Smartgroup lifts earnings and margins on record leasing and packaging demand

Smartgroup Corporation Ltd ( (AU:SIQ) ) has shared an announcement.

Smartgroup reported solid full-year 2025 results, with revenue up 8% to $329.3m and operating EBITDA rising 14% to $135.3m, lifting its margin to 41% on the back of higher novated leasing settlements and growing salary packaging customers. Strong operating cash flow, low net debt of 0.3x EBITDA and record customer numbers in salary packaging, novated leasing and fleet allowed the company to declare fully franked ordinary and special dividends totalling 53 cents per share, equal to 90% of NPATA.

Customer growth was underpinned by enhanced digital marketing, service improvements and technology investment, with active salary packaging customers reaching 491,000 and novated leasing customers 85,300 by year-end. Novated leasing demand remained robust, including a sharp rise in battery electric vehicle orders, while internal combustion engine vehicles still accounted for more than half of new car leases, underscoring Smartgroup’s balanced exposure as government policy on electric vehicles continues to evolve.

The most recent analyst rating on (AU:SIQ) stock is a Buy with a A$10.50 price target. To see the full list of analyst forecasts on Smartgroup Corporation Ltd stock, see the AU:SIQ Stock Forecast page.

More about Smartgroup Corporation Ltd

Smartgroup Corporation Ltd is an Australian provider of employee services and fleet solutions, with a core focus on salary packaging, novated leasing and fleet management. The group targets a broad customer base across sectors by combining digital platforms, personalised support and simplified processes to grow its addressable market and deepen client engagement.

Average Trading Volume: 366,802

Technical Sentiment Signal: Buy

Current Market Cap: A$1.12B

For a thorough assessment of SIQ stock, go to TipRanks’ Stock Analysis page.