Smartgroup Corporation Ltd
ASX:SIQ
Smartgroup Corporation Ltd
Smartgroup Corp. Ltd. engages in the provision of employee benefits and workforce optimization services. The company is headquartered in Sydney, New South Wales and currently employs 576 full-time employees. The company went IPO on 2014-07-02. The firm operates through three segments: Outsourced administration (OA), Vehicle services (VS) and Software, distribution and group services (SDGS). OA segment provides outsourced salary packaging services, novated leasing, share plan administration and outsourced payroll services. VS segment provides end-to-end fleet management services. SDGS segment provides salary packaging software solutions, which include the marketing of salary packaging debit cards, distribution of vehicle insurances and workforce management software to the healthcare industry.
Smartgroup Corp. Ltd. engages in the provision of employee benefits and workforce optimization services. The company is headquartered in Sydney, New South Wales and currently employs 576 full-time employees. The company went IPO on 2014-07-02. The firm operates through three segments: Outsourced administration (OA), Vehicle services (VS) and Software, distribution and group services (SDGS). OA segment provides outsourced salary packaging services, novated leasing, share plan administration and outsourced payroll services. VS segment provides end-to-end fleet management services. SDGS segment provides salary packaging software solutions, which include the marketing of salary packaging debit cards, distribution of vehicle insurances and workforce management software to the healthcare industry.
Strong Results: Smartgroup reported strong first-half 2025 results, with revenue up 7% to $159.1 million and NPATA up 12% to $38.1 million.
Profitability: EBITDA rose 13% to $63.6 million, with EBITDA margin improving by 2 percentage points to 40%.
Dividend: The Board declared an interim fully franked dividend of $0.195 per share, representing 69% of NPATA.
Growth Drivers: Growth was driven by higher novated leasing volumes, new client wins, and improved customer penetration.
Electric Vehicles: EVs made up 48% of new car orders, with plug-in hybrids at 12%; ICE vehicle orders also grew 9%.
Outlook: Management reaffirmed focus on digital and technology investment, targeting an EBITDA margin in the mid-40s during 2027.
Strong Cash Generation: Cash conversion was 138% of NPATA, supporting both investment and dividends.
Technology Investment: 2026 will be a significant year of technology change, laying groundwork for margin expansion in 2027.
