CAR Group Limited has reported a strong first half for FY26, posting 13% revenue growth and reaffirming its optimistic outlook for the full year, driven by strategic AI integration and global market expansion.
- 13% revenue growth in constant currency for H1 FY26
- 12% increase in proforma EBITDA with strong margins maintained
- 10% rise in interim dividend to 42.5 cents per share
- Significant AI deployment enhancing customer experience and operational efficiency
- Robust growth across Australia, North America, Latin America, and Asia
Strong Financial Performance
CAR Group Limited (ASX – CAR) has delivered an impressive set of results for the half year ended 31 December 2025, with revenue climbing 13% on a constant currency basis to AUD 626 million. This growth is complemented by a 12% increase in proforma EBITDA to AUD 339 million, underscoring the company’s ability to scale profitably while investing in future growth initiatives. Net profit after tax attributable to owners rose 16% to AUD 143 million, reflecting solid operational execution across its global portfolio.
The company also announced a 10% increase in its interim dividend to 42.5 cents per share, signalling confidence in sustained cash flow generation and shareholder returns. CAR Group’s leverage ratio remains prudent at 1.8 times net debt to EBITDA, supporting a robust balance sheet amid ongoing investments.
Global Market Leadership and Segment Highlights
CAR Group’s diversified footprint spans Australia, North America, Latin America, and Asia, with international markets contributing approximately 59% of group revenue. Each region reported strong growth – Australia benefited from increased lead volumes and premium product adoption; North America saw robust media revenue growth and dealer tool enhancements; Latin America’s webmotors expanded nationally with a 51% increase in Wallet loyalty program revenue; and Asia’s Guarantee inspection services and Encar Home digital offerings grew significantly.
These results reflect CAR Group’s strategic focus on deepening market leadership through product innovation and expanding dealer and consumer engagement. The company’s proprietary data assets and integrated ecosystems continue to provide a competitive edge, enabling seamless transactions and enhanced customer experiences.
AI Integration Driving Operational Excellence
A standout feature of CAR Group’s strategy is its accelerated deployment of artificial intelligence across its platforms. The newly established global AI hub in Brazil is spearheading the development of agentic AI capabilities tailored to local markets. AI-powered tools are transforming vehicle search and discovery, merchandising, and enquiry qualification, resulting in faster, more intuitive customer journeys and operational efficiencies.
For example, AI enhancements have halved the time required for vehicle inspections and quadrupled buyer engagement through intelligent lead nurturing. The company’s AI initiatives are embedded within existing investment levels, indicating a focus on sustainable innovation without incremental capital expenditure.
Outlook and Strategic Priorities
Reaffirming its FY26 guidance, CAR Group expects proforma revenue growth of 12–14% and EBITDA growth of 10–13% on a constant currency basis. Adjusted net profit after tax is forecast to rise 9–13%, supported by continued operating leverage in Australia and Latin America, and targeted investments in North America and Asia.
The company’s strategic priorities remain focused on strengthening core marketplaces, extending product offerings, diversifying into new markets, and driving operational excellence through collaboration and technology. With a clear vision to be the global leader in online vehicle marketplaces, CAR Group is well-positioned to capitalise on evolving consumer behaviours and digital trends.
Bottom Line?
CAR Group’s blend of strong financial results and cutting-edge AI innovation sets the stage for sustained leadership in global automotive marketplaces.
Questions in the middle?
- How will CAR Group’s AI investments translate into market share gains against competitors?
- What impact might macroeconomic uncertainties and FX fluctuations have on the company’s FY26 outlook?
- Could further acquisitions accelerate growth in emerging segments like marine and finance?