Key Highlights

• Reported net profit after tax (NPAT) was $314 million, up 14%.

• In Australia, Revenue was up 7%, helped by carsales, product innovation and the launch of Nexgate, a new dealer platform.

• For FY27, the company guided to revenue growth of 11% to 14% and adjusted EBITDA growth of 10% to 13%, in constant currency.

• Earnings before interest, tax, Depreciation and Amortisation (EBITDA) were $667 million, up 8%.

How does a dominant domestic marketplace keep growing once it has captured most of its home market? CAR Group (ASX:CAR)'s FY26 results, reported on 10 August 2026, showed revenue and profit growth across every region and set FY27 guidance that leans heavily on North America, Latin America and Asia. The result matters because it shows how much of the group's growth now depends on businesses that investors in the Australian listing may not follow closely.

The FY26 result

Reported net profit after tax (NPAT) was $314 million, up 14%. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $667 million, up 8%. The company reported EBITDA-to-operating-cash-flow conversion of 100%, which indicates that profit is being converted into cash.

The gap between reported growth of 6% and constant-currency growth of 12% matters. A large share of the group's revenue is earned in foreign currencies, and when the Australian dollar strengthens against them, reported figures are lower even if local performance is encouraging. Investors should therefore keep both measures in mind. Currency translation is outside management's control and can reverse.

A total Dividend of 86.0 cents per share was declared, up 8%, including a final dividend of 43.5 cents that is 30% franked.

How the Business earns revenue

CAR Group operates online marketplaces where dealers and private sellers pay to list vehicles and related products. Revenue is mostly subscription and listing fees from dealers, with additional income from advertising, data and software services, and financial and other services. Its Australian business, led by carsales, has high audience share and encouraging pricing power; the group's growth strategy is to extend the same model to other markets.

The regional picture from the FY26 result, in constant currency, shows how that is working. In Australia, revenue was up 7%, helped by carsales, product innovation and the launch of Nexgate, a new dealer platform. In North America, revenue and EBITDA each rose 12%, aided by premium dealer products and acquisitions. In Latin America, revenue rose 19%, driven by audience expansion and service improvements at Webmotors. In Asia, revenue rose 15%.

FY27 guidance

For FY27, the company guided to revenue growth of 11% to 14% and adjusted EBITDA growth of 10% to 13%, in constant currency. It expects high single-digit revenue growth in Australia and double-digit growth in North America, Latin America and Asia. Guidance is a management forecast and can change, and the constant-currency basis means reported growth may differ.

The implication is clear: Australia is the largest and most profitable segment but is expected to grow more slowly than the group, so the group's growth rate depends on the overseas businesses delivering. That is a source of both opportunity and risk. International markets offer larger addressable audiences, but they also bring currency volatility, local competition, regulatory differences and the risk of Acquisition integration.

Competitive position

In Australia, carsales competes with other automotive classifieds platforms, manufacturer and dealer websites and general classifieds and social platforms. Marketplaces tend to benefit from network effects: more buyers attract more sellers and vice versa, which makes a leading position hard to displace. That is the core of the Investment case, but it is not unassailable. Competitors can target segments such as private sales or lower fees, and technology change, including artificial intelligence-driven search and vehicle discovery, could alter how buyers find listings.

Risks to monitor

The main risks are the pace of Australian growth as penetration matures, competition and technology change, currency movements, and integration and performance of overseas businesses. Regulatory scrutiny of digital marketplaces and weaker vehicle transaction volumes are further factors.

Capital structure also matters.

What to watch next

The half-year result for the period to 31 December 2026 will show whether the FY27 guidance is on track and whether the Australian business is holding high single-digit growth. Other items to watch include commentary at the annual general meeting, the adoption of Nexgate, Margin development in North America and any further acquisitions.

Summary

CAR Group's FY26 result shows a profitable, cash-generative marketplace group growing in every region. The main question is not whether the Australian business is encouraging, but how much of the next phase of growth will come from overseas, and how well it holds against competition and technology change. The guidance for FY27 sets a clear benchmark against which progress can be measured.