How CAR Group Achieved Double-Digit Profit Growth Across Four Continents
CAR Group Limited reported a strong half-year result for the period ending 31 December 2025, with revenue up 8% and adjusted net profit rising 11.5%, driven by robust performance across Australia, North America, Latin America, and Asia.
- Revenue increased 8% to A$625.8 million
- Adjusted net profit up 11.5% to A$196.8 million
- Strong growth in Latin America (30% revenue) and Asia (17% revenue)
- Net debt to EBITDA leverage maintained at a healthy 1.8x
- Interim dividend declared at 42.5 cents per share, 30% franked
Robust Financial Performance Across Regions
CAR Group Limited has released its half-year results for the six months ended 31 December 2025, showcasing solid growth across its diversified automotive classifieds and data services business. The company reported revenue of A$625.8 million, marking an 8% increase compared to the prior corresponding period. Adjusted net profit after tax rose 11.5% to A$196.8 million, reflecting operational strength and effective cost management.
Growth was broad-based, with all key markets contributing. Latin America led the charge with a remarkable 30% revenue increase, underpinned by audience expansion and deeper market penetration. Asia followed with a 17% revenue rise, driven primarily by the success of the Encar business in South Korea, particularly in guaranteed inspection products and home delivery services.
Strong Momentum in Australia and North America
In Australia, the online advertising segment grew revenue by 9%, supported by increased lead volumes and premium product uptake. The data, research, and services division also posted a 6% revenue increase, benefiting from customer acquisition in its Redbook data business. North America delivered a 13% revenue uplift, despite challenges in the recreational market, with dealer revenue growth driven by premium product adoption and media segment expansion.
The company’s balance sheet remains robust, with net debt to EBITDA leverage at a conservative 1.8 times and an impressive 95% EBITDA to cash conversion ratio. This financial discipline supports ongoing investments and acquisitions, including the recent purchases of Dealership Performance CRM, Pop Sells, Revenda Mais, and Machines4U, which are expected to enhance CAR Group’s market position and product offerings.
Dividend and Outlook
Reflecting confidence in its financial position, CAR Group declared an interim dividend of 42.5 cents per share, 30% franked, payable on 13 April 2026. The company also maintained its Dividend Reinvestment Plan, offering shareholders an option to increase their holdings without discount.
Looking ahead, CAR Group anticipates continued double-digit revenue and EBITDA growth in FY26 on a constant currency basis. The company expects high single-digit revenue growth in Australia, double-digit growth in North America, Latin America, and Asia, supported by product innovation, customer yield improvements, and strategic acquisitions. Adjusted net profit is forecast to grow between 9% and 13%, with ongoing investments in marketing and product development.
Overall, CAR Group’s half-year results reinforce its position as a leading global player in automotive classifieds and data services, with a diversified portfolio and a clear growth trajectory across multiple geographies.
Bottom Line?
CAR Group’s strong half-year momentum sets the stage for sustained growth, but investors will watch closely how acquisitions and market dynamics unfold in FY26.
Questions in the middle?
- How will CAR Group integrate recent acquisitions to drive future earnings?
- What impact will the lower dividend franked amount have on investor sentiment?
- How sensitive is the company’s outlook to currency fluctuations and economic conditions in key markets?
