CAR Group (CAR) H1 2025 earnings summary

Executive summary

• Delivered strong H1 FY25 results with double-digit revenue and EBITDA growth across all key markets, reflecting a diversified global business model and successful strategy.

• Pro forma revenue reached $548m, up 12% year-over-year in constant currency; reported revenue was $579m, up 9% year-over-year.

• Pro forma EBITDA was $302m, up 12% in constant currency; reported EBITDA was $292m, up 9%.

• Adjusted NPAT was $177m, up 12% in constant currency and 9% in AUD; reported NPAT was $123m, up 5%.

• Strategic focus on technology, AI, and product innovation, including C2C payments and premium product expansion.

Financial highlights

• Pro forma revenue, EBITDA, and adjusted NPAT each grew 12% year-over-year in constant currency; EBITDA margin held at 55%.

• Interim dividend of 38.5 cents per share declared, up 12% and 50% franked.

• Net debt to EBITDA at 1.8x; EBITDA to cash conversion at 95%.

• Capex at 10% of pro forma revenue; strong free cash flow and disciplined capital allocation.

• Significant items impacting reported NPAT include restructuring, M&A costs, and acquired intangible amortisation.

Outlook and guidance

• Continued growth in pro forma revenue, EBITDA, and adjusted NPAT expected for FY25 on a constant currency basis.

• Pro forma EBITDA margin anticipated to remain stable, with some reinvestment into the business.

• Australia: Good growth expected in dealer, private, and media revenue.

• North America: Solid revenue and EBITDA growth expected, with price increases deferred to peak season or H2 FY25.

• Latin America and Asia: Strong revenue and EBITDA growth forecast, led by webmotors and premium product adoption.