Smartgroup (SIQ) H2 2025 earnings summary

Executive summary

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

• EBITDA rose 14% to AUD 135.3 million, with margin improving to 41%, up 2 percentage points year-over-year.

• 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/NPATA.

• Record customer numbers across salary packaging, novated leasing, and fleet management, with active customers up 10% to 491,000 and novated leases under management up 15% to 85,300.

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%.

• Product costs reduced 19% year-over-year; total expenses up 5% to AUD 182.7 million.

• Cash conversion strong at 122% of NPAT A/NPATA, with operating cash flow at AUD 97.8 million.

Outlook and guidance

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

• Targeting EBITDA margin in the mid-40s% by 2027, supported by digital transformation, automation, and ongoing technology investment.

• Software/technology CapEx for 2026 set at AUD 11–13 million.

• Capital-light model and strong cash generation position the group for sustained profitable growth.