COG Financial Services (COG) H2 2025 earnings summary

Executive summary

• Revenue increased 1% year-over-year to $363.5m, with underlying EBITDA up 4% to $38.4m attributable to shareholders.

• NPATA to shareholders was $24.0m, down 1% year-over-year, but up 4% on an adjusted basis excluding the run-off of TL Commercial.

• Novated Leasing segment delivered strong organic growth, with EBITDA up 26% year-over-year, supported by government incentives for electric vehicles.

• Divestment of non-core investments in Earlypay and Centrepoint Alliance completed, focusing on core segments.

• Continued execution of acquisition strategy, with $15.1m in acquisitions since July 2024, including additional stakes in QPF, Community Salary Packaging, and AAA Finance.

Financial highlights

• Underlying revenue (excluding interest income) was $363.5m, up 1% year-over-year.

• EBITDA to shareholders rose 4% to $38.4m; EPSA was 12.00cps, down 4% year-over-year.

• Final dividend declared at 3.0cps, fully franked, with a payout ratio of 50.6% of NPATA.

• Net assets financed reached $8.4bn, up 8% year-over-year.

• Cash and cash equivalents increased by $23.6m, mainly from asset sales and higher client funds.

Outlook and guidance

• Expectation of continued organic growth in Novated Leasing, supported by government incentives for electric vehicles.

• Ongoing focus on strategic acquisitions and investment in operational improvements, especially in broker aggregation and cyber security.

• Future performance analysis to focus on EBITDA rather than NPATA.

• Insurance Broking identified as a future growth area.

• Dividend payout expected to remain at a similar ratio.