Company Reports

Smartgroup's underlying net profit after tax adjusted rose 11% in the first half of 2026 versus a year earlier. The EBITDA margin grew 1 percentage point to 41%. However, shares fell 13% on the results release.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions as the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise low- to middle-class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

We recently cut our fair value estimates for EML Payments and GQG Partners after we self-identified a valuation error in our treatment of share-based compensation. We've now reviewed our diversified financials coverage for the same issue and identified 10 affected companies.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions as the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise low- to middle-class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup's first-quarter trading update showed volume growth, customer penetration gains, and novated leasing yield compression. Separately, the federal government will taper the electric vehicle, or EV, fringe benefits tax exemption to a 25% discount from April 2029. Shares are up 4%.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup delivered an 11% increase in NPATA—NPAT excluding nonoperating items such as amortization of acquired intangibles—to AUD 80 million in calendar 2025. Revenue growth of 8% outpaced cost growth of 5%, resulting in a 2% expansion in EBITDA margins to 41%.

Smartgroup's shareholder returns are slightly trailing the ASX 200 so far in 2025. Shares were outperforming the index until the removal from the S&P/ASX 200 index in early September 2025.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup's first-half 2025 underlying net profit after tax, excluding significant nonoperating items, and EBITDA grew by 12% and 13%, respectively, from the prior half.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

Smartgroup saw growth in average monthly revenue, novated leasing settlements, and orders in the first quarter of 2025 compared with the same quarter last year. Novated leasing yields were steady relative to the second half of 2024.

Smartgroup's underlying 2024 NPATA grew 15% to AUD 72 million. EBITDA increased 18% to around AUD 119 million. EBITDA margin was 39%, slightly below the prior year.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

No-moat Smartgroup is likely experiencing similar operational trends as peer McMillan Shakespeare noted at its annual general meeting in late October. Specifically, continued growth in novated leases, driven by cost-of-living pressures that encourage vehicle financing through these arrangements. Additionally, the fringe benefits tax exemption for electric vehicles supports further EV adoption through novated leases. Nonetheless, we expect future novated leasing yields will decline from 2024 levels due to increased vehicle supply, including EVs. This will likely lead to price reductions and heightened competition from peers like McMillan.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.

No-moat Smartgroup’s first-half 2024 results slightly exceeded expectations, with underlying net profit after tax and acquisition amortization and EBITDA growing by 16% and 20%, respectively, from the previous corresponding period. The compression in EBITDA margins to 38% from 40% in the PCP was anticipated, as it includes investment to service a large contract win from McMillan Shakespeare, which commenced June 30, 2024. Excluding these investments, EBITDA margins would have been flat. We maintain our fair value estimate of AUD 8.30 per share, with shares close to fairly valued at current prices.

Smartgroup provides employee management services, with salary packaging, novated leasing, fleet management, and software solutions the key offerings. Together with McMillan Shakespeare, it is an oligopoly in Australia’s salary packaging market, and has a sizable presence in the novated leasing market. Entities in the government, healthcare, not-for-profit, and education industries make up 97% of Smartgroup’s client base. These industries are defensive, typically comprise of low to middle class workers, and have favorable fringe benefits tax exemptions. They are regular users of Smartgroup’s services, and underpin the firm's steady revenue.