Advanced Braking Technology delivers record first half with 27% revenue surge
Advanced Braking Technology (ASX: ABV) has reported record Advanced Braking Technology Half Year Results for H1 FY26, with revenue reaching $11.1 million, representing 27% growth on the prior corresponding period. The result continues a four-year compound annual growth rate of 19%, underpinned by strong demand for SIBS Failsafe safety systems and an expanding international footprint. The performance validates ABT’s growth strategy as it gains traction across blue-chip mining customers and diversifies its technology applications.
New brake sales increased 25.8%, while spares and consumables rose 28.4%, demonstrating the company is converting its installed base into recurring revenue whilst simultaneously winning new customers. This dual growth engine positions ABT to extract value from existing relationships while expanding market penetration across 22 countries.
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Profitability and cash generation strengthen balance sheet
ABT delivered a step-change in profitability during H1 FY26. Net profit before tax (NPBT) surged 124% to $0.75 million, whilst net profit after tax (NPAT) climbed 62% to $0.54 million. Earnings per share rose 55% to 0.135 cents, reflecting disciplined cost management alongside revenue growth. Gross profit margin held steady at 48.7%, broadly in line with the prior period (48.1%), demonstrating operational efficiency and pricing discipline.
The company’s cash position strengthened to $4.1 million, up 44% on the prior corresponding period. The balance includes $0.6 million in Research & Development tax incentives. Operating cash flow swung from an outflow of $0.46 million in H1 FY25 to an inflow of $1.55 million in H1 FY26, signalling ABT is now self-funding its growth and reducing reliance on external capital. Net assets increased to $11.4 million, providing a strong equity base for downside protection and funding flexibility.
| Metric | H1 FY26 ($’000) | H1 FY25 ($’000) | Change (%) |
|---|---|---|---|
| Revenue | 11,058 | 8,695 | 27.2% |
| NPBT | 747 | 333 | 124% |
| NPAT | 538 | 333 | 61.6% |
| EPS (cents) | 0.135 | 0.087 | 55.2% |
| Cash | 4,143 | 2,875 | 44.1% |
| Gross Margin | 48.7% | 48.1% | – |
The swing from operating cash outflow to inflow signals ABT is now self-funding its growth, reducing reliance on external capital.
Understanding collision avoidance and why Level 9 matters
Collision Avoidance System Level 9 (CAS9) represents the highest safety tier defined by the Earth Moving Equipment Safety Round Table (EMESRT). Lower-level collision avoidance systems warn operators of potential hazards, but CAS9 systems actively intervene to prevent collisions. This distinction is critical in mining environments, where 30-40% of fatalities involve vehicle interaction.
ABT’s BRAKEiQ system bridges CAS9 signals to actual vehicle braking. Rather than modifying hydraulic systems (which can void warranties), BRAKEiQ uses an electric motor to depress the brake pedal, simulating a human foot. The system is designed for seamless integration with Collision Avoidance Systems and is compatible with more than 30 Caterpillar wheel loaders and dozers, plus Komatsu equipment.
South Africa is leading global adoption of mandated Level 9 collision avoidance requiring automatic vehicle intervention. BRAKEiQ is progressing toward Level 9 collision-avoidance accreditation with the University of Pretoria, with completion expected in H2 FY26.
CAS9 mandates are not hypothetical. South Africa is already implementing them, and the global mining industry is observing. ABT’s BRAKEiQ positions the company at the intersection of safety regulation and autonomous mining trends.
International expansion and blue-chip customer wins fuel growth
Geographic diversification continued during H1 FY26, with domestic sales up 30.5% and international sales up 29.3%. International growth was driven by Canada, Mongolia and Europe. ABT now sells directly to 10 of the top 20 global mining companies by market capitalisation.
Specific customer wins during the period included:
- Successful deployment of SIBS Failsafe for JCB Telehandlers at Rio Tinto’s Oyu Tolgoi copper operation in Mongolia.
- Secured mandate to supply Failsafe brakes to MMG’s Dugald River mine in Queensland, a top-10 global zinc operation.
Recurring aftermarket sales represented 45% of total revenue, whilst new sales accounted for 55%. Approximately 70% of revenue is protected by patented or proprietary technology, providing competitive insulation. Strong gold and copper prices continued to support mining investment and operational demand across ABT’s customer base.
Diversified geographic exposure reduces single-market risk, whilst blue-chip customer relationships provide revenue visibility and credibility.
Technology development and FY26 priorities
ABT is advancing BRAKEiQ’s progress toward Level 9 collision-avoidance accreditation with the University of Pretoria, expected in H2 FY26. The company is also progressing SIBSiQ (CAS9 feasibility) technology development. Management has outlined four strategic priorities for FY26:
- Focused engagement with partners and the existing customer base.
- Product innovation with technology advancement.
- SIBS product development to support broader vehicle applications.
- Supply chain expansion to support step-change growth.
The expected BRAKEiQ accreditation in H2 FY26 represents a potential near-term catalyst that could unlock new revenue streams as CAS9 mandates expand globally.
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Outlook and growth strategy
The global underground mining market is projected to grow at a CAGR of 4-6% through 2030, with market size expected to exceed $47 billion by 2032. Asia-Pacific is anticipated to remain the dominant region, led by China, Australia and India, whilst North America is expected to experience strong growth. The long-term industry shift toward automation and ‘zero-entry’ mines aligns with ABT’s technology roadmap.
ABT’s three-horizon growth strategy is designed to deliver scalable earnings growth:
- Horizon 1: Drive mining market penetration and diversify SIBS applications across a broader range of vehicle types.
- Horizon 2: Develop interoperable brakes with collision avoidance and autonomous technology, supported by strategic partnerships.
- Horizon 3: Pursue industry diversification into defence, transport and infrastructure.
ABT’s capital-light, people-light model provides operating leverage as revenues scale, meaning incremental revenue could flow through to profit at an accelerating rate.
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