Key Highlights

• McMillan Shakespeare reported FY26 group Revenue of $602.1 million (+6.8%) with EBITDA rising 14.1% to $180.7 million and operating margins expanding 250 basis points to 41.5%

• Electric vehicle sales through novated leasing surged 113%, with battery electric vehicles accounting for 57% of all new novated Lease sales in FY26, up from 31% in FY25

• The company's digital Brand Oly delivered 77% growth in novated sales and 185% growth in new employer registrations, validating the SME market expansion strategy

Shares of McMillan Shakespeare Ltd(ASX:MMS) were trading at A$19.56 during the Trading session on 05 November 2026, up 1.24%, in a session where the S&P/ASX 200 (XJO) gained 2.61% (+230.60 points) to 9,065.10 and the S&P/ASX 200 Industrials index (XNJ) rose 2.21% (+182.50 points) to 8,422.80. Overnight Wall Street gains after Democrats posted a decisive victory in the U.S. midterm elections provided a positive backdrop for global Equity markets. McMillan Shakespeare is one of Australia's leading employee benefits and fleet management companies, providing novated leasing, salary packaging and plan management services.

Record Earnings and Margin Expansion

McMillan Shakespeare released its FY26 full-year results on 28 August 2026, reporting group revenue of $602.1 million, up 6.8% on the prior year. EBITDA increased 14.1% to $180.7 million, with operating margins expanding 250 basis points to 41.5%, reflecting the benefits of technology-enabled productivity improvements. Statutory net profit after tax from continuing operations rose 11.4% to $106.7 million, while underlying NPATA (UNPATA) grew 13.8% to $107.9 million. Underlying Earnings Per Share increased 13.8% to $1.55.

The Group Remuneration Services (GRS) segment was the primary earnings driver, with UNPATA rising 24.9% to $82.5 million. Customer growth was recorded across all segments, with novated leases under management increasing 13.5% and salary packaging customers up 7.1%.

Electric Vehicle Adoption Accelerates

A notable feature of the FY26 result was the acceleration in electric vehicle uptake through the novated leasing channel. New battery electric vehicle sales grew 113% year-on-year, with EVs representing 57% of all new novated lease sales in FY26, up from 31% in FY25. This shift was supported by the Australian Government's certainty on the fringe benefit tax exemption for eligible electric vehicles.

Group novated lease sales rose 8.4% overall, while Onboard Finance receivables grew 16.6% to $587 million. The company's digital-first platform Oly, targeting the small and medium enterprise (SME) market, was a standout performer, delivering 77% growth in novated sales and 185% growth in new employer registrations.

Technology and Productivity Gains

Investments in automation, artificial intelligence and digital self-service platforms continued to deliver operational efficiencies. CEO Rob De Luca noted that these technology investments contributed directly to the 250 basis point improvement in operating margins. Customer-facing platforms MyMaxxia, MyRemServ and Oly achieved consistently high adoption levels and customer ratings, with Maxxia winning the ProductReview Award for Novated Leasing and Salary Packaging for the third consecutive year.

About the Company

McMillan Shakespeare operates through three principal segments: Group Remuneration Services (novated leasing and salary packaging), Asset Management Services (fleet management) and Plan and Support Services (NDIS plan management). The company maintains a Balance Sheet with debt-to-EBITDA of 0.4x and delivered a return on Capital employed (ROCE) of 62.1% in FY26. Shareholders received fully franked dividends of $1.32 per share, representing a Yield of 6.6%.

Sector Context

The broader industrials sector on the ASX advanced on 05 November, with the XNJ rising 2.21%. Employee benefits and fleet management businesses like MMS sit at the intersection of several secular tailwinds, including EV adoption, cost-of-living pressures driving salary packaging demand, and the ongoing digital transformation of workplace services. The continued certainty around FBT exemptions for EVs provides a supportive policy environment.

Risks to Consider

Key risks include potential regulatory changes to the EV fringe benefit tax exemption, which has been a significant driver of novated lease sales growth. The company flagged that remarketing income in FY27 may be affected by elevated Demand for EVs and softer demand for internal combustion engine (ICE) used vehicles. Emerging NDIS reforms also present uncertainty for the Plan and Support Services segment, which is the second-largest plan management provider in Australia.

Catalysts on Watch

FY27 indicators to monitor include July 2026 novated sales momentum (already up 8%), the continued shift towards EVs in the fleet, the scaling of Oly in the SME market, and how productivity gains translate into further margin expansion. The interplay between cost-of-living pressures and consumer demand for salary packaging also bears watching.

The Takeaway

McMillan Shakespeare delivered a record FY26 on the back of EV-driven novated lease growth, expanding margins and a digital-first customer Acquisition strategy. With a debt-light balance sheet, high returns on capital and multiple growth levers, the company enters FY27 with momentum across its key segments.