CAR Group Limited reported a 14% increase in net profit after tax to AUD 332.4 million for FY26, driven by strong revenue growth and AI innovation across its global vehicle marketplaces.
- 14% net profit after tax growth to AUD 332.4 million
- Proforma revenue up 12% to AUD 1.253 billion in constant currency
- AI innovation hub CG/lab launched to accelerate product development
- Strong performance across Australia, North America, Latin America and Asia
- Final dividend increased 5% to 43.5 cents per share, fully franked
Robust Financial Growth Across Diversified Markets
CAR Group Limited (ASX:CAR) delivered a solid FY26 performance, posting a 14% increase in reported net profit after tax (NPAT) to AUD 332.4 million, up from AUD 291.7 million the prior year. Proforma revenue rose 12% in constant currency to AUD 1.253 billion, reflecting the strength of its diversified global footprint spanning Australia, North America, Latin America, and Asia.
Adjusted net profit after tax attributable to members increased 8% to AUD 407.2 million, underpinning a robust adjusted earnings per share (EPS) gain of 8% to 107.6 cents. The company maintained a strong proforma EBITDA margin of 56%, with EBITDA growing 12% in constant currency to AUD 700 million. Operating cash flow conversion remained at a perfect 100%, highlighting the efficiency of its marketplace business model.
AI Innovation Hub Accelerates Product Development
CAR Group is doubling down on artificial intelligence as a core driver of future growth. The launch of CG/lab, its dedicated AI innovation hub based in Brazil, is a key milestone. This centre brings together product, engineering, and AI specialists to develop scalable AI-powered solutions that enhance vehicle search, dealer lead management, and customer engagement across all markets.
Innovations such as conversational search, AI-powered vehicle recommendations, and lead nurturing tools are already delivering tangible benefits: carsales in Australia recorded a 26% uplift in session-to-lead conversion, while webmotors’ advanced AI search increased lead submissions by four times. Dealer tools like Acquire and AI merchandising software are streamlining inventory sourcing and listing quality, driving higher engagement and faster sales.
Strong Segment Performances and Ecosystem Expansion
Each regional segment contributed to growth, reflecting CAR Group’s diversified approach. In Australia, revenue grew 7% to AUD 519 million, supported by increased dealer lead volumes, media advertising growth, and the launch of the Nexgate dealer platform that integrates inventory, leads, and workflow management.
North America saw 12% revenue growth in constant currency to AUD 327 million, driven by premium dealer products, media expansion, and contributions from recent acquisitions. The marine and powersports verticals, despite macroeconomic headwinds, showed resilience bolstered by AI and software integration.
Latin America, led by webmotors in Brazil, posted a 19% revenue increase, with strong audience growth, dealer engagement through the Wallet loyalty program, and expansion of finance and media offerings. Chileautos in Chile also delivered solid results.
Asia’s revenue rose 15%, powered by Encar’s growth in South Korea through expanded Guarantee inspections, digital retailing services, and Dealer Direct trade-in volumes, supported by AI-enabled process improvements.
Sustainability and Climate Commitments
CAR Group provided detailed climate disclosures for FY26, marking its first year of mandatory reporting under AASB S2. The Group’s emissions footprint remains modest given its digital business model, but it is committed to increasing renewable electricity use across its sites by 2030 and transitioning 100% of its fleet to low or zero emission vehicles by 2035. Scenario analyses indicate that climate-related physical risks, such as extreme weather events, present a medium-level risk with manageable financial impacts.
Capital Management and Dividend Policy
The Board declared a fully franked final dividend of 43.5 cents per share, up 5% from the prior year, bringing total dividends for FY26 to 86 cents per share, an 8% increase. The Dividend Reinvestment Plan (DRP) remains in place with no discount for the final dividend. Post-year end, the Group refinanced its syndicated loan facility, increasing the limit from AUD 820 million to AUD 1.2 billion and extending maturities to 2029-2031, enhancing financial flexibility for ongoing growth investments.
Leadership and Remuneration Aligned with Performance
FY26 saw a smooth leadership transition with William Elliott appointed Managing Director and CEO in August 2025, following Cameron McIntyre’s departure. Elliott’s fixed remuneration was set upon appointment and remained unchanged during the year. The Board welcomed Geoff Trumbull as CFO in March 2026, who has already contributed to financial leadership.
Executive remuneration outcomes closely tracked the Group’s strong financial and strategic performance, with short-term incentives paid at 89.2% of maximum and long-term incentives vesting at 78%. The People and Culture Committee emphasised the importance of culture, noting Great Place to Work® certifications across key markets and a new Future of Work strategy focusing on AI literacy and leadership development.
Looking Ahead to FY27
CAR Group enters FY27 with confidence, forecasting revenue growth of 11-14%, adjusted EBITDA growth of 10-13%, and adjusted NPAT growth of 9-12% in constant currency. The outlook anticipates continued operating leverage in Australia and Latin America, double-digit growth in North America fueled by media and marine investments, and sustained expansion in Asia driven by Dealer Direct and Encar Home services.
With a strong balance sheet, diversified portfolio, and AI-powered innovation pipeline, CAR Group is well positioned to navigate evolving vehicle markets and capitalize on the shift toward electric vehicles and connected ecosystems.
Bottom Line?
CAR Group’s FY26 results underscore the resilience of digital vehicle marketplaces, with AI innovation and ecosystem expansion key to sustaining growth amid evolving global vehicle markets.
Questions in the middle?
- How will ongoing AI investments translate into new revenue streams across CAR Group’s diverse markets?
- What impact might rising interest rates and economic uncertainty have on dealer and consumer activity in FY27?
- How will CAR Group balance expansion with sustainability commitments, particularly the fleet transition to zero emission vehicles?