Key Highlights

  • Pro forma Revenue increased 12% in constant currency to AUD 1.25bn.
  • Adjusted EBITDA reached AUD 700mn with a reported Margin of 56%.
  • Adjusted net profit after tax rose to AUD 407mn.
  • FY27 guidance targets double-digit constant-currency revenue and EBITDA growth.

CAR Group closed FY26 with each geographic segment contributing to constant-currency growth. CAR Group (ASX:CAR) expanded revenue and adjusted EBITDA across its portfolio of online vehicle marketplaces, while maintaining a 56% adjusted EBITDA margin. Its FY27 ranges now establish measurable benchmarks for regional growth, finance costs and the conversion of product engagement into earnings.

Company Business

CAR Group operates digital vehicle marketplaces across Australia, South Korea, North America, Chile and Brazil. Its businesses connect consumers, dealers and advertisers through vehicle listings, data, media and finance-related services. The portfolio includes carsales, Encar, Trader Interactive, chileautos and a majority interest in webmotors, giving the group exposure to several vehicle markets and currencies.

Sector Context

CAR Group released its FY26 result on 10 August 2026. Proforma revenue of AUD 1,253mn was up 12% in constant currency, adjusted EBITDA of AUD 700mn also rose 12%, and adjusted net profit after tax reached AUD 407mn, an 11% constant currency increase and 8% in Australian dollar terms. Adjusted Earnings per share were 107.6 cents.

A final Dividend of 43.5 cents per share, franked at 30%, took the FY26 total to 86.0 cents, up 8% on the prior year. Managing Director and Chief Executive William Elliott described it as another higher year across the global portfolio. Australia remained the earnings anchor, contributing AUD 519mn of revenue and AUD 345mn of EBITDA at a 66% margin, with revenue up 7% and EBITDA up 8%.

North America, through Trader Interactive, generated AUD 327mn of revenue and AUD 197mn of EBITDA, growing 12% in constant currency at a 60% margin. Latin America produced revenue of AUD 251mn and EBITDA of AUD 96mn, with revenue up 19% and EBITDA up 23% in constant currency. Asia delivered AUD 145mn of revenue and AUD 65mn of EBITDA, up 15% and 14% respectively.

Leverage was reported at 1.7 times net Debt to EBITDA. The group also detailed CG Engine, its proprietary artificial intelligence infrastructure, reporting a 26% uplift in session-to-lead conversion at carsales in Australia, webmotors users four times more likely to submit a lead, and 20% higher engagement at Encar in South Korea.

Risks to Consider

Classifieds revenue is tied to dealer health and vehicle supply, both of which cycle. A large share of earnings now sits offshore, so translation effects can meaningfully compress reported growth, as the flagged 2% FY27 headwind illustrates. Competition is persistent in every market, regulatory scrutiny of dominant online marketplaces is a live theme, and technology Investment must keep pace without eroding the margin that underpins the valuation.

What to Watch Next

FY27 guidance is specific: constant currency revenue growth of 11-14%, adjusted EBITDA growth of 10-13% and adjusted NPAT growth of 9-12%, with net finance costs of AUD 66-72mn and an effective tax rate of 20-21%. Management flagged an expected currency headwind of around 2%. Regionally, the company anticipates double-digit revenue growth in North America, Latin America and Asia, with high single-digit growth in Australia.

Progress on AI monetisation and the used-vehicle cycle in each market could remain in focus. FY26 gave CAR Group a clean set of numbers — AUD 1,253mn of revenue, AUD 700mn of adjusted EBITDA and 86.0 cents of dividends — and an FY27 guidance range that is unusually explicit for the sector. What could drive the next move is fairly identifiable: delivery against that guidance, the trajectory of offshore growth, and whether the AI tools now embedded in the marketplaces translate into measurable revenue rather than engagement alone.