Highlights

  • H1 2026 Revenue rose 13% to $179.5m as novated leasing activity expanded.
  • Electric vehicles represented 68% of new novated Lease orders during the half.
  • Salary packaging and managed fleet customer numbers increased.
  • Digital service changes and automotive partnerships remained operational priorities.
  • The company declared a fully franked Interim Dividend of 21.5 cents per share.

Smartgroup Corporation Ltd (ASX:SIQ) provides salary packaging, novated leasing and fleet management services to Australian employers and employees. Its first-half 2026 results reflect growth across these activities, alongside greater Demand for battery electric vehicles and continued Investment in digital customer services.

Revenue, Earnings and Cash Flow in H1 2026

For the six months ended 30 June 2026, Smartgroup Corporation Ltd (ASX:SIQ) recorded revenue of $179.5m, an increase of 13%. Operating EBITDA reached $73.8m, up 16%, while the operating EBITDA Margin was 41%, one percentage point higher. Net profit after tax before Amortisation (NPATA) was $42.4m, increasing 11%.

Operating expenses rose 12% to $100.6m as the Business invested in technology and growth initiatives. Operating Cash Flow totalled $50.8m, equivalent to 120% of NPATA. Net Debt at 30 June 2026 stood at $35.4m, or 0.2 times EBITDA. These measures provide context for the company’s investment and Capital management activities.

Electric Vehicle Leasing Reshapes Order Mix

Novated leasing was an important activity driver for Smartgroup Corporation Ltd (ASX:SIQ). New lease vehicle orders increased 34% during H1 2026, while total novated leasing settlements rose 17%. Battery electric vehicles accounted for 68% of new orders, compared with 5% for plug-in hybrids and 27% for internal combustion engine vehicles. New battery electric vehicle orders increased 162%.

The Australian Government confirmed its continued support for the Electric Car Discount in May 2026. Eligibility and tax treatment remain relevant to the cost of novated leasing for individual employees. Smartgroup also widened its automotive distribution network, including dealership partnerships designed to make leasing quotations available during vehicle purchases.

Customer Reach and Digital Operations

At 30 June 2026, Smartgroup Corporation Ltd (ASX:SIQ) reported 518,000 active salary packaging customers, an increase of 34,000, and 91,600 novated leasing customers, an increase of 11,600. Its fleet business managed 36,200 vehicles, up 12%, supported partly by external funding arrangements.

The company launched a mobile app supporting salary packaging and novated leasing self-service, continued improvements to its car leasing portal and reported a 19% increase in customers per operations employee. These initiatives relate to customer access and administrative efficiency rather than a separate change in the company’s core services.

Funding Priorities and Operational Risks

Smartgroup Corporation Ltd (ASX:SIQ) declared a fully franked interim dividend of 21.5 cents per share for H1 2026, an increase of 10%. The company expected calendar-year 2026 Capital Expenditure of $13–15m and stated a target for EBITDA margin in the mid-40% range during 2027, subject to market conditions.

The operating environment includes changes to vehicle tax settings, customer purchasing demand, financing costs and employer contract renewals. Increased investment in digital infrastructure and distribution also creates execution and cost-management considerations.

Key Insights

Smartgroup Corporation Ltd (ASX:SIQ) reported higher first-half revenue, earnings and novated leasing activity in 2026, with electric vehicles contributing a substantial share of new orders. Customer growth across salary packaging and fleet, together with digital service investment, indicates how the company is developing its employee benefits and mobility operations. Policy settings and consumer demand remain relevant variables.