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Investing.com - AB Dynamics plc (LSE:ABDP), a supplier of advanced testing and simulation products for the transport market, announced that its full-year adjusted operating profit for fiscal 2025 is expected to exceed market expectations despite macroeconomic challenges affecting revenue growth in the second half of the year.
The company expects full-year revenue to exceed £114 million, below analyst consensus of £122 million, as short-term uncertainty from macroeconomic and geopolitical challenges, including US-led trade tariffs, delayed some customer orders.
Despite revenue headwinds, AB Dynamics anticipates its operating margin to exceed 20% for FY25, representing an increase of at least 180 basis points over the prior year.
"The operational improvements implemented in recent years have contributed to building a strong platform to support further growth," the company stated, though it cautioned that the favorable revenue mix that boosted margins is not expected to repeat in FY26.
The Testing Products division performed strongly, driven by customer demand for driving robots in North America and Asia Pacific, while Testing Services saw continued growth from US-based operations.
However, the Simulation division is expected to report lower revenue than the previous year due to delayed order placement.
AB Dynamics maintained strong cash generation, with net cash reaching £41.4 million as of August 31, 2025, up from £28.6 million a year earlier, driven by effective working capital management.
The company carries forward £32 million in orders into FY26, providing momentum for the first half of the new fiscal year.
"As a global market leading supplier of critical technology products and services, with a broad international footprint, the Group has an inherently resilient profile leaving it well placed to manage effectively through any short-term market headwinds," said Dr. James Routh, Chief Executive Officer, who has announced his departure to take the CEO position at Victrex plc.
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