Car Group’s half-year results have been described as ‘solid’ by Citi analyst Siraj Ahmed, with particular strength noted in top-line growth, especially within its transaction intelligence (TI) segment. This performance has served to alleviate some investor concerns, according to Ahmed’s assessment. Car Group specialises in digital automotive marketplaces and solutions, connecting buyers and sellers in the automotive industry. The company also provides data and technology solutions to automotive businesses.
The company reported an adjusted net profit of $196 million, marking an 11 per cent increase year-on-year, aligning with projected forecasts. This growth was supported by a 1 per cent rise in revenue, driven by the robust performance of the TI segment which counteracted increased costs. Car Group’s advancements in artificial intelligence (AI) were also highlighted as a significant positive. These include the introduction of conversational search on iOS in Australia, Webmotors’ complete transition to conversational AI, and the establishment of an AI lab in Brazil.
Specifically, TI growth exceeded expectations, demonstrating a 13 per cent increase in constant currency terms. Additionally, Australian dealer revenue experienced a 10 per cent rise, and Latin American margins expanded, with Webmotors’ EBITDA showing a 29 per cent increase. Looking ahead, Car Group has reaffirmed its fiscal year 2026 guidance, projecting revenue growth of 12 to 14 per cent, EBITDA growth of 10 to 13 per cent, and NPAT growth of 9 to 13 per cent.
Citi suggests there is potential for EBITDA growth to reach the upper end of the projected range, which could offset challenges posed by foreign exchange headwinds. Shares in Car Group were last reported to be up by 11.3 per cent following the announcement.
