Smartgroup Posts 8% Revenue Growth and 11% NPATA Rise in 2025
Smartgroup Corporation Ltd reported robust 2025 results, driven by digital innovation, expanding customer base, and a strengthened sustainability strategy. The company declared generous dividends and outlined a confident outlook for continued margin expansion.
- Revenue up 8% to $329.3 million
- NPATA rises 11% to $80.2 million
- Record customer numbers across salary packaging, novated leasing, and fleet
- Declared fully franked final and special dividends totaling 33.5 cents per share
- Advanced ESG commitments with new 2028 sustainability strategy and emissions reductions
Strong Financial Momentum
Smartgroup Corporation Ltd (ASX: SIQ) has delivered a standout performance for the year ended 31 December 2025, with revenue climbing 8% to $329.3 million and net profit after tax and amortisation (NPATA) increasing 11% to $80.2 million. These results reflect the company’s disciplined execution and strategic focus amid evolving market conditions.
Underlying this growth is a record expansion in customer numbers, with active salary packaging customers reaching 491,000, novated leases under management rising 15% to 85,300 vehicles, and fleet management vehicles increasing 9% to 35,200. This broad-based operational strength underscores Smartgroup’s leadership in employee benefits and fleet services.
Digital Innovation and Strategic Partnerships
Smartgroup’s multi-year strategic roadmap, launched in early 2024, continues to drive transformation. The company has invested heavily in digital platforms, including the unified smart.com.au portal and an enhanced car leasing portal, which have together attracted around 3 million users since launch. These digital assets simplify customer journeys and enable scalable growth across salary packaging, novated leasing, and fleet services.
Strategic partnerships have further expanded Smartgroup’s reach and product offering. Notably, the collaboration with BMW Financial Services has integrated novated leasing directly into BMW and MINI dealerships, streamlining the customer experience and supporting electric vehicle adoption. Additional partnerships with Finspo, Karmo, and Volkswagen Financial Services broaden the benefits ecosystem, including mortgage referral services and sustainable energy solutions.
Sustainability and ESG Leadership
Smartgroup has sharpened its environmental, social, and governance (ESG) commitments with the launch of its 2028 sustainability strategy, “An Empowered Future.” This strategy aligns closely with corporate objectives and focuses on reducing environmental impact, enabling clients to make sustainable choices, and fostering an inclusive workplace.
The company reported a 7% reduction in total greenhouse gas emissions in 2025 compared to the prior year, with Scope 1 and 2 emissions down 45%. Its Carbon Offset Program has directed $1.6 million towards revegetation and biodiversity projects across Australia, while employees contributed by planting over 1,000 trees in volunteer events. Smartgroup also maintained recognition as an Inclusive Employer and advanced reconciliation initiatives with First Nations communities.
Shareholder Returns and Capital Management
The Board declared a fully franked final ordinary dividend of 21.5 cents per share and a fully franked special dividend of 12.0 cents per share, payable in March 2026. Combined with the interim dividend of 19.5 cents, total dividends for 2025 amount to 53.0 cents per share, reflecting strong cash generation and a capital-light business model.
Smartgroup’s net debt stood at $38.1 million, supported by undrawn facilities of $38.5 million, ensuring financial flexibility. The company targets an EBITDA margin in the mid-40% range by 2027, underpinned by ongoing digital investments and operational efficiencies.
Governance and Leadership
Smartgroup’s leadership team, reshaped in 2024, has been credited with driving the company’s momentum and embedding agile, customer-centric ways of working. Executive remuneration outcomes were closely aligned with performance, with 88% of short-term incentives paid and 73% of performance rights vesting in 2025.
The Board welcomed the appointment of Paul Rogan in early 2026, signaling continued focus on governance and strategic oversight.
Outlook
Looking ahead, Smartgroup remains confident in its growth trajectory, emphasizing technology modernization, further digital innovation, and expanding product offerings. The company is well-positioned to capitalize on market opportunities, including the accelerating transition to electric vehicles and the growing demand for employee financial wellbeing solutions.
Bottom Line?
Smartgroup’s 2025 results set a robust foundation for growth, but execution of digital and ESG initiatives will be critical to sustaining momentum amid evolving market and regulatory landscapes.
Questions in the middle?
- How will potential changes to Fringe Benefits Tax legislation impact Smartgroup’s core salary packaging business?
- What are the risks and opportunities associated with the evolving electric vehicle market and government policies for Smartgroup’s novated leasing segment?
- How effectively can Smartgroup scale its digital platform to deepen customer engagement and cross-sell new products?
