Transport technology company EROAD says recently introduced US tariffs are unlikely to have any material impact on its earnings, despite the company deriving nearly half of its revenue from the American market.
The US government’s 10% global import tariff came into effect on April 5, following the expiry of a 90-day waiver period.
“EROAD does not anticipate that the tariffs, including the broader programme if it is implemented following the waiver period, will have any material impact on EROAD’s revenue or earnings,” the dual-listed company said in a market update.
EROAD generates 44% of its revenue from the United States, with around 88% of that total coming from services not subject to import tariffs.
The company produces the bulk of its hardware — which enables its software-as-a-service (SaaS) offering — through contract manufacturers in Indonesia, the Philippines, and Vietnam.
Management is now evaluating a range of options to further limit exposure to tariff-related costs, including shifting production to other locations, refurbishing existing US-based devices, reviewing cross-border logistics, and increasing prices in line with market trends.
“Current hardware stock located in the US will mitigate some of the near-term impact of US tariffs,” the company says.
“Longer-term, we continue to evolve the ability to deliver EROAD’s solutions independent of EROAD supplied hardware, reducing upfront cost and accelerating rollout across customer fleets. We will also continue to monitor the opportunity for EROAD arising from the onshoring of US supply chains and increased transport activity.”
EROAD confirmed that its 2025 financial year ended on March 31 — prior to the implementation of the new tariffs — and therefore the FY25 results will not be affected. The company will release its annual results and FY26 outlook to the NZX and ASX on May 26.
