AB Dynamics PLC (ABDP:AIM) reported a robust FY2025 performance, marking another year of solid financial and strategic progress. Operating profit and EPS both rose 15%, slightly ahead of upgraded expectations, supported by a 3% increase in revenue and a 210-basis-point expansion in operating margin to 20.3%. The group’s strong cash generation, with cash conversion of 106%, lifted year-end net cash to £41.4 million, even after £8.1 million of investment in acquisitions and capital projects. The recently acquired Bolab was successfully integrated, contributing positively to the testing products segment. Key operational improvements and an enhanced revenue mix underpinned margin gains, though management cautioned the mix benefit is unlikely to recur in FY2026. The order book stood at £32 million, providing strong trading momentum into FY2026. The company reiterated its medium-term growth plan to double revenue and triple operating profit, targeting sustained organic revenue growth of 10% annually, a margin above 20%, and continued 100% cash conversion. AB Dynamics continues to benefit from long-term regulatory and structural drivers in vehicle testing, safety, and simulation markets, underpinned by increasing complexity in autonomous and ADAS development. Its OEM- and powertrain-agnostic model, diversified customer base, and global reach provide resilience against macroeconomic disruption. The board remains confident in delivering FY2026 adjusted operating profit in line with expectations, maintaining a progressive dividend policy with a proposed 20% increase, and leveraging its strong balance sheet for both organic and inorganic growth opportunities.