ABT Reports 24% Product Sales Growth and 25% Profit Rise in Q2 FY25

Strong Financial Momentum in Q2 FY25

Advanced Braking Technology Ltd (ABT) has delivered a compelling performance in the second quarter of fiscal year 2025, reporting a 24% uplift in product sales revenue to $4.2 million compared to the prior corresponding period. This growth was complemented by a 25% increase in underlying net profit after tax (NPAT), reaching $0.12 million, reflecting improved operational leverage and enhanced productivity.

The company’s total sales, including installation and services, rose 21% to $4.3 million, while cash reserves strengthened to $2.4 million, up 21% year-on-year. These figures underscore ABT’s effective execution of its growth strategy amid a competitive global market.

Global Expansion and Market Penetration

ABT’s international revenue now accounts for 56% of product sales, a significant increase from 42% in the previous comparable period. This shift is driven by strategic engagements with blue-chip customers across North America, Southeast Asia, and North Asia. The company is actively expanding its footprint in key mining regions including South Australia’s Copper belt, Western Australia’s Goldfields, Indonesia, Mongolia, South Africa, Canada, and Ghana.

Notably, ABT is deploying its Sealed Integrated Braking System (SIBS) with tier-one mining operators in Indonesia and Mongolia, diversifying vehicle applications and deepening market penetration. Africa remains a critical focus, particularly for Hilux and LandCruiser fleets on large mining operations, positioning ABT as a technology leader in this emerging market.

Innovation with BrakeiQ Launch

October 2024 marked a milestone with the international launch of BrakeiQ, ABT’s cutting-edge automatic braking system designed to integrate seamlessly with Collision Avoidance Systems (CAS). This 'plug and play' technology is expected to diversify ABT’s revenue streams and complement its existing safety product portfolio.

During the initial ramp-up phase, ABT has forged key partnerships in Australia, South Africa, and North America, laying the groundwork for future growth. The company’s investment in BrakeiQ reflects a strategic commitment to innovation and safety technology leadership in heavy vehicle fleets worldwide.

Financial Discipline and Operational Efficiency

ABT’s financial discipline is evident in its management of working capital and financing. The company renewed its NAB Trade Loan facility for another 12 months, drawing down $607,000 in December 2024 to fund inventory for BrakeiQ. The facility is secured against company assets and debtors, with repayment due in April 2025.

Operational efficiencies and tactical business development have driven improved returns on invested equity, supporting ABT’s sustainable growth ambitions. The company’s management highlights the importance of cross-functional collaboration, which has been instrumental in achieving recent product launches and sales targets.

Looking Ahead

CEO Andrew Booth expressed optimism about ABT’s growth prospects, particularly in expanding Asian, African, and American markets. With an unprecedented pipeline of deals for the second half of FY25, the company is well-positioned to capitalize on rising demand for technology-led safety solutions.

As ABT continues to execute its strategic roadmap, investors will be watching closely how the integration of BrakeiQ and expansion of SIBS installations translate into sustained revenue growth and margin improvement.