Full Year 2026 CAR Group Ltd Earnings Call Transcript
Key Points
- CAR Group Ltd (CSXXY) delivered another excellent year with 12% growth in both pro forma revenue and EBITDA in constant currency, and adjusted net profit after tax increased 11%.
- The company has a strong track record of consistent double-digit growth over the past five years, driven by its market leadership and reinvestment in innovation.
- AI initiatives, such as CG/engine and CG/lab, are enhancing customer experiences and operational efficiency, leading to higher conversion rates and improved dealer tools.
- The Americas region, now under unified leadership, is showing strong momentum with double-digit growth in North America and Latin America, supported by product innovation and media growth.
- The company maintains a strong balance sheet with 100% cash conversion and leverage at 1.7x, providing flexibility for future investments and M&A.
- Second-half revenue growth in the US (Trader Interactive) decelerated slightly due to media campaign timing, though management remains confident in double-digit growth for FY27.
- The exit of the low-margin Car10 factoring business in Brazil impacted Webmotors' revenue growth, though it was intentional to improve margins.
- Private listings in Australia saw a slowdown in the second half due to a focus on removing stale listings and a temporary dip in consumer sentiment, though volumes have rebounded.
- The company faces FX headwinds, with a 2% negative impact on FY26 results and a similar expected headwind in FY27, particularly from the US and Korea.
- Margins in North America and Asia are expected to contract slightly in FY27 due to continued investments in marine and Dealer Direct, which may pressure near-term profitability.
Thank you for standing by, and welcome to the CAR Group Limited FY26 results. (Operator Instructions)
I would now like to hand the conference over to Mr. William Elliott, CEO. Please go ahead.
Good morning, everyone, and thank you for joining us for CAR Group's FY26 results presentation. Over the next 30 minutes, I'll provide a summary of our results and strategic progress. CAR Group's new CFO, Geoff Trumbull, will take you through our financial highlights, and then we'll finish with a Q&A session where we'll be joined by members of our global leadership team.
And joining Geoff and me in the room here today in Melbourne are Craig Fraser, Managing Director of carsales Australia; Eduardo Jurcevic, CEO of our newly established region, the Americas, which I'll talk to shortly; SB Kim, the Chief Executive Officer of Encar in South Korea; and Rachel Scully, our Executive General Manager of Investor Relations.
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