Smartgroup Corporation reported a 13% year-over-year increase in revenue to $179.5 million for the first half of 2026, as accelerating demand for battery-electric vehicles (BEVs) reshaped its fleet leasing business. The company’s net revenue rose 14% to $174.4 million, while EBITDA grew 16% to $73.8 million, expanding the EBITDA margin by one percentage point to 41%.
Net profit after tax adjusted (NPATA) increased 11% to $42.4 million, supported by a 12% rise in operating expenses to $100.6 million. Staff expenses climbed 10% to $70.9 million, while other expenses rose 18% to $29.7 million. Amortization expense more than doubled to $6.3 million. The company maintained a conservative leverage ratio of 0.2 times net debt to EBITDA and achieved a cash conversion rate of 120% of NPATA.
Revenue growth was underpinned by a 162% year-over-year surge in BEV orders, which now represent 68% of new vehicle orders, up from approximately 26% in the prior-year period. Internal combustion engine (ICE) vehicle orders declined 29%, while plug-in hybrid electric vehicle (PHEV) orders fell 39% following the April 1, 2025 cessation of the Electric Car Discount policy for PHEVs.
Smartgroup’s active salary packages exceeded 500,000 for the first time, adding 34,000 customers in the six-month period. Novated leases under management reached 91,600, up 15% from the prior year, while fleet-managed vehicles grew 12% to 36,200. The company’s operational efficiency improved, with customers per full-time employee rising 19% to 1,837.
Management highlighted partnerships with Volkswagen Financial Services as a catalyst for scalable fleet growth, with external funding supporting expansion. The company also noted that the continuation of the Electric Car Discount for BEVs supports novated leasing demand and climate transition. Technology capital expenditure for the full year 2026 is guided at $13–15 million.
Smartgroup’s managing director and CEO Scott Wharton said the company was attracting new partnerships that open sales channels and extend reach to new customer segments. Management added that sustained investment beyond 2027 could further elevate business performance.
The company declared a fully franked interim dividend of 21.5 cents per share, representing 70% of NPATA and a 10% increase year-over-year. Smartgroup’s share price slipped 1.68% to $12.97 following the announcement, with a 52-week range of $7.22 to $13.65.
