Half Year Results 2025 Media Release
| Stock | Smartgroup Corporation Ltd (SIQ.ASX) |
|---|---|
| Release Time | 28 Aug 2025, 8:19 a.m. |
| Price Sensitive | Yes |
Smartgroup delivers strong 12% NPATA growth
- Revenue up 7% to $159.1m
- Operating EBITDA up 13% to $63.6m
- NPATA up 12% to $38.1m
- Interim dividend increased 11% to 19.5 cps
Smartgroup Corporation Ltd (ASX: SIQ), a leading employee services and fleet solutions provider, has reported its half-year results for the six months ended 30 June 2025 (H1 2025). The company achieved strong financial momentum across all key metrics, with revenue of $159.1m, up 7% on the prior corresponding period (pcp), and operating EBITDA of $63.6m, up 13% on pcp. NPATA, a key measure of profitability, rose 12% to $38.1m. Smartgroup's return on equity reached 30.7%, an increase of 1.9 percentage points, reflecting the company's capital-light business model and robust cash flow conversion. The company continued to grow customer numbers to record levels across salary packaging, novated leasing, and fleet, highlighting the strength of its offering and the trust it has built with clients. Smartgroup's strategic priorities announced in February 2024 are progressing to plan, with the company enhancing digital marketing and lead generation activities and launching a new digital salary packaging sign-up journey to improve customer onboarding and deliver scalable growth. The company maintains a flexible balance sheet with a modest net debt level of $41.6m as at 30 June 2025, being 0.3x EBITDA, enabling the Board to declare an interim fully franked dividend of 19.5 cents per share, an increase of 11% compared to the prior period.
Based on current market conditions, Smartgroup is targeting a mid-forties EBITDA margin during 2027. With sustained investment, including automation and agentic capabilities, the company sees continued opportunities to further elevate business performance beyond 2027.
Demand for Smartgroup's products and services remains strong, driven by solid operating momentum and ongoing enhancements in digital marketing and customer engagement. The company is executing its Strategic Priorities to deliver profitable growth and improve efficiency while strengthening its market position.