Highlights

  • H1'FY26 proforma revenue reached approximately A$626 million, up 13% in Australian dollar terms and 14% in constant currency.
  • Adjusted EBITDA increased 12% to around A$339 million, while adjusted net profit after tax rose 11% to approximately A$197 million.
  • Reported net profit after tax attributable to owners increased 16% to A$143.3 million, with reported earnings per share up 16% to 37.9 cents.
  • International growth remained a key driver, with webmotors revenue up 30%, Encar up 17% and Trader Interactive up 13% in constant currency.
  • CAR Group reaffirmed FY26 guidance for proforma revenue growth of 12%–14% and adjusted NPAT growth of 9%–13% in constant currency.

CAR Group (ASX:CAR) has evolved well beyond its origins as an Australian online vehicle-classifieds business.

What began as carsales is now a portfolio of automotive marketplaces spanning Australia, Brazil, South Korea and North America, with international businesses contributing an increasingly important share of group growth.

That shift was evident in H1'FY26.

For the six months ended 31 December 2025, CAR Group reported proforma revenue of approximately A$626 million, up 13% in Australian dollar terms and 14% in constant currency. Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 12% to around A$339 million.

Reported net profit after tax attributable to owners rose 16% to A$143.3 million.

The result reinforces the strategic importance of geographic diversification. While the Australian marketplace remains a substantial and profitable foundation, faster growth across Brazil, South Korea and North America is increasingly shaping the group’s earnings profile.

From carsales to a Global Marketplace Group

CAR Group operates digital marketplaces that connect vehicle buyers, dealers and private sellers.

Its Australian business includes the flagship carsales platform, while its major international assets include webmotors in Brazil, Encar in South Korea and Trader Interactive in North America.

The company also operates data businesses including RedBook.

Its revenue model extends beyond basic vehicle listings.

CAR Group generates income from dealer subscriptions, private-seller listings, premium placement products, digital advertising, data services and an expanding range of transaction-related tools.

This creates several ways to increase revenue without depending entirely on higher vehicle-listing volumes.

As marketplaces gain scale, network effects can become increasingly important.

Buyers are attracted to platforms with more inventory, while dealers and sellers value marketplaces with larger audiences. This interaction can strengthen established platforms and make it more difficult for smaller competitors to replicate their reach.

H1'FY26 Revenue Reached A$626 Million

Proforma revenue for H1'FY26 reached approximately A$626 million.

The result represented growth of 13% in Australian dollar terms and 14% in constant currency.

Adjusted EBITDA increased 12% to around A$339 million.

Adjusted net profit after tax rose 11% to approximately A$197 million.

The statutory result also improved, with reported NPAT attributable to owners increasing 16% to A$143.3 million.

Reported earnings per share increased by the same rate to 37.9 cents, while adjusted earnings per share reached 52.0 cents.

Operating cash flow was A$263 million.

The balance sheet remained supported by net debt to EBITDA of approximately 1.8 times.

This gives CAR Group a combination of earnings growth and cash generation while maintaining leverage at a level that leaves some financial flexibility.

International Marketplaces Drive a Larger Share of Growth

The most important feature of CAR Group’s recent growth is the increasing contribution from its offshore businesses.

webmotors in Brazil recorded revenue growth of 30%.

Encar in South Korea increased revenue by 17%.

Trader Interactive in North America recorded 13% revenue growth in constant currency.

By comparison, Australian online advertising revenue increased 9%.

The domestic business therefore continues to grow, but international operations are expanding at faster rates.

This changes the nature of CAR Group’s earnings base.

The company is no longer reliant on Australian automotive advertising alone. Growth is increasingly spread across different economies, vehicle categories and levels of digital-marketplace maturity.

That diversification can reduce dependence on any single market, although it also creates greater currency and execution complexity.

Brazil Offers a Longer Digital Adoption Runway

webmotors provides CAR Group with exposure to one of the largest automotive markets in Latin America.

The opportunity is partly based on increasing digital adoption across the vehicle-buying process.

As dealers and consumers move more activity online, established marketplaces can potentially generate higher revenue through premium listings, dealer products and transaction-related services.

Brazil is at a different stage of digital marketplace development from Australia, meaning there may be more room to increase both online participation and monetisation.

The 30% revenue growth recorded in H1'FY26 illustrates the current pace of expansion.

However, growth also depends on maintaining marketplace liquidity and dealer engagement while navigating economic and currency volatility.

Encar Shows How Marketplaces Can Move Beyond Listings

South Korea’s Encar provides another example of how CAR Group can broaden the economics of a marketplace.

Rather than operating only as a vehicle-advertising platform, Encar has developed services such as guaranteed inspections and home delivery.

