Why is this $15 billion ASX 200 stock falling so hard today?

The ASX 200 stock is under heavy selling pressure on Monday.

S&P/ASX 200 Index (ASX: XJO) stock CAR Group Ltd (ASX: CAR) is taking a tumble today.

Shares in the auto listings company closed on Friday trading for $4.03. In morning trade on Monday, they are changing hands for $38.9 apiece, down 5.09%.

For some context, the ASX 200 is down 0.5% at this same time.

This follows the release of CAR Group's half-year results for the six months ending 31 December (H1 FY 2025). And it leaves the CAR Group share price up 15% since this time last year.

Here are the highlights.

ASX 200 investor looking frustrated at falling share price whilst sitting at desk

Image source: Getty Images

ASX 200 stock tumbles on update

The ASX 200 stock released both its proforma and statutory (reported) results today.

That relates to CAR Group's announcement on 14 January that it was shuttering its Australian Tyres business arm.

Management noted that the proforma results best reflected the company's underlying performance, normalising for the exit of its Australian Tyres business.

As for those proforma results, the ASX 200 stock achieved:

  • Revenue of $548 million, up 12% on the prior corresponding period (pcp)
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $302 million, up 12% year on year
  • And EBITDA margin of 55%, in line with H1 Fy 2024

On a reported basis (inclusive of Australian Tyres), CAR Grouped achieved:

  • Revenue of $579 million, up 9% year on year
  • EBITDA of $292 million, up 9% from the pcp
  • Net profit after tax (NPAT) of $123 million up 5%
  • EBITDA to operating cash flow conversion of 95%

On the passive income front, the board declared a 50% franked interim dividend of 38.5 cents per share, up 12% from last year's interim dividend.

In operational highlights, the ASX 200 stock reported strong growth at its webmotors unit in Brazil, along with strong execution of its broader global media strategy.

In North America, Trader Interactive's performance was said to be "resilient" and well-positioned for further growth when the recreational market improved.

What did management say?

Commenting on the results that have failed to boost the ASX 200 stock today, CAR Group CEO Cameron McIntyre said, "CAR Group has delivered an excellent first half."

On its Australian business, McIntyre noted:

In Australia, we have made excellent progress on our C2C payments initiative and have processed close to $30 million of transactions to date. C2C payments has huge potential as we continue to make the buying and selling process easier and safer for customers.

On the international front, he added:

In Brazil, webmotors has had another outstanding six months, significantly extending its audience leadership which supported strong financial outcomes.

The increasing product penetration of our flagship premium products in the US and Korea were also highlights of the last six months.

What's next for the ASX 200 stock?

Looking at what might impact the ASX 200 stock in the months ahead, McIntyre said:

The opportunity ahead of us is significant. We operate in diverse geographies with large, under-penetrated addressable markets. We have multiple levers to deliver future growth, and we are accelerating the exchange of knowledge and ideas between each of our global businesses.

With a robust balance sheet and prudent leverage, we are strategically positioned to invest in further innovation and continue to deliver excellent results for our customers.

Perhaps giving investors pause today, CAR Group did not offer specifics for its FY 2025 full-year guidance, instead noting, "We expect to deliver good growth in Proforma Revenue, Proforma EBITDA and Adjusted NPAT on a constant currency basis in FY25."

The ASX 200 stock expects to see similar proforma EBITDA margins in FY 2025.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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