ARB (ASX:ARB) said it expects to report an underlying profit before tax for the first half of fiscal year 2026 of around AU$58 million, falling 16.3% year-over-year, due to lower gross margins driven by the weaker Australian dollar compared with the Thai baht as well as lower factory overhead recoveries, according to a Tuesday Australian bourse filing.

The profit expectation excludes one-off items, including the gain on the sale of a property during the half of AU$1.3 million before tax, and costs, including goodwill impairment of AU$2.2 million before tax following the termination of the Thule distribution agreement in November 2025.

The firm's unaudited management accounts for the half-year ending Dec. 3, 2025, showed total sales revenue of AU$358 million, down 1% year-over-year. Sales to the Australian aftermarket channel declined 1.7%, while company sales to the original equipment manufacturer channel in Australia fell 38.2%. Sales to the export channel rose 8.8% over the period, with sales into the key US market jumping 26.1%.

Its shares fell 10% in early trading on Tuesday.