Smartgroup (SIQ) H2 2025 earnings summary

Executive summary

• Revenue increased 8% year-over-year to AUD 329.3 million, driven by higher novated leasing volumes and new client wins.

• EBITDA rose 14% to AUD 135.3 million, with margin improving to 41%.

• NPAT A/NPATA grew 11% to AUD 80.2 million; return on equity reached 30%.

• Fully franked dividends totaled AUD 0.53 per share, representing 90% of NPAT A and up 9% year-over-year.

• Active customers reached 491,000 (+10%), novated leases under management rose 15% to 85,300, and fleet-managed vehicles grew 9% to 35,200.

Financial highlights

• Revenue up 8% to AUD 329.3 million; net revenue up 9% to AUD 318 million year-over-year.

• EBITDA increased 14% to AUD 135.3 million; EBITDA margin up 2 percentage points to 41%.

• NPAT A/NPATA up 11% to AUD 80.2 million; return on equity improved to 30%.

• Cash conversion strong at 122% of NPAT A/NPATA, aided by favorable working capital and tax timing.

• Net corporate debt/EBITDA reduced to 0.3x.

Outlook and guidance

• Expecting robust demand and further growth in 2026, with January leasing orders and settlements up year-over-year.

• 2026 will be a significant year for technology investment and change delivery, with software capex for 2026 expected at AUD 11–13 million.

• Targeting EBITDA margin in the mid-40s% by 2027, with further improvements anticipated beyond 2027 through automation and AI.