ARB's (ASX:ARB) total sales revenue for the six months ended Dec. 31, 2025, of AU$358 million fell from revenue of AU$361.7 million for the half year ended Dec. 31, 2024, missing expectations, according to a Tuesday report by Jefferies.

Its underlying profit before tax for the six months of AU$58 million also missed expectations, Jefferies said.

The company attributed the fall in profit to lower gross margins due to a weaker Australian dollar compared with the Thai baht.

Though the company's US export sales were "strong," it could not offset the weakness from the other global markets, Jefferies noted.

Jefferies expect the company's business to improve in the second half of the year, but said it lacks clarity on sales and margins.

The firm has a buy rating for ARB and lowered its price target to AU$33 from AU$41.

Shares of the company fell 4% on market close.