How Did ABT Achieve 27% Sales Growth and Nearly Double Profits in FY25?
Advanced Braking Technology Ltd (ABT) posted a robust FY25 with sales up 27% and underlying profits nearly doubling, driven by strong international demand and innovation milestones.
- Sales revenue rose 27% to $18.7 million in FY25
- Underlying NPAT surged 87% to $1.08 million excluding R&D tax incentives
- International exports grew 47%, led by Indonesia, Mongolia, and Canada
- BrakeiQ and autonomous brake tech development reached key milestones
- Non-Executive Director Adam Levine resigned after 12 years
Strong Revenue Growth Signals Market Demand
Advanced Braking Technology Ltd (ASX, ABV) has delivered a compelling performance for the financial year ended June 2025, reporting a 27% increase in sales revenue to $18.7 million. This growth was mirrored in the final quarter, where sales climbed 27% to $5.6 million compared to the prior corresponding period. The surge underscores rising global demand for ABT’s safety-critical braking solutions across both domestic and international markets.
Profitability Boosted by Core Operations
While reported net profit after tax (NPAT) rose a modest 5% to $1.78 million, the company’s underlying NPAT, which excludes the Research and Development Tax Incentive (RDTI) income, nearly doubled, climbing 87% to $1.08 million. This divergence reflects ABT’s expectation that it will not receive the RDTI rebate in FY26 due to tax group consolidation changes. The underlying profit growth highlights disciplined cost management and sustained strong gross margins across ABT’s diverse product portfolio.
International Expansion and Innovation Drive Future Growth
ABT’s international export revenue grew an impressive 47%, with key markets including Indonesia, Mongolia, and Canada. The company also expanded its footprint in Papua New Guinea, Mali, Burkina Faso, and sub-Saharan Africa. On the innovation front, ABT achieved significant development milestones for its BrakeiQ product and autonomous brake technologies, positioning the company well for future technology trends in vehicle safety.
Strategic Milestones and Governance Updates
A notable operational highlight was the first major deployment of the BrakeSafe SIBS LandCruiser system across multiple underground mine operations in Western Australia’s Goldfields, marking a key step in advancing vehicle safety standards in mining. Governance-wise, Non-Executive Director Adam Levine resigned after 12 years of service, with the board acknowledging his contributions and approving a $60,000 long service payment. Additionally, ABT repaid a $607,000 loan used to fund BrakeiQ inventory and extended interest-bearing loans to key management personnel to facilitate share option exercises.
Financial Position and Outlook
ABT’s cash position strengthened to $2.9 million by quarter-end, supported by positive operating cash flows and prudent financial management. CEO Andrew Booth expressed confidence in the company’s strategic roadmap and the team’s execution, emphasizing the momentum gained in FY25 as a foundation for sustainable growth and innovation in FY26.
Bottom Line?
ABT’s strong FY25 results and innovation progress set the stage for a pivotal year ahead as it navigates evolving tax dynamics and scales international opportunities.
Questions in the middle?
- How will the absence of R&D tax incentives in FY26 impact ABT’s reported profitability?
- What commercial opportunities will arise from the BrakeSafe SIBS deployment in mining?
- How will the board manage governance and strategic continuity following Adam Levine’s departure?
