Smartgroup Corporation reported an 11% increase in net profit after tax to $42.4 million for the first half of 2026, alongside a 13% rise in revenue to $179.5 million. The company’s earnings before interest, tax, depreciation and amortization grew 16% to $73.8 million, with the EBITDA margin expanding by one percentage point to 41%.
The results were underpinned by a 162% year-over-year surge in battery-electric vehicle orders, which accounted for 68% of new vehicle orders in the period, up from 26% in the first half of 2025. Internal combustion engine vehicle orders declined 29% over the same period, while plug-in hybrid orders fell 39% following the April 1, 2025 cessation of the Electric Car Discount policy for PHEVs.
Active salary packages exceeded 500,000 for the first time, rising 7% year-over-year, while novated leases under management grew 15% to 91,600 units. Fleet-managed vehicles increased 12% to 36,200. Operating expenses rose 12% to $100.6 million, with staff expenses up 10% to $70.9 million and other expenses increasing 18% to $29.7 million. Amortization expense more than doubled to $6.3 million.
Management highlighted progress in its strategic transformation, including a reduction in brands from nine in 2023 to four, with a target to operate under a single "Smart" brand by 2028. Cloud infrastructure migration reached 85% of compute capacity, up from 45% in 2025, with a goal of 100% by 2028. The company also announced an on-market share buyback program of up to $20 million in May 2026, following a 1.68% decline in shares to $12.97 post-announcement.
Scott Wharton, managing director and CEO, noted the company’s position in the electric vehicle market was attracting new partnerships and extending reach to new customer segments. Management indicated potential for further performance improvement beyond 2027 with sustained investment, targeting a mid-40s EBITDA margin in 2027, representing roughly 400 basis points of expansion from current levels.
