Smartgroup Corporation Ltd ( (STGXF) ) has released its Q2 earnings. Here is a breakdown of the information Smartgroup Corporation Ltd presented to its investors.
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Smartgroup Corporation Ltd is an Australian company specializing in outsourced employee benefits and administration services, primarily focusing on salary packaging, novated leasing, and fleet management. In its latest earnings report for the half-year ending June 2025, Smartgroup reported a 7% increase in revenue to $159.1 million, driven by higher novated leasing volumes and new client acquisitions. The company’s net profit after tax rose by 11% to $38.1 million, reflecting strong operational performance and strategic investments in growth initiatives.
Key financial highlights include a 13% increase in Operating EBITDA to $63.6 million, with an EBITDA margin of 40%. The company also reported a 20% growth in salary packaging customers and a 24% increase in novated leases under management, attributed to the Federal Government’s Electric Car Discount Policy. Smartgroup’s fleet management services expanded, with a 6% increase in fleet vehicles under management and a successful pilot program for funded leases.
Smartgroup’s strategic focus on enhancing customer experience and expanding its digital capabilities has resulted in significant investments, including $4.5 million in IT development costs. The company’s net operating cash flow was robust, representing 138% of NPATA, and net debt decreased to $41.6 million, indicating a strong financial position.
Looking ahead, Smartgroup’s management remains optimistic about future growth, driven by continued demand for novated leasing and salary packaging services. The company plans to further invest in strategic priorities and leverage its competitive position in the market to drive sustainable growth.