Full Year 2025 Smartgroup Corporation Ltd Earnings Call Transcript
Key Points
- Smartgroup Corporation Ltd (ASX:SIQ) reported an 8% increase in revenue to $329.3 million for 2025, driven by higher novated leasing volumes and new client wins.
- EBITDA increased by 14% to $135.3 million, with an EBITDA margin of 41%, up two percentage points from the previous year.
- The company declared a final fully franked dividend of 21.5 cents per share and a special dividend of 12 cents per share, reflecting strong cash generation.
- Smartgroup achieved a 49% growth in battery electric vehicle orders, indicating strong demand in the electric vehicle segment.
- The company improved its operational efficiency, with a 16% increase in the number of customers per operations FTE, demonstrating scalability and efficiency gains.
- Total expenses increased by 5% to $182.7 million, with non-staff costs rising by 12% due to enhanced marketing and technology investments.
- The company anticipates significant technology investment in 2026, which may impact short-term margins before achieving mid-40s EBITDA margins by 2027.
- There was a modest decline in leasing yield in the first half of 2025, although it recovered in the second half.
- The end of the federal government's electric car discount policy for plug-in hybrid vehicles led to a 31% decline in new orders for these vehicles.
- Smartgroup's internal fleet funding is expected to be significantly lower in the coming years, which may impact its capital allocation strategy.
Thank you for standing by and welcome to the Smart Group Corporation Limited SIQ FY 2025 results released. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I would now like to hand the conference over to Mr. Scott Wharton, CEO. Please go ahead.
Great, thank you Betsy and good morning everyone and thank you for joining us on the call today. My name is Scott Wharton and I am the Managing Director and CEO of Smart Group. Joining me on the call today is Jason King, our Chief Financial Officer. First, I'd like to acknowledge the traditional owners of the land on which I'm speaking to you, the Gadigal people of the Eora Nation. As this event is broadcast nationally, I would also like to acknowledge the traditional custodians of the various lands on which you all join this call. I recognise their continuing connection to land, waters and culture and pay my respects to their elders
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