Key Takeaways
- A major "Car Group" reported Fiscal Year 2025 (FY25) adjusted net income of A$377.0 million, slightly below estimates, alongside a final dividend of A$0.415 per share.
- The unnamed automotive company projects robust growth for FY26, with adjusted net income expected to increase by 9-13% and proforma revenue by 12-14% at constant foreign exchange rates.
- U.S. Treasury Secretary Scott Bessent indicated that tariffs between the U.S. and China "should melt" if trade rebalances, emphasizing that current high tariff levels are unsustainable and akin to an embargo.
- Bessent stressed that any tariff reductions would need to be mutual, with the ultimate goal of bringing manufacturing jobs back to the United States.
A prominent "Car Group" has released its Fiscal Year 2025 (FY25) earnings, reporting an adjusted net income of A$377.0 million, which came in just under the estimated A$377.8 million. The company's net income for FY25 was A$275.5 million, also below the A$294.7 million estimate. Shareholders are set to receive a final dividend of A$0.415 per share.
Looking ahead, the automotive group provided an optimistic outlook for Fiscal Year 2026 (FY26). It anticipates adjusted net income growth of 9-13% and proforma EBITDA growth of 10-13%, both at constant foreign exchange rates. Furthermore, the company projects proforma revenue growth of 12-14% for FY26, signaling confidence in its future performance despite the slight misses in FY25.
In a separate but equally impactful development, U.S. Treasury Secretary Scott Bessent recently commented on the state of global trade, particularly between the United States and China. Bessent stated that tariffs "should melt" if trade relationships rebalance, indicating that the current high tariff levels are unsustainable for both nations. He described the existing tariffs, such as the 145% U.S. tariffs on Chinese goods and China's 125% tariffs on U.S. goods, as "the equivalent of an embargo."
Bessent clarified that while the Trump administration's ultimate goal with tariffs is to bring manufacturing jobs back to the U.S., any reduction in these trade barriers would need to be a mutual agreement, not a unilateral move by the U.S. He noted that over 100 countries have approached the U.S. in response to President Trump's tariff announcements, seeking to rebalance global trade. The Treasury Secretary emphasized the necessity for China to shift its economic model towards domestic consumption, while the U.S. aims to bolster its manufacturing sector to achieve a more balanced global economy.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.