Smartgroup Corporation Ltd reported a 13% increase in revenue to AUD 179.5 million for the first half of 2026, driven by growth in novated leasing and a 15% rise in vehicles under management to 36,200.
Net revenue rose 14% to AUD 174.4 million, while EBITDA climbed 16% to AUD 73.8 million, lifting the EBITDA margin to 41% from 40% a year earlier. Net profit after tax before amortization increased 11% to AUD 42.4 million, with a 120% cash conversion rate. The interim dividend was set at AUD 0.215 per share, fully franked, representing 70% of NPATA.
The company’s return on equity stood at 31% over the last 12 months, while net debt totaled AUD 35.4 million, with leverage at 0.2 times. Technology capital expenditure reached AUD 6.9 million during the half, with full-year 2026 capex guided between AUD 13 million and AUD 15 million.
Smartgroup also announced an on-market share buyback of up to AUD 20 million following the closure of a fleet sale agreement in July. The buyback follows the company’s strategic roadmap unveiled in February 2024, which targets a mid-40s EBITDA margin by 2027 and full cloud infrastructure adoption by 2028.
Operational metrics showed active salary packages exceeding 500,000 for the first time, with battery electric vehicle orders surging 162% to account for 68% of new novated leasing orders. Customers per operational full-time employee rose to 1,837, up from 1,389 in 2023.
Despite the strong financial performance, Smartgroup’s shares slipped 1.68% to AUD 12.86 following the results, down from a pre-announcement price of AUD 13.08. The stock has traded between AUD 7.22 and AUD 13.65 over the past 52 weeks.
Management highlighted the company’s digital platform as a key growth driver, with CEO Scott Wharton noting new partnerships expanding sales channels. CFO Jason King described the fleet sale as a milestone in reducing capital intensity while maintaining fleet services through external funding partnerships.
