Highlights

  • CAR Group (ASX:CAR) reported FY26 pro forma Revenue growth of 12% on a constant-currency basis to approximately $1.25 billion.
  • Adjusted EBITDA increased 12% to around $700 million, while adjusted NPAT rose approximately 11%.
  • Growth was recorded across Australia, North America, Latin America and Asia operations.
  • FY27 guidance targets revenue growth of 11% to 14% and adjusted EBITDA growth of 10% to 13%.

CAR Group (ASX:CAR) has continued expanding its global digital marketplace platform, delivering broad-based growth across its automotive businesses while investors assess valuation expectations following recent share price weakness.

The operator of carsales.com.au and international automotive marketplaces continues to demonstrate strong operational performance, supported by network effects, digital product Investment and growth across multiple regions.

FY26 Performance

CAR Group delivered pro forma revenue of approximately $1.25 billion in FY26, representing growth of around 12% on a constant-currency basis.

Pro forma adjusted EBITDA increased approximately 12% to around $700 million, while adjusted net profit after tax rose about 11% to approximately $407 million.

Reported net profit was approximately $314 million.

The company also increased Shareholder returns, with the Board lifting the full-year Dividend by approximately 8%.

Global Marketplace Growth

CAR Group recorded growth across all major operating regions during FY26.

The Australian carsales Business remained the core contributor, generating approximately $519 million in revenue, up around 7%.

North American operations through Trader Interactive contributed approximately $327 million, representing growth of around 12%.

The Latin American business, led by Webmotors in Brazil, increased revenue approximately 19% to around $251 million.

Asian operations, including South Korea, grew approximately 15% to around $145 million.

The geographic diversity of Earnings continues to support CAR Group’s strategy of building a global digital automotive marketplace platform.

Digital Strategy

Technology investment and artificial intelligence remain key components of CAR Group’s growth strategy.

The company continues developing digital products aimed at improving customer engagement, marketplace efficiency and monetisation opportunities across its regions.

The combination of strong marketplace positions, data capabilities and product innovation supports CAR Group’s ability to increase value for automotive dealers and consumers.

Leadership Transition

FY26 also marked a Leadership transition for CAR Group.

Long-serving CEO Cameron McIntyre stepped down after nearly two decades with the company, with former CFO William Elliott taking over the leadership role.

The transition introduces a new phase for the business as management focuses on maintaining growth momentum, improving product capability and executing future strategic priorities.

FY27 Outlook

CAR Group expects continued growth during FY27.

The company has guided to:

  • Revenue growth of approximately 11% to 14% on a constant-currency basis.
  • Adjusted EBITDA growth of approximately 10% to 13%.
  • Adjusted net profit growth of approximately 9% to 12%.

The outlook reflects continued expansion across international marketplaces, ongoing digital investment and further monetisation opportunities.

Valuation And Market Focus

Despite strong operational performance, CAR Group’s share price performance has reflected changing investor expectations around premium growth companies.

The company has historically traded on a higher valuation multiple due to its earnings consistency, market leadership and international growth opportunities.

As growth expectations moderate from previous levels, investors are assessing whether the current valuation appropriately reflects future earnings potential.

The discussion is less about the quality of the business and more about the multiple investors are willing to assign to a mature digital marketplace leader.

Key Risks

CAR Group remains exposed to changes in automotive markets, consumer confidence and dealer activity.

A slowdown in vehicle transactions could affect Advertising Demand and marketplace revenue growth.

The company also faces valuation sensitivity, as premium-rated growth companies can experience share price pressure if earnings growth does not exceed expectations.

Currency movements may also influence reported results due to the company’s international operations.

Outlook

CAR Group continues to demonstrate the characteristics of a global digital marketplace leader, with strong positions across multiple automotive markets.

The company’s ability to maintain double-digit growth, expand monetisation and successfully execute under new leadership will be important for future performance.

Investors will continue monitoring FY27 execution, international growth trends, AI-led product development and the balance between earnings growth and valuation expectations.