COG Financial Services reported a 28% year-over-year increase in EBITDA to shareholders to $51.5 million for the fiscal year ended June 30, 2026, as its salary packaging segment drove the bulk of growth.
Revenue rose 9% to $399.8 million, while adjusted earnings per share climbed 27% to 15.63 cents. The final dividend was increased 17% to 3.5 cents per share, bringing the full-year payout to 7.0 cents at a 45.5% payout ratio. Shares rose 7.53% to $1.57 following the presentation, off a 52-week high of $2.46.
The salary packaging segment now represents 60% of group EBITDA, up from 41% a year earlier, with EBITDA to shareholders surging 88% to $31.0 million. Revenue in the segment jumped 51% to $88.7 million, supported by a 98% increase in novated lease customers to 22,281 and a 31% rise in total salary packaging customers to 68,510. Lease settlements climbed 66% to 9,253, while net assets financed grew 62% to $0.5 billion. The segment’s EBITDA margin expanded to 38.7% from 37.6%.
The broking and aggregation segment, which contributed $24.5 million in EBITDA to shareholders, saw revenue rise 3% to $273.7 million. Net assets financed increased 5% to $8.5 billion, though EBITDA margins contracted slightly to 14.1% from 14.7%. The lending segment reported a 37% decline in EBITDA to $1.2 million on a 9% drop in revenue to $38.1 million, while Westlawn’s Managed Investment Scheme grew to $124.8 million from $61.0 million.
COG completed the $36.5 million cash acquisition of Easifleet, with up to $8.1 million in contingent payments due through June 2029. The company also increased its stake in Fleet Network from 74.59% to 92.38% via a $20 million equity placement, debt facilities, and cash reserves. Corporate cash and equivalents rose by $37.7 million to $187.0 million, including $73.7 million in proportionate unrestricted cash attributable to members and $22.9 million in unrestricted corporate cash.
Total assets stood at $731.3 million as of June 30, 2026, with net assets at $206.6 million. The company has approximately $40 million in debt capacity at the corporate level and total acquisition firepower of about $50 million, targeting a debt-to-EBITDA ratio of one-to-one.
Organic growth contributed $8.9 million to EBITDA, while acquisitions and increased equity stakes added $10.5 million. Offsets included $5.2 million invested in people and technology and a $3.0 million reduction from divested equity stakes in Earlypay and Centrepoint.
For fiscal 2027, COG targets organic EBITDA growth of at least 10%, excluding announced acquisitions. CEO Andrew Bennett described the results as "a beautiful set of numbers" and highlighted the company’s proprietary software systems as a competitive differentiator, while Paywise CEO Frank Agostino noted increased tender opportunities previously inaccessible.
