Smartgroup (SIQ) H2 2024 earnings summary

Executive summary

• Revenue grew 22% year-over-year to $305.8 million in 2024, with EBITDA up 18% to $118.7 million and NPATA up 15% to $72.4 million, driven by higher novated leasing volumes and improved vehicle supply.

• 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; total fully franked dividends for 2024 were $0.485 per share, representing 90% of NPATA, including a special dividend.

• Strategic priorities advanced, including digital transformation, brand consolidation, and improved customer experience.

• Strong progress on digital platforms and customer home launches, supporting digital revenue and improved NPS.

Financial highlights

• Revenue reached a record $305.8 million, up 22% from 2023; net revenue rose 21% to $291.9 million.

• EBITDA of $118.7 million, up 18% year-over-year; EBITDA margin at 39% for the year and 40% in H2.

• NPATA grew 15% to $72.4 million; statutory NPAT was $75.6 million, reflecting gains from divestments.

• High cash conversion with net cash from operating activities up 20% to $78.1 million.

• Staff expenses increased 20% due to resourcing for demand and wage inflation.

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 driving operating leverage, cost management, and efficiency programs to support scalable growth.

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

• January 2025 orders and settlements slightly up on prior year.