Can CAR Group Sustain Growth Amid Rising Costs and Global Market Risks?
CAR Group has reported strong first-half results for FY26, with double-digit revenue and earnings growth across all key regions, underpinned by strategic AI investments and expanding market presence.
- Proforma revenue up 13% and EBITDA up 12% in constant currency
- Strong performance across Australia, North America, Latin America, and Asia
- 30% franked interim dividend increased by 10%
- AI integration accelerated via new global AI hub CG/lab in Brazil
- Full-year FY26 outlook reaffirmed with double-digit growth expected
Robust Financial Performance Across Regions
CAR Group Limited (ASX – CAR) has delivered an impressive set of results for the six months ending December 2025, showcasing the resilience and strength of its diversified global digital marketplace business. Proforma revenue rose 13% to $626 million in constant currency terms, while proforma EBITDA increased 12% to $339 million. These figures reflect the underlying business performance after excluding the Australian Tyres business, which was exited in early 2025.
Reported results also tell a positive story, with revenue up 8% in Australian dollars to $626 million and net profit after tax surging 16% to $143 million. The company’s ability to convert 95% of EBITDA into operating cash flow underscores operational efficiency and strong cash generation.
Market Leadership Driving Growth
CAR Group’s regional businesses all contributed to the strong half-year performance. In Australia, carsales maintained its dominant market position, delivering 8% revenue growth driven by increased dealer lead volumes and premium product uptake. North America’s Trader Interactive posted 13% revenue growth in constant currency, buoyed by demand for premium dealer products and media expansion. Latin America’s webmotors achieved outstanding results with a 23% revenue increase, supported by market share gains and new product momentum. Meanwhile, Asia’s Encar grew revenue by 17%, with its Guarantee inspection product reaching 60% penetration of new listings and the launch of Guarantee 2.0 receiving strong dealer adoption.
AI as a Strategic Growth Lever
CEO William Elliott highlighted the company’s strategic focus on customer experience and technology innovation. CAR Group is embedding artificial intelligence deeply into its platforms, products, and operations. The establishment of CG/lab, a global AI hub based in Brazil, is a key initiative aimed at developing scalable agentic AI technologies. Recent innovations include voice-controlled vehicle search and AI companions designed to guide consumers through the buying and selling process, positioning CAR Group at the forefront of digital transformation in automotive marketplaces.
Outlook and Dividend Confidence
Reaffirming its FY26 guidance, CAR Group expects proforma revenue growth of 12-14% and EBITDA growth of 10-13% in constant currency. The company anticipates continued operating leverage in Australia and Latin America, while North America and Asia will see revenue growth outpacing EBITDA due to strategic investments. A 30% franked interim dividend of 42.5 cents per share was declared, marking a 10% increase on the prior period and reflecting confidence in ongoing cash flow generation.
Despite macroeconomic uncertainties and currency fluctuations, CAR Group’s diversified footprint, innovative product pipeline, and AI-driven enhancements provide a solid foundation for sustained growth and shareholder value creation.
Bottom Line?
CAR Group’s blend of market leadership and AI innovation sets the stage for continued momentum in a rapidly evolving global vehicle marketplace.
Questions in the middle?
- How will CG/lab’s AI developments translate into competitive advantages and revenue growth?
- What impact might macroeconomic and currency fluctuations have on CAR Group’s full-year results?
- How will investments in North American marine and Asian Dealer Direct products affect future margins?
