• Revenue, EBITDA and NPATA grew by 7%, 13% and 12% respectively
• Novated leases under management increased by 24% and active customers grew by 20%
• Continued strong demand for EVs, with 48% of new car orders in H1 2025

Smartgroup Corporation Ltd, a leading provider of salary packaging and novated leasing services in Australia, has reported strong financial and operational results for the first half of 2025. The company's revenue grew by 7% to $159.1 million, while EBITDA increased by 13% to $63.6 million and NPATA (net profit after tax, adjusted to exclude significant non-operating items) grew by 12% to $38.1 million. The company's EBITDA margin improved by 2 percentage points to 40%, and return on equity increased to 30.7%. Smartgroup continued to see strong demand for its services, with the number of active customers growing by 20% to 484,000 and the number of novated leases under management increasing by 24% to 80,000. The company also saw a 6% increase in fleet-managed vehicles to 32,400. Smartgroup's focus on sustainability has also been recognized, with the company ranked in the 96th percentile globally by Sustainalytics for its ESG risk rating and in the 85th percentile in the S&P Global Corporate Sustainability Assessment. The company has made significant progress on its strategic priorities, including the launch of a new digital salary packaging sign-up journey, a 20% improvement in the number of packages per operations FTE, and the implementation of new partnerships and product offerings. Smartgroup's strong balance sheet, with a net debt to EBITDA ratio of 0.3x, provides flexibility to invest in growth initiatives and deliver sustainable distributions to shareholders.

Smartgroup expects to continue its strong financial performance, with a focus on driving scalability and efficiency through its strategic priorities. The company is targeting a mid-40s EBITDA margin by 2027.

Smartgroup remains well-positioned to capitalize on the growing demand for its services, with a focus on expanding its customer base, increasing product uptake, and driving operational efficiencies. The company is confident in its ability to deliver sustainable growth and returns to shareholders.