ARB (ASX:ARB) is expected to report a "tepid" first half of fiscal year 2026 result for Australia's aftermarket business, according to a Wednesday note by Jefferies.

Jefferies said that sales of newly accessorized four-wheel-drive vehicles were flat during the 2025 calendar year, and sales of newly accessorized four-wheel-drive vehicles increased by 2% in the first half of fiscal 2026.

The investment firm said that while this performance is not particularly weak, it represents a continuation of relatively subdued sales. Sales of new vehicles are only one component of ARB Corporation's Australian aftermarket business, the note added.

Jefferies kept a buy rating on ARB with a price target of AU$41.