How CAR Group’s FY25 Growth Sets the Stage for a Bold FY26 Expansion
CAR Group Limited has reported solid full-year FY25 results with revenue surpassing AUD 1.18 billion and adjusted NPAT rising to AUD 377 million, underpinned by global marketplace strength and strategic innovation. The company projects continued double-digit growth in FY26, driven by technology investments and market expansion.
- FY25 revenue reaches AUD 1.184 billion, up 8% year-on-year
- Adjusted NPAT grows 10% to AUD 377 million
- Proforma EBITDA margin sustained at 56%
- Strong growth across Australia, North America, Latin America, and Asia
- FY26 outlook targets 12-14% revenue growth and 9-13% NPAT growth in constant currency
Global Marketplaces Drive FY25 Performance
CAR Group Limited (ASX – CAR) has delivered a robust financial performance for the fiscal year ended June 30, 2025, with revenue climbing to AUD 1.184 billion, marking an 8% increase over the prior year. Adjusted net profit after tax (NPAT) rose 10% to AUD 377 million, reflecting the company’s successful execution of its strategic priorities across its diversified global portfolio.
The company’s proforma EBITDA margin held steady at an impressive 56%, underscoring operational efficiency amid ongoing investments in technology and market expansion. CAR Group’s marketplaces now feature 2.3 million vehicles online and attract 49 million unique monthly users, highlighting the scale and engagement of its platforms.
Regional Strength and Segment Growth
Growth was broad-based across CAR Group’s key regions. Australia saw revenue and earnings growth driven by market leadership, new product launches such as C2C Payments, and a robust automotive market. North America delivered solid results despite cyclical softness in recreational sectors, buoyed by increased adoption of premium products and media expansion.
Latin America’s webmotors platform achieved outstanding growth through national expansion and new product introductions, including a successful dealer loyalty program with Santander Bank. Asia’s performance was bolstered by increased capacity in Guarantee Inspection centers and a 24% rise in Encar Home delivery transactions, supported by AI-driven efficiencies.
Innovation and Technology as Growth Catalysts
CAR Group’s FY25 results reflect significant investments in digital retailing, AI, and platform enhancements. The completion of Project Merlin improved user experience with faster navigation and personalized engagement, while the Bello communications platform enhanced buyer-seller interactions with integrated trust and safety features.
Looking ahead, the company plans to deepen its technology edge with initiatives like Autogate Revolution, an omnichannel SaaS platform for dealers, and AI-powered lead nurturing in Latin America. These innovations aim to drive higher engagement, conversion rates, and operational excellence.
Confident Outlook for FY26
CAR Group projects continued momentum into FY26, targeting proforma revenue growth of 12-14%, EBITDA growth of 10-13%, and adjusted NPAT growth of 9-13% on a constant currency basis. The outlook anticipates sustained operating leverage in Australia and Latin America, with strategic investments in North America and Asia to fuel product diversification and market penetration.
The company also declared a final dividend of 41.5 cents per share, an 8% increase from the previous year, reflecting strong cash flow generation and a prudent balance sheet with a net debt to EBITDA ratio of 1.7x.
CAR Group’s clear strategic focus on strengthening core markets, extending marketplaces, diversifying offerings, and operational excellence positions it well to capitalize on the growing demand for frictionless vehicle buying and selling experiences globally.
Bottom Line?
With solid FY25 results and ambitious FY26 plans, CAR Group is poised to deepen its global leadership in online automotive marketplaces.
Questions in the middle?
- How will macroeconomic and geopolitical risks impact CAR Group’s FY26 growth targets?
- What is the potential market impact of CAR Group’s AI-driven product innovations on competitors?
- How will currency fluctuations affect reported earnings given CAR Group’s international footprint?
