AB Dynamics' First Half Performance Mixed, China Testing Business Facing Challenges

LootboxPhobia · 2026-03-12T08:48:04+00:00

AB Dynamics plc announced H1 FY2026 results with sales of £49 million and order intake of £64 million. Despite headwinds in Chinese testing services, the company maintained its full-year EBITA guidance unchanged, with profit margins expected to exceed 20%. Chinese business challenges resulted in approximately £16 million impairment, though net cash increased to £39.3 million.

LootboxPhobia

2026-03-12 08:48:04

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Investing.com – AB Dynamics plc (LON:ABDP) announced a mixed performance for the first half of fiscal year 2026 on Thursday, with sales reaching £49 million. Despite significant headwinds in the Chinese testing services business, the company maintained its full-year EBITA guidance.

During this period, the company’s order intake was £64 million, down 3% from the first half of 2025 but up 45% from the second half of last year.

As of December 31, 2025, order backlog stood at £47 million, up £5 million year-over-year, providing 70% coverage of the revenue forecast for fiscal year 2026.

AB Dynamics stated that customer activity in its testing products division is encouraging, especially in the Asia-Pacific and North American regions.

The company’s simulation division showed positive trading momentum after securing a equipment contract with a major OEM and strong software sales.

However, the testing services division faces significant challenges in China, with new contracts from a European OEM about 50% below expectations, reducing this revenue stream to less than £3 million. The performance of the company’s US testing services business was in line with expectations.

Difficulties in the Chinese business led AB Dynamics to record approximately £16 million in impairment costs, mainly non-cash expenses, and to initiate a strategic review of that segment.

The company confirmed that its FY2026 EBITA is expected to meet the market consensus of £24.4 million, implying an annual profit margin of over 20%. As of February 28, 2026, net cash was £39.3 million, up from £35.5 million on December 31, 2025.

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