How Will CAR Group Navigate Growth Amid CEO Transition?
CAR Group Limited has reported strong FY25 financial results with double-digit revenue and earnings growth across all key markets, while preparing for a leadership change. The company’s optimistic FY26 outlook underscores confidence in sustained expansion driven by innovation and market leadership.
- Proforma revenue up 12% to $1.144 billion
- Proforma EBITDA grows 12% maintaining 56% margin
- Strong market performance in Australia, Latin America, North America, and Asia
- Declared 40% franked final dividend, up 8%
- CEO Cameron McIntyre announces upcoming transition
Strong Financial Performance Across Regions
CAR Group Limited (ASX, CAR) has delivered an impressive set of results for the fiscal year ended June 30, 2025, underscoring the resilience and scalability of its global digital marketplace business. The company reported proforma revenue of $1.144 billion, marking a 12% increase over the prior year, alongside a 12% rise in proforma EBITDA to $641 million, maintaining a robust margin of 56%. These figures reflect solid growth across all major markets, including Australia, Latin America, North America, and Asia.
Market Leadership and Innovation Drive Growth
In Australia, carsales retained its market leadership, contributing to an 8% revenue increase and 9% growth in adjusted EBITDA. Latin America saw outstanding performance driven by webmotors’ expanded market share and new product momentum, with revenue up 26% and EBITDA up 28% on a constant currency basis. North America’s Trader Interactive showed resilience in a challenging macroeconomic environment, achieving 10% revenue growth and 11% EBITDA growth. Meanwhile, Asia’s Encar benefited from rapid adoption of its Guarantee inspection product and AI-driven efficiencies, delivering 16% revenue growth.
Dividend and Cash Flow Strength
CAR Group’s operational strength translated into a 98% conversion of EBITDA to operating cash flow, a sign of healthy cash generation. The company declared a 40% franked final dividend of 41.5 cents per share, an 8% increase from the previous year, signaling confidence in ongoing profitability and shareholder returns.
Looking Ahead, FY26 Guidance and Leadership Transition
Looking forward, CAR Group projects continued momentum with proforma revenue growth of 12-14% and EBITDA growth of 10-13% on a constant currency basis. Growth drivers include volume and yield improvements in Australia, expansion of premium products in Latin America, and increased penetration of innovative offerings in Asia. Notably, CEO Cameron McIntyre announced his forthcoming transition out of the business, expressing pride in the company’s achievements and confidence in its future trajectory. This leadership change introduces a new chapter for CAR Group as it seeks to sustain its growth and innovation momentum.
Strategic Positioning in a Competitive Landscape
CAR Group’s diversified portfolio and disciplined capital management have positioned it well to navigate ongoing macroeconomic uncertainties, including inflationary pressures and currency fluctuations. The company’s focus on technology-driven solutions, such as AI-enhanced products and seamless payment platforms, continues to differentiate it in the competitive digital marketplace sector. Investors will be watching closely how the group balances investment in innovation with maintaining strong margins and cash flow.
Bottom Line?
With strong FY25 results and a clear growth roadmap, CAR Group’s next phase hinges on smooth leadership transition and execution of its innovation pipeline.
Questions in the middle?
- Who will succeed Cameron McIntyre as CEO and what strategic shifts might follow?
- How will CAR Group manage macroeconomic risks impacting its diverse markets?
- What new products or acquisitions are planned to sustain the growth trajectory?
