McMillan Shakespeare Reports $49.6m NPAT, 11.2% Revenue Growth
McMillan Shakespeare Limited reported a 9.7% rise in statutory net profit for the first half of FY26, driven by strong revenue growth and productivity gains. The company declared a fully franked 62 cent dividend and announced a $10 million on-market share buyback.
- Statutory NPAT up 9.7% to $49.6 million
- Group revenue increased 11.2% across all segments
- Oly’s SME client base surged 233%, contributing 5.2% of novated leases
- Onboard Finance receivables grew 31% to $539 million
- Declared fully franked 62 cent dividend and $10 million share buyback
Strong Half-Year Growth
McMillan Shakespeare Limited (ASX: MMS) has delivered a robust financial performance for the half-year ended 31 December 2025, with statutory net profit after tax (NPAT) from continuing operations rising 9.7% to $49.6 million. This growth was underpinned by an 11.2% increase in group revenue, reflecting broad-based gains across its leasing, salary packaging, and finance segments.
The company’s underlying net profit after tax and amortisation (UNPATA) also edged up 1.4% to $50.3 million, signalling steady operational momentum despite ongoing inflationary pressures. Productivity improvements played a key role, with the ratio of customers per full-time employee rising 14.1%, and the cost-to-income ratio improving to 59.7%.
Oly and Onboard Finance Drive Expansion
McMillan Shakespeare’s innovative brand Oly saw a remarkable 233% increase in its small and medium enterprise (SME) client base, now accounting for 5.2% of all group novated lease sales. This surge highlights the company’s successful penetration into the SME market, a segment with significant growth potential.
Meanwhile, Onboard Finance receivables grew strongly by 31% to $539 million, reflecting the scaling of this business line following a successful transition period. This growth is expected to continue supporting earnings in the second half of FY26.
Capital Returns and Dividend Policy
In line with its commitment to shareholder returns, McMillan Shakespeare declared a fully franked interim dividend of 62 cents per share, representing approximately 85% of UNPATA and sitting comfortably within its stated payout policy of 70-100%. Additionally, the company announced an on-market share buyback program of up to $10 million over the next 12 months, bringing total capital returns to shareholders to $53.2 million, a 7.6% increase on the prior corresponding period.
CEO Rob De Luca emphasised the company’s disciplined approach to balancing growth investments with capital returns, noting that strategic investments in technology and customer experience continue to yield tangible benefits. Digital adoption is accelerating, with 83% of Maxxia service interactions completed digitally by December 2025, enhancing customer self-service and operational efficiency.
Outlook and Strategic Focus
Looking ahead to the second half of FY26, McMillan Shakespeare expects further benefits from customer growth, increased Onboard Finance receivables, and efficiencies gained from prior strategic investments. The company remains focused on excelling in customer experience, driving simplicity through technology enablement, and delivering valued solutions.
However, some external factors remain uncertain, including the Federal Government’s review of the Electric Car Discount and the upcoming National Disability Insurance Scheme (NDIS) pricing review, which could influence future results.
Bottom Line?
McMillan Shakespeare’s solid half-year performance and shareholder-friendly capital returns set the stage for cautious optimism amid evolving policy landscapes.
Questions in the middle?
- How will government reviews on electric vehicle incentives impact future novated lease growth?
- What is the expected timeline and pricing strategy for the $10 million share buyback?
- Can Oly sustain its rapid SME client growth and translate it into long-term profitability?
