Smartgroup (SIQ) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $305.8 million in 2024, up 22% year-over-year, with EBITDA of $118.7 million (+18%) and NPATA of $72.4 million (+15%).

• Active customers increased 12% to 445,000, with novated leases under management up 22% to 74,300.

• Operating cash flow conversion was 108% of NPATA, supporting continued investment and strong dividends.

• Fully franked dividends for 2024 totaled $0.48 per share, representing 90% of NPATA, including a special dividend.

• Advanced digital transformation, brand consolidation, and customer experience initiatives.

Financial highlights

• Revenue reached $305.8 million, up 22% from 2023; EBITDA was $118.7 million (+18%); NPATA was $72.4 million (+15%).

• Statutory NPAT was $75.6 million, reflecting gains from divestments.

• EBITDA margin at 39% for the year, 40% in the second half.

• Net debt at $45.4 million, with leverage at 0.4x.

• Final fully franked dividend of $0.20 per share and special dividend of $0.11 per share declared.

Outlook and guidance

• Cautiously optimistic for 2025, monitoring macroeconomic conditions, consumer sentiment, and regulatory changes.

• Technology CapEx for 2025 guided at $11–$13 million, similar to 2024.

• Focus on digital transformation, cost management, and operating leverage to support scalable growth.

• Expecting revenue per customer to improve through digital and additional services in the medium term.

• Targeting further expansion in government and under-serviced markets.