Highlights:

• Profit jumped 14%, while CAR Group targets continued earnings growth in FY27.
• 43.5-cent final dividend lifts FY26 shareholder distributions to 86 cents.
• AI investment is deepening, potentially reshaping how CAR monetises its global marketplaces.

Strong FY26 PerformanceCAR Group Limited (ASX: CAR), an ASX large-cap digital marketplace company, announced its FY26 results on 10 August 2026, reporting higher revenue and earnings across its international portfolio. Reported revenue reached AU$1.253 billion, while reported net profit after tax climbed 14% to AU$314 million, highlighting resilient marketplace demand and continued execution across key regions.Earnings Growth Extends Across the PortfolioOn a proforma basis, FY26 revenue increased 12% in constant currency to AU$1.253 billion, while EBITDA advanced 12% to AU$700 million. Adjusted NPAT rose 11% in constant currency to AU$407 million, and adjusted earnings per share reached 107.6 cents. Reported EBITDA-to-operating-cash-flow conversion stood at 100%, reinforcing the quality of earnings and cash generation. 

Regional diversification remained a major growth driver. Australia delivered 7% revenue growth, while North America recorded 12% constant-currency growth. Latin America stood out with revenue up 19% and adjusted EBITDA rising 23% in constant currency. Asia also performed strongly, with revenue increasing 15% and EBITDA advancing 14%. AI Becomes a Bigger Growth LeverCAR Group is increasingly extending beyond traditional vehicle classifieds into connected digital ecosystems. Its proprietary AI platform supports conversational search, merchandising, sourcing and lead qualification. AI conversational search generated a 26% uplift in session-to-lead conversion, while webmotors users employing AI-led search were four times more likely to submit a lead. 

The company also declared a 43.5-cent-per-share final dividend, taking FY26 dividends to 86 cents per share, an 8% annual increase. What Lies Ahead for CAR Grou?For FY27, CAR Group forecasts 11%-14% revenue growth, 10%-13% growth in adjusted EBITDA, and a 9%-12% increase in adjusted NPAT, all measured on a constant-currency basis.The outlook suggests CAR Group is targeting another year of meaningful expansion, supported by geographic diversification, premium marketplace products and AI-led innovation. Execution will remain important, particularly as macroeconomic conditions, customer demand, inflation, foreign exchange movements and geopolitical risks could influence outcomes. If CAR converts its growing audience, proprietary data and technology investments into deeper customer engagement, FY27 could further strengthen its position among ASX large-cap digital businesses.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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