CAR Group (CAR) H1 2025 earnings summary

Executive summary

• Delivered double-digit growth in revenue, EBITDA, and adjusted NPAT for H1 FY25, with pro forma revenue of $548m and EBITDA of $302m, both up 12% in constant currency, and strong performance across all key markets and segments.

• Reported NPAT was $123m, up 5% year-over-year; adjusted EPS rose to 47.0 cents, up 9%.

• Strategic focus on removing friction in vehicle transactions, investing in technology and AI, and expanding in high-growth international markets.

• Strong operational metrics: 2.4m vehicles online, 49,000 subscribed dealers, 634m sessions, and 48m unique monthly audience.

• Robust financial position at 31 December 2024, with leverage at 1.8x net debt/EBITDA and EBITDA to cash conversion ratio of 95%.

Financial highlights

• Pro forma revenue, EBITDA, and adjusted NPAT each grew 12% year-over-year in constant currency; reported revenue was $579.4m (up 9%), reported EBITDA $292.5m (up 9%), and adjusted NPAT $177m (up 12% in constant currency, up 9% reported).

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

• Group EBITDA margin at 55%, with a 3% uplift from exiting the Australian tire business.

• Free cash flow generation remains strong, with net cash inflow from operating activities of $214.2m and cash and cash equivalents at $234.9m.

• CapEx as a percentage of revenue remains consistent at 10% of pro forma revenue.

Outlook and guidance

• Expects continued growth in pro forma revenue, EBITDA, and adjusted NPAT for FY25 on a constant currency basis, with pro forma EBITDA margins anticipated to remain stable.

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

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

• Latin America: Strong revenue and EBITDA growth forecast, driven by national expansion and new products.

• Asia: Good revenue and solid EBITDA growth expected, supported by premium product adoption and new inspection centers.