Highlights

• Smartgroup delivered higher first-half revenue and earnings as novated leasing and salary packaging volumes continued to expand.
• Vehicle orders and leases under management recorded double-digit growth, with battery-electric vehicles dominating new novated lease demand.
• Strong cash conversion, lower net debt and a fully franked interim dividend supported the company’s financial position.

H1 2026 Earnings Maintain Growth Momentum

Smartgroup Corporation Ltd (ASX: SIQ) released its 2026 interim financial results on 27 August 2026, covering the six months ended 30 June 2026. Revenue increased 12.8% to AU$179.5 million, compared to AU$159.1 million in the prior corresponding period. Profit attributable to shareholders advanced 11.3% to AU$42.4 million.

Operating EBITDA reached AU$73.8 million, representing 16% growth, while the EBITDA margin improved to 41% from 40%. NPATA also increased 11% to AU$42.4 million, with NPATA per share rising 9% to 30.7 cents. Net operating cash inflow was AU$50.8 million, equivalent to 120% of NPATA.

Novated Leasing Drives Volume Expansion

Novated leasing remained a major growth contributor. During the period, new vehicle orders grew 34%, novated leasing settlements increased 17%, and the number of novated leases under management reached 91,600, up 15% from a year earlier. Battery-electric vehicles represented 68% of new novated lease orders during the half, compared with 5% for plug-in hybrids and 27% for internal-combustion vehicles.

Salary packaging customers increased 7% to 518,000, while fleet vehicles under management grew 12% to 36,200. Smartgroup also continued investing in digital capability, automation and artificial intelligence to improve operating scalability.

Balance Sheet and Dividend Remain Supportive

Net debt declined to AU$35.4 million from AU$38.1 million at 31 December 2025, while leverage eased to 0.2 times EBITDA. The Board approved a fully franked interim distribution of 21.5 cents per share, equivalent to 70% of NPATA for the half year, with shareholders due to receive the payment on 23 September 2026.

Outlook

Smartgroup enters the second half with expanding leasing volumes, growing salary packaging participation and a relatively low leverage position. Continued EV adoption, digital investment and operating efficiency could support further growth, although maintaining margins while funding strategic initiatives will remain important as customer volumes increase.

Note- All data presented is based on information available at the time of writing.

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