AB Dynamics plc (LSE:ABDP) reported mixed results for the first half of fiscal 2026 on Thursday, posting revenue of £49 million while maintaining its full-year EBITA outlook despite challenges in its China-based testing services operations.
The automotive testing equipment company recorded order intake of £64 million during the period. This was 3% lower than in the first half of 2025 but represented a 45% increase compared with the second half of last year.
As of December 31, 2025, the company’s order book totaled £47 million, an increase of £5 million year-over-year and providing around 70% coverage of expected revenue for fiscal 2026.
AB Dynamics said demand remained encouraging within its Testing Products division, particularly across Asia-Pacific and North America.
The Simulation division also reported solid momentum, supported by an equipment contract with a major original equipment manufacturer and continued strong software sales.
However, the Testing Services division encountered significant difficulties in China. Volumes tied to a new contract with a European OEM were roughly 50% below expectations, reducing revenue from this activity to less than £3 million. Performance from the company’s U.S. testing services business remained in line with forecasts.
Due to the challenges in China, AB Dynamics recorded an impairment charge of approximately £16 million, largely non-cash, and initiated a strategic review of the business.
The company said fiscal 2026 EBITA is still expected to align with consensus estimates of £24.4 million, implying a full-year margin above 20%. Net cash totaled £39.3 million as of February 28, 2026, up from £35.5 million at the end of December 2025.
More about AB Dynamics
AB Dynamics plc (LSE:ABDP) develops advanced testing systems and simulation technology for the automotive industry. Its products and services support vehicle safety, driver assistance systems, and autonomous driving development for automotive manufacturers and suppliers worldwide.
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