MMS Reports $95.3M NPAT on 3% Revenue Growth and Digital Gains

Strong Financial Performance Amid Strategic Transformation

McMillan Shakespeare Limited (ASX – MMS) has delivered a robust financial performance for the fiscal year 2025, reporting a 14.1% increase in statutory net profit after tax (NPAT) to $95.3 million. This growth accompanies a 3.0% rise in normalised revenue to $541.6 million, reflecting broad-based gains across its leasing and plan management services.

The company’s results come on the heels of completing its multi-year Simply Stronger program, a strategic initiative focused on digital innovation and operational efficiency. This program has unlocked access to new customer segments and introduced superior digital platforms such as the MyMaxxia and MyRemServ apps, enhancing customer engagement and streamlining service delivery.

Digital Innovation Driving Customer and Productivity Gains

Novated lease sales grew by 4.1% year-on-year, supported by new client acquisitions and the rollout of the Oly platform to small and medium enterprises. Meanwhile, the Plan & Support Services segment saw a remarkable 21.5% increase in customers, bolstered by the May 2025 acquisition of My Plan Support.

Operational improvements were also notable, with digitisation efforts in Asset Management Services simplifying trade-ins and driving a 19% increase in uptake. Investments in artificial intelligence and automation within Plan & Support Services enhanced fraud detection and boosted productivity, evidenced by a 56% rise in digitally processed invoices.

Balancing Growth with Margin Pressures

Despite top-line growth, the company reported a 4.1% decline in normalised underlying net profit after tax and amortisation (UNPATA) to $103.2 million, suggesting some margin pressures possibly linked to ongoing investments and integration costs. Nevertheless, McMillan Shakespeare declared a fully franked dividend of 148.0 cents per share, underscoring confidence in its cash flow and financial position.

Outlook – Momentum and Market Stability

Looking ahead to FY26, McMillan Shakespeare anticipates stable market conditions with auto supply and used car values expected to hold steady. The company also benefits from ongoing government incentives, such as the fringe benefits tax exemption on battery electric vehicles, which remains in place until a review scheduled for mid-2027.

Management highlighted continued customer growth prospects driven by new client wins and expanding novated lease orders. The company plans to maintain disciplined investment in technology and customer experience, aiming to capitalise on the momentum generated by the Simply Stronger program.