These products shift the platform closer to the transaction itself.

That is strategically important because transaction-related services can generate more revenue from each vehicle journey than a simple listing fee.

If customers increasingly use the marketplace not only to find a vehicle but also to inspect, finance, value or arrange delivery, CAR Group can deepen monetisation without requiring the same rate of growth in listing volumes.

Encar’s 17% revenue growth in H1'FY26 suggests that this broader model continues to gain traction.

Trader Interactive Broadens the North American Exposure

Trader Interactive gives CAR Group access to a different range of vehicle categories in North America.

Its marketplaces cover areas including recreational vehicles, trucks, powersports and heavy equipment.

This creates diversification beyond passenger vehicles.

CAR Group also has the opportunity to transfer products and marketplace capabilities developed in other regions across the North American portfolio.

That could include pricing tools, dealer products, premium advertising and transaction-related services.

The strategic advantage lies in using common marketplace expertise across several specialised verticals rather than building each business independently.

If successful, this can create operating leverage and increase revenue per customer across the portfolio.

Australia Remains the Foundation

Despite faster offshore growth, Australia remains a central part of CAR Group’s business.

The local marketplace is more mature, meaning future growth is likely to depend less on large increases in listings and more on yield.

CAR Group can increase yield through premium products, data services, dealer tools and adjacent transaction opportunities.

This is a common pattern in established digital marketplaces.

Once audience and inventory scale are already high, growth increasingly comes from improving monetisation rather than simply adding users.

Australian online advertising revenue increased 9% in H1'FY26, showing that the mature domestic business is still contributing growth even as international operations expand more rapidly.

Dividends and Cash Flow Reflect the Earnings Base

CAR Group declared an interim dividend of 42.5 cents per share, franked at 30%.

That represented a 10% increase from the prior payout.

The dividend provides another indication of the group’s ability to convert earnings into shareholder distributions while continuing to fund international operations.

Operating cash flow of A$263 million also supports this position.

However, the group continues to carry debt following years of offshore acquisitions.

Net debt to EBITDA of 1.8 times remains manageable, but leverage and finance costs are still relevant when assessing future capital allocation.

Management guided to net finance costs of approximately A$60 million to A$64 million.

The balance between debt reduction, dividends and further acquisitions will therefore remain important.

Currency Is a Growing Risk

International diversification brings benefits, but it also increases foreign-exchange exposure.

A rising proportion of earnings is generated in currencies such as Brazilian reais, South Korean won and US dollars.

A stronger Australian dollar can reduce reported revenue and profit even when underlying local-market performance remains unchanged.

This is why constant-currency measures are particularly important when evaluating CAR Group’s international businesses.

Management’s FY26 guidance is also expressed on a constant-currency basis, providing a clearer view of operating performance before translation effects.

Automotive Cyclicality Still Matters

Vehicle markets remain sensitive to economic conditions.

Consumer confidence, interest rates, credit availability and vehicle supply can influence buying activity.

A downturn in a major market could affect dealer advertising budgets and transaction volumes.

CAR Group’s geographic diversification reduces reliance on one economy, but it does not remove cyclicality.

The company also needs to manage the complexity of operating platforms across different regulatory, cultural and competitive environments.

International growth can deliver attractive returns, but it requires continued investment and local execution.

What Matters From Here

The main question is whether international businesses can continue growing faster than the mature Australian platform.

webmotors and Encar are particularly important because both operate in markets where digital adoption and transaction services still have room to expand.

Trader Interactive’s performance will show whether CAR Group can continue applying its marketplace model across specialist vehicle categories in North America.

At group level, investors can monitor adjusted EBITDA, operating cash flow, leverage and finance costs.

FY26 guidance provides a clear benchmark, with proforma revenue growth expected at 12%–14% and adjusted NPAT growth of 9%–13% in constant currency.

The full-year FY26 result due in August 2026 will indicate whether the second half maintained the growth profile established in the first six months.

Conclusion

CAR Group’s H1'FY26 result demonstrates how far the business has moved beyond its Australian carsales origins.

Proforma revenue reached approximately A$626 million, adjusted EBITDA increased to around A$339 million and reported NPAT attributable to owners rose 16% to A$143.3 million.

More importantly, growth was spread across several regions.

webmotors increased revenue by 30%, Encar by 17% and Trader Interactive by 13% in constant currency, while Australian online advertising continued to grow at 9%.

The long-term opportunity lies in extending established marketplace economics into markets where digital adoption and transaction services remain less mature.

The key risks are currency movements, automotive cyclicality, international execution and maintaining returns while managing leverage.

CAR Group’s next phase will depend on whether its global marketplaces can continue compounding while the mature Australian business provides a stable earnings foundation.