McMillan Shakespeare (MMS) H2 2025 earnings summary

Executive summary

• Normalized revenue rose 3% year-over-year to $541.6 million, with growth across all segments and normalized NPATA of $103.2 million.

• Statutory NPAT increased to $95.8 million, up 6.4% year-over-year, with a 100% dividend payout ratio and 8.3% yield.

• Strategic investments in digital, AI, and automation drove productivity and customer experience improvements.

• Completion of the Simply Stronger program and launch of new digital platforms enhanced productivity and customer experience.

• Receivables increased to $503 million, with Onboard Finance normalization concluded in FY25.

Financial highlights

• Revenue up 3% year-over-year to $541.6 million; group EBITDA margin at 31.2%.

• Normalized NPATA was $103.2 million; normalized EPS at 148.2 cents.

• Statutory NPAT from continuing operations increased 6.4% to $95.8 million.

• Onboard Finance receivables grew 54.6% to $503 million; $300 million private placement completed.

• Cost-to-income ratio at 58.7%, with further improvement expected in FY2026.

Outlook and guidance

• Business momentum expected to continue into FY2026, with stable auto supply and used car values.

• FBT exemption on battery electric vehicles remains until at least mid-2027; plug-in hybrid exemption expired.

• NDIS plan management fees to remain flat, but setup fees removed from July 2025, impacting 7.9% of PSS revenue.

• Strategic investments and removal of non-recurring costs to support further growth and productivity.

• Onboard Finance normalization concluded, expected to be neutral to NPATA in FY2026 and positive thereafter.