The Smartgroup Corporation Ltd (ASX: SIQ) share price is in focus after the company reported record half-year results, with revenue up 13% to $179.5 million and operating EBITDA rising 16% to $73.8 million for H1 2026.
Image source: Getty Images
What did Smartgroup report?
- Revenue: $179.5 million, up 13% year-on-year
- Operating EBITDA: $73.8 million, up 16%; margin at 41%, up 1 percentage point
- NPATA and statutory NPAT: $42.4 million, up 11%
- Novated leasing settlements: up 17%
- Battery Electric Vehicle (BEV) new-vehicle orders: up 162% (68% of orders)
- Interim dividend: 21.5 cents per share, fully franked, up 10%
What else do investors need to know?
Smartgroup expanded its automotive partner network nationally during the first half, making novated leasing more accessible and enhancing customer acquisition through dealerships. The group also grew its fleet business, in part by strengthening its partnership with Volkswagen Financial Services, leveraging a capital-light model that combines fleet expertise with third-party funding.
Customer numbers reached new highs — 518,000 active salary packaging customers and 91,600 novated leasing customers by 30 June 2026. Strong BEV demand, ongoing digital investments, and an improved Car Leasing Portal were key contributors to growth. The business maintains a low net debt position (0.2x EBITDA) and generated $50.8 million in operating cash flow.
What did Smartgroup management say?
Scott Wharton, Managing Director and CEO, said:
We are pleased with the Group's performance in the first half. Smartgroup delivered strong revenue and earnings growth, with revenue increasing 13%, operating EBITDA increasing 16% and EBITDA margin expanding to 41%. The result was supported by continued growth across novated leasing and salary packaging, disciplined execution and the enhanced capability of our platform. Market conditions remained favourable during the period, with strong consumer demand for electric vehicles. Some international factors likely accelerated purchasing decisions and contributed to elevated levels of activity during the half.
What's next for Smartgroup?
Looking ahead, management sees a supportive environment for growth, underpinned by robust demand for novated leasing, rising interest in electric vehicles, and continued awareness of salary packaging savings. Smartgroup aims to deepen client relationships, expand fleet and novated leasing penetration, and keep modernising its digital platform.
The company is targeting EBITDA margins in the mid-40s during 2027 and plans further investment in digital capabilities and partnerships to capture future mobility and automotive growth opportunities. The capital-light model and strong cash generation continue to support growth and regular fully franked dividends.
Smartgroup share price snapshot
The Smartgroup share price has been among the best performers on the S&P/ASX 200 index (ASX: SIQ) over the past 12 months with a gain of 60%.
