long-term growth prospects despite the near-term earnings pressure.