COG Financial Services has opened FY2027 with a sharp earnings increase, driven by a major acceleration in salary packaging and novated leasing. The company is targeting EBITDA to shareholders growth of 10% or better for the full year, although the quarterly figures remain unaudited and acquisition effects complicate comparisons.
- Underlying revenue of $103.0 million, up 8% on the prior corresponding period
- EBITDA to shareholders rose 53% to $15.3 million
- Salary Packaging EBITDA increased 128% to $10.7 million
- Novated lease customers grew 37% and salary packaging customers 22%
- FY2027 target set at 10% or better EBITDA growth to shareholders
Salary packaging drives a 53% earnings jump
COG Financial Services Limited (ASX:COG) has started FY2027 with a disproportionate lift in earnings from salary packaging, reporting underlying EBITDA to shareholders of $15.3 million for the three months to 30 September 2026. That was 53% above the prior corresponding period, while underlying NPATA to shareholders rose 57% to $9.9 million.
Underlying revenue reached $103.0 million, an 8% increase on Q1 FY2026. The figures are unaudited and exclude selected items, including interest income from underlying revenue, share-based payment expense and a cash settlement received by QPF Holdings. On the reported underlying basis, group EBITDA rose 33% to $19.8 million and NPAT increased 35% to $10.5 million.
Novated leasing volumes provide the momentum
The Salary Packaging segment supplied most of the acceleration. Its EBITDA to shareholders climbed 128% to $10.7 million, compared with $4.7 million a year earlier. Lease settlements rose 84%, segment revenue increased 56%, novated lease customers grew 37% and total salary packaging customers increased 22%.
The result extends the earnings contribution from COG’s expanding salary packaging platform, following the EasiFleet acquisition, which broadened its presence across Australian states and territories. COG said organic momentum and strategic acquisitions supported the quarter, while its chief executive Andrew Bennett described the expanding salary packaging and novated business as continuing to perform strongly.
Broking and aggregation remains broadly steady
Broking & Aggregation was less dramatic but still positive, producing $6.2 million of EBITDA to shareholders, up 2% from $6.1 million. COG said commercial equipment finance remained strong, with QPF through SAF and Access particularly notable. The segment now includes Centrepoint, AAA, WIB and EQ1, meaning the year-on-year comparison is not entirely like-for-like; AAA Finance was acquired in May 2025 and has no prior-period comparative.
The company also reported no EBITDA contribution from Lending, against $0.5 million in the prior corresponding quarter, while Other costs widened to $1.6 million from $1.3 million. Within Broking & Aggregation, the underlying EBITDA mix was led by Broking at 56%, followed by peer-to-peer lending at 21% and Aggregation at 12%, with Broker services contributing 11%.
COG sets a 10% FY2027 growth target
COG is targeting EBITDA to shareholders growth of 10% or better in FY2027. Its stated growth plans include further salary packaging market-share gains, continued electric vehicle uptake, possible legislative changes progressing through parliament and additional bolt-on acquisitions. The company also plans to invest in its aggregation platform and grow Equity-One through geographic expansion and new fund development.
Capital remains part of that equation. COG said its corporate debt to EBITDA ratio was 1:1 and that it retained substantial debt capacity to support expansion. The open question is whether the exceptional first-quarter salary packaging contribution can be sustained sufficiently for the full-year target, particularly as the group continues to combine organic growth with acquisitions and changes to segment composition.
Bottom Line?
The first quarter has put COG ahead of its FY2027 growth hurdle, but sustaining the pace will depend on salary packaging volumes, EV demand and disciplined use of debt for expansion.
Questions in the middle?
- Can salary packaging maintain its 128% EBITDA growth rate as the FY2027 comparison base rises?
- How much of the full-year result will come from organic growth versus acquisitions and increased ownership stakes?
- Will COG deploy its available debt capacity for further bolt-on deals, and at what earnings contribution?