CAR Group Limited (ASX:CAR), the global automotive classifieds and marketplace group, delivered what it called an excellent FY26 result on 10 August 2026, with proforma Revenue of $1,253 million (up 12% in constant currency), proforma EBITDA of $700 million (up 12% in constant currency) and 100% EBITDA-to-operating-cash-flow conversion. The result reflects the sustained momentum of its diversified global portfolio, with carsales.com.au in Australia, Trader Interactive in the US, Encar in South Korea and international operations all contributing to growth.

About the Company

CAR Group Limited (ASX:CAR) operates Australia's leading automotive classifieds website (carsales.com.au) alongside a growing portfolio of international automotive marketplace businesses. The company holds majority stakes in Trader Interactive (US commercial vehicle marketplace), Encar (South Korea's leading automotive platform), and has interests in automotive marketplaces across Latin America and Southeast Asia. CAR Group's Business model generates revenue from dealer subscriptions, private listings, display advertising, lead generation and Data Analytics services — a mix that is heavily recurring and leveraged to the health of automotive retail markets in the countries it operates in.

Recent Development

CAR Group released its FY26 annual results on 10 August 2026. Proforma revenue — which normalises for the exit of the Australian Tyres business and non-recurring items — was $1,253 million, up 10% in AUD or 12% in constant currency. Proforma EBITDA was $700 million, up 12% in constant currency. Reported revenue was $1,253 million, up 6% in AUD. Reported EBITDA was $667 million, up 8% in AUD. Reported NPAT was $314 million, up 14% in AUD. EBITDA-to-operating cash flow conversion was 100%. The Board declared a 30% franked final Dividend of 43.5 cents per share, bringing total FY26 dividends to 86.0 cents per share, up 8%. FY27 guidance reflects confidence in continued growth, underpinned by strong execution, portfolio diversification, AI-led product development and disciplined Capital allocation.

Sector Context

Online automotive classified platforms occupy a structural sweet spot in the digital economy: they are marketplace businesses where network effects create winner-takes-most dynamics in each country of operation, margins are high relative to capital intensity, and the underlying Demand for vehicles provides durable category relevance. CAR Group's Australian business (carsales.com.au) has consistently grown revenue and Earnings through multiple automotive market cycles, demonstrating the resilience of the platform model. Internationally, its Trader Interactive (US) and Encar (South Korea) businesses give it a diversified exposure to large, developed automotive markets with similar marketplace economics.

Risks and Uncertainty

CAR Group's reported AUD results are affected by Exchange Rate movements, particularly the AUD/USD (for Trader Interactive) and AUD/KRW (for Encar) rates. Revenue growth in constant currency exceeds reported AUD growth when these currencies weaken against the AUD, as was the case in FY26. A significant new vehicle Supply disruption or automotive retail downturn could reduce dealer Advertising budgets and listing volumes. Competition from OEM-direct digital sales channels and large technology platforms entering the automotive classifieds space is an ongoing competitive consideration.

Catalysts Investors Can Watch

The trajectory of Trader Interactive in the US — which has been developing its platform and monetisation capabilities — will be a key value creation story in FY27. Any investor day or detailed guidance update that breaks down expected growth rates by geography will help investors assess where the most significant incremental earnings growth is coming from. AI-related product innovations (referenced in management commentary) and the extent to which they drive dealer value and willingness to pay more for platform access will be medium-term growth levers.