Smartgroup (SIQ) H1 2025 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $159.1 million, driven by higher novated leasing volumes and new client wins.

• EBITDA increased 13% to $63.6 million, with margin improving to 40%.

• NPATA rose 12% to $38.1 million, and return on equity reached 30.7%.

• Active salary packages increased 20% year-over-year to 484,000; novated leases under management grew 24% to 80,000; fleet vehicles managed up 6% to 32,400.

• Interim fully franked dividend of 19.5 cents per share declared, representing 69% of NPATA.

Financial highlights

• Revenue up 7% year-over-year to $159.1 million; net revenue up 8% to $153.1 million.

• EBITDA margin improved by 2 percentage points to 40%.

• NPATA per share: 28.1 cents, up 10% year-over-year.

• Cash conversion was strong at 138% of NPATA, aided by favorable working capital and tax timing.

• Return on equity at 30.7%, up 1.9 percentage points year-over-year.

Outlook and guidance

• Continued focus on strategic priorities and technology investment to drive growth.

• 2026 expected to be a significant year for technology investment and change delivery.

• Targeting EBITDA margin in the mid-40% range during 2027, with acceleration expected post-2026.

• Software/technology capex for 2025 expected at $11–$13 million.

• Market conditions and customer sentiment being closely monitored; recent partnerships expected to unlock new growth channels.