CAR Group Limited has delivered earnings growth well ahead of inflation across its global portfolio in FY26, with proforma revenue rising 12% to $1,253 million and proforma EBITDA expanding 12% to $700 million in constant currency terms. The reported figures paint an equally encouraging picture: net profit after tax jumped 14% to $314 million, driven by strength across all three geographic segments and a diversified revenue base spanning classifieds, dealer solutions, media and data analytics.
The most striking aspect of these results is the quality of the earnings growth. EBITDA converted to operating cash flow at 100%, signalling that the company is not just reporting profit on paper but generating actual cash that can be deployed for shareholder returns or reinvestment. This conversion rate reflects disciplined working capital management and the underlying efficiency of a business model built on network effects and subscription revenues from dealers and advertisers.
CAR Group’s geographic diversification is working as intended. Australia, the home market, grew revenue 7% with adjusted EBITDA up 8%, while carsales maintained its market leadership position. The launch of Nexgate, a next-generation dealer platform, alongside AI-driven improvements to search, personalisation and workflow tools, positions the business to deepen its role across the automotive ecosystem. North America delivered stronger momentum with revenue and EBITDA both up 12% in constant currency, supported by premium dealer products and media gains. Latin America proved the growth star, with revenue accelerating 19% and EBITDA jumping 23% on constant currency, pointing to the upside opportunity in emerging markets where vehicle e-commerce penetration remains low.
The dividend response underscores management confidence. The final dividend of 43.5 cents brings full-year distributions to 86.0 cents per share, up 8% year-on-year. The 30% franking level provides Australian investors with tax-effective income, though the modest increase in per-share distributions relative to NPAT growth suggests the company is holding back capital for growth investments, particularly in product development and AI-led innovation.
For investors, the results validate the shift away from asset-heavy ownership towards a marketplace and SaaS-influenced operating model. The company is harvesting the benefits of ongoing investment in artificial intelligence and connected vehicle ecosystems, which should compound over time as data sets grow and product capabilities deepen. The FY27 guidance reflecting confidence in continued growth provides a reasonable foundation for forward valuations, though execution risk remains around the pace of margin expansion in North America and the timing of profitability ramps in Latin America.
The next focal point will be whether management can maintain EBITDA conversion rates while reinvesting heavily in technology and whether international segments can sustain double-digit growth momentum. Investor reaction to capital allocation priorities and the sustainability of dividend growth will also warrant close attention in coming quarters. This announcement is price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About CAR Group Limited (ASX: CAR)
CAR Group Limited is an ASX-listed digital marketplace operator specializing in online vehicle sales across multiple countries including Australia, New Zealand, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, and North America. The company’s flagship platform, carsales.com.au, is the dominant online automotive marketplace in Australia. The group generates revenue from its global digital marketplace operations and is classified within the Communication Services sector of the S&P/ASX 200 index.
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