Australia-based fleet and salary packaging provider Smartgroup Corporation Ltd reported a 13% increase in revenue to AUD 179.5 million for the six months ended June 30, 2026, while net revenue rose 14% to AUD 174.4 million.
Profitability improved, with EBITDA up 16% to AUD 73.8 million and EBITDA margin expanding to 41%, an improvement of one percentage point year-over-year. Net profit after tax before amortization rose 11% to AUD 42.4 million, while return on equity over the last 12 months reached 31%. Cash conversion stood at 120% of net profit after tax.
The company declared an interim dividend of AUD 0.215 per share, fully franked, representing 70% of net profit after tax. The dividend yield was 4.09%, with a P/E ratio of 20.89 and a PEG ratio of 4.18. Net debt totaled AUD 35.4 million, equating to a leverage ratio of 0.2 times.
Technology investment remained a priority, with AUD 6.9 million spent on capital expenditure in the period. Full-year 2026 capex guidance was set between AUD 13 million and AUD 15 million. Smartgroup also announced an on-market share buyback of up to AUD 20 million following the completion of a fleet sale transaction.
Operational metrics showed continued expansion. Active salary packages exceeded 500,000 for the first time, while novated leases under management rose 15% and settlement volumes increased 17%. Battery electric vehicles accounted for 68% of new novated leasing orders, a 162% increase in new BEV orders. Total fleet-managed vehicles grew 12% to 36,200. Customers per full-time employee rose to 1,837, up from 1,389 in 2023.
Digital transformation progress included 85% of compute infrastructure operating in the cloud, up from 45% at the end of 2025, with a target of 100% by 2028. The company reduced its brand footprint from eight to four locations and consolidated its contact center network from seven to four sites.
Despite the financial and operational improvements, Smartgroup’s shares slipped 1.68% to AUD 12.86 following the results, having previously traded as high as AUD 13.65 over the past 52 weeks. Total expenses increased 12% to AUD 100.6 million.
Chief Executive Officer Scott Wharton highlighted the revenue growth as a reflection of the company’s customer proposition and strength in novated leasing, while noting that partnerships were expanding sales channels and customer reach. Chief Financial Officer Jason King described the fleet strategy milestone as reducing capital intensity through the sale of a self-funded fleet portfolio to Volkswagen Financial Services, while maintaining the fleet offering via external funding partnerships.
