CAR Group sees AI powering another year of double-digit growth

Double-digit FY27 growth forecast

CAR Group Limited (ASX:CAR) is forecasting another year of double-digit growth, with revenue expected to rise 11-14% in constant currency in FY27. Adjusted EBITDA is forecast to increase 10-13%, while adjusted net profit after tax is expected to grow 9-12%.

The guidance arrives after a strong FY26. Pro forma revenue reached A$1.253 billion, up 12% in constant currency, while pro forma EBITDA rose 10% to A$700 million. Adjusted NPAT increased 11% to A$407 million on the same basis. Reported NPAT was A$314 million, up 14% in Australian-dollar terms.

Cash generation supports global investment

CAR Group converted 100% of EBITDA into operating cash flow before tax during FY26, while its pro forma EBITDA margin held at 56%. Net debt stood at A$1.198 billion at June 30, leaving leverage at 1.7 times pro forma EBITDA, unchanged from the prior year.

The company said it completed a refinancing of its bank facilities in August 2026, extending maturities and adding funding capacity. Growth investment continued across payments, wallet products, value-based pricing, media, site simplification, marine and South Korean branch upgrades, with growth capex remaining at 10% of revenue.

AI moves from feature to marketplace infrastructure

The strategic emphasis is shifting towards AI as a layer across the vehicle-buying journey, rather than a standalone product. CAR Group says its marketplace data includes two decades of listings, pricing, enquiries and completed sales across five markets, which it plans to use in search, vehicle evaluation and transactions.

The company’s FY26 AI innovation is being expanded through CG/lab, a global AI hub based in Brazil. The group says the hub will build agentic AI capabilities, develop buyer and seller agents, integrate CAR experiences into generative platforms and support local product teams. It also says the work is funded within existing investment levels.

CAR Group’s presentation argues that AI agents may increasingly handle vehicle searching, comparison and shortlisting. Its proposed role is to supply the underlying inventory, pricing, vehicle history, dealer information, finance, identity checks and payments, while determining how external agents and large language models access that ecosystem.

Regional growth comes with targeted spending

The company expects high-single-digit revenue growth in Australia in FY27, supported by dealer volume and yield, private-market activity, Instant Offer and media diversification. North America, Latin America and Asia are each expected to deliver double-digit revenue growth in constant currency.

CAR Group expects North American revenue growth to exceed EBITDA growth as it invests in marine. In Asia, revenue growth is also expected to run ahead of EBITDA growth while the group scales Dealer Direct and Home Services. Net finance costs are estimated at A$66 million to A$72 million, depreciation and amortisation is expected to rise 16-19%, and the effective tax rate is forecast at approximately 20-21%.