GUD Earnings: Trailering Turns Around While Wear and Tear Is Resilient

No-moat GUD’s first-half fiscal 2024 result showed a resilient automotive wear and tear business, while sales tied to new car sales improved strongly as new vehicle supply returned. Underlying EBIT before amortization rose 12% on the prior corresponding period, or PCP, to AUD 98 million. This lines up neatly with our unchanged fiscal 2024 forecast of AUD 195 million for the continuing businesses. However, we lower our statutory forecast by about 2% on losses from the now-divested Davey business where we expected a small profit. With the divestment of Davey, a largely unrelated water pumps business, GUD is now an automotive pure play.