Shares of CAR Group Limited leapt more than 10% in Monday's session following the release of robust half-year financial results and a reaffirmed growth outlook.
The online automotive marketplace reported a net profit after tax of A$143 million for the six months ended December 31. Revenue climbed to A$626 million, an 8% increase. The company's board declared an interim dividend of 42.5 cents per share, representing a 10% rise from the prior corresponding period.
Growth Trajectory Maintained
Management reiterated its fiscal 2026 guidance, projecting proforma revenue growth of 12% to 14% on a constant-currency basis. Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for the period reached A$339 million, with cash conversion from EBITDA to operating cash flow reported at 95%.
Chief Executive William Elliott highlighted ongoing investments, particularly in artificial intelligence, as a key strategic focus. The company is establishing a dedicated AI hub in Brazil to integrate the technology across its platforms and operations.
Market Reaction and Context
The stock's significant gain outpaced a broader market advance, with the S&P/ASX 200 index closing up 1.85%. The positive investor response underscores the market's focus on confirmed guidance during the current earnings season.
The company noted that its targets remain subject to macroeconomic conditions, including customer demand, inflation, and foreign exchange movements. The shares are scheduled to trade ex-dividend on March 13, with payment due on April 13.