AB Dynamics FY revenue, adj profit fall less than expected in tough auto market
AB Dynamics FY revenue, adj profit fall less than expected in tough auto market
Overview
UK automotive testing equipment maker's yearly revenue fell 12%, but beat analyst expectations
Adjusted operating profit for the year declined 18%, but beat analyst expectations
Company maintained adjusted operating margin at 20% through operational improvements and cost actions
Outlook
Company expects FY 2027 adjusted operating profit to be in line with current expectations
Board notes ongoing geopolitical and macroeconomic disruption, with automotive headwinds persisting in Europe
Year-end order book of £31m provides visibility into FY 2027
Result Drivers
TARIFFS AND GEOPOLITICAL DISRUPTION - Co said revenue was hit by disruption from tariffs at the start of the year and by geopolitical events and challenging automotive market conditions, especially in Europe, in the second half
OPERATIONAL IMPROVEMENTS AND COST ACTIONS - Co said margin was maintained at 20% due to operational improvements and early cost mitigation actions
SEGMENT PERFORMANCE - Testing Products revenue fell 21% due to market disruption and lack of repeat large order; Simulation revenue rose 10% on hardware and software demand; Testing Services revenue grew 13% driven by mileage accumulation testing
Company press release: ID:nRSJ4285Ca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Beat | GBP 91.6 mln | GBP 91.1 mln (8 Analysts) |
FY Adjusted Operating Profit | Beat | GBP 18.3 mln | GBP 18.2 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Ab Dynamics PLC is GBp1,325.00, about 66.7% above its November 9 closing price of GBp795.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
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Nov 9 - Britain expected to cut 2030 EV sales target to 60%, Guardian says
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)