Car Group CEO Steps Down as Profit Forecast Disappoints Investors

Highlights:

• Car Group Limited (ASX: CAR) CEO Cameron McIntyre to step down, with CFO William Elliott named as successor.
• The company forecasts FY25 net income between $273 million and $277 million, indicating a year-on-year decline.
• Shares fell 3.05% to $36.30 at the time of writing following the leadership change and earnings downgrade.

Leadership Change Sparks Market Reaction

Car Group Limited (ASX: CAR) shares dropped further in afternoon trade, falling 2.5% after the company announced that long-time chief executive Cameron McIntyre will be stepping down. McIntyre, who has led the digital auto classifieds business for several years, will be replaced by current chief financial officer William Elliott. The leadership change comes as the company attempts to navigate a challenging period, with investors responding cautiously to both the transition and the company's latest financial guidance. McIntyre’s exit is scheduled for later in 2025, allowing time for a smooth transition, but the market’s immediate reaction reflects uncertainty about the strategic direction under new leadership.

Weaker Earnings Outlook for FY25

Adding to the pressure, Car Group Limited also issued a downbeat forecast for the 2025 financial year. The company expects net income to fall between $273 million and $277 million, a decline from the current year’s results. This guidance has raised concerns among investors about growth momentum and profit margins. At the time of writing, Car Group Limited (ASX: CAR) was trading at $36.30, down $1.14 or 3.05%, marking an extended slide in share price as the day progressed.

Investor Sentiment Turns Cautious

The twin announcement of a CEO departure and lower profit expectations has prompted a wave of cautious sentiment among shareholders and analysts. While Elliott brings strong financial acumen to the top role, the company will need to reassure the market about its long-term strategy and ability to maintain growth across its domestic and international markets. As FY25 approaches, all eyes will be on Car Group's leadership team to steer the company through its transitional phase and deliver on investor expectations.

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