COG Financial Services reported a 9% year-over-year increase in revenue for fiscal 2026, alongside a 28% rise in EBITDA to shareholders, driven by robust performance in salary packaging and broking segments.
Total revenue reached AUD 8.5 billion in asset finance flow, up 8% overall and 5% organically. Earnings per share before amortization climbed 27% to 15.63 cents, while the final dividend was set at 3.5 cents per share, fully franked, bringing the full-year payout to 7 cents per share at a 45.5% payout ratio. Shares rose 7.19% to AUD 1.565, extending gains from the prior session.
The salary packaging unit, comprising Paywise and Easifleet, delivered a 51% revenue increase and an 88% EBITDA rise. Organic growth contributed AUD 15 million, with acquisitions adding AUD 14.6 million. Customer growth accelerated, with salary packaging clients up 31% and novated leasing customers nearly doubling. Novated leasing now accounts for 60% of EBITDA in the segment, up from 41% in FY25, supported by a surge in Western Australia government agency market share to around 70% in some agencies.
Broking and aggregation revenue grew 3%, though EBITDA to shareholders remained flat. Broker margins saw only minor compression, with financial intermediaries contributing 43% of segment EBITDA. The lending and managed investments segment faced headwinds due to increased credit loss provisions, while Westlawn Managed Investments grew to AUD 125 million, up from AUD 61 million.
Management highlighted an addressable market for novated leasing that is expected to double as vehicle prices decline with greater Chinese electric vehicle penetration. As of December 2025, Australia had 22.5 million registered motor vehicles, including 257,000 electric vehicles.
COG targets better than 10% organic EBITDA growth in FY27, excluding acquisitions. The company maintains a target debt-to-EBITDA ratio of 1-to-1, with acquisition firepower of approximately AUD 50 million, including AUD 40 million in additional borrowing capacity based on an EBITDA of roughly AUD 70 million. Non-core asset sales in May 2025 generated AUD 3 million, which was reinvested.
Group CEO Andrew Bennett noted the results reflected "significant investment in technology and people," adding that proprietary software systems "stand us apart from our competitors." He argued the business was "massively undervalued" at a 10 times EBITDA multiple, which would imply a valuation near AUD 320 million.
