• Record Q1 2026 performance with 8% revenue growth, 22% increase in novated leasing orders
• Continued strong demand for EVs, with 59% of new vehicle orders in Q1 2026
• Launched new customer app and progressed AI/automation initiatives to enhance customer experience

Smartgroup Corporation Ltd, a leading employee services and fleet solutions provider, provided a business update and presentation for the Macquarie Australia Conference. The company reported a strong Q1 2026 performance, with average monthly revenue increasing 8% compared to the prior corresponding period (pcp), and average monthly novated leasing orders (excluding refinanced) increasing 22% vs pcp. Smartgroup also saw a 7% increase in average monthly total novated leasing settlements, including refinanced vehicles, compared to pcp. The company highlighted continued strong demand for electric vehicles (EVs), with 59% of new vehicle orders in Q1 2026 being BEVs. Smartgroup also noted the positive impact of the government's Electric Car Discount Policy, which has enabled its customers, many of whom are nurses, teachers and not-for-profit workers, to transition to EVs and reduce living expenses. The company provided an update on its strategic initiatives, including the launch of its new mobile app to enhance customer engagement and experience, as well as progress on its AI and automation programs to improve service delivery and efficiency. Looking ahead, Smartgroup is targeting mid-40s EBITDA margins during 2027, based on current market conditions, and sees further opportunities to elevate business performance after 2027 with sustained investment.

Based on current market conditions, Smartgroup is targeting EBITDA margins in the mid-40s during 2027.

Looking ahead, operating conditions remain favourable, underpinned by positive demand dynamics across Smartgroup's key markets. The company remains focused on disciplined execution, supported by an increasingly scalable capital-light platform, and continues to invest in technology and capability to support customers and drive sustainable growth. Smartgroup is mindful of broader macroeconomic factors but believes its business model and strategic investments provide resilience and flexibility.