CAR Group shares (ASX: CAR) were one of the leading lights on the ASX 200 to start the week, jumping nearly 10% on Monday after delivering solid full-year results, with a double-digit growth guide to boot.
The CAR Group share price rounded out Monday 9.92% higher at A$29.70, reclaiming most of the 2026 decline in a single session. The sharp rally leaves holders down 3.79% year-to-date, marking a significant sentiment shift for a stock that had been under pressure amid broader concerns about consumer discretionary spending and automotive market conditions.
Latest Fundamentals Impress
CAR Group reported adjusted revenue of $1.25 billion for the full year, up 12% year-on-year, narrowly missing consensus estimates of $1.27 billion by approximately 2%. Despite the modest revenue shortfall, the company demonstrated disciplined cost control, with adjusted EBITDA climbing 12% to $700 million, essentially in line with analyst expectations of $701.2 million.
Adjusted net profit after tax rose 11% to $407.2 million, slightly exceeding the $405.5 million consensus estimate. The alignment of revenue, EBITDA and profit growth rates signals that CAR Group maintained stable operating margins throughout the year, avoiding the margin compression that has plagued some digital marketplace operators.
Management highlighted that the company achieved double-digit constant-currency growth across its entire portfolio, validating the strategic diversification away from its Australian core.
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The board declared a final dividend of 43.5 cents per share, up 5% year-on-year and 30% franked, with a record date of 14 September and payment scheduled for 12 October. The full-year dividend totalled 86 cents per share, representing an 8% increase on the prior year, though modestly below Morgans’ estimate of 87.5 cents per share.
FY27 Guidance Supports The Move
Forward guidance is often more important than earnings itself, and this once again proved the case. Management guided to revenue growth of 11-14%, adjusted EBITDA growth of 10-13%, and adjusted NPAT growth of 9-12% for the 2027 financial year.
The tight alignment between revenue, EBITDA and profit growth guidance is particularly noteworthy, indicating management does not anticipate significant operating leverage headwinds or tailwinds in the year ahead. For a business already operating at scale with mature Australian operations, the ability to guide to low-teens revenue growth and high-single to low-double-digit earnings growth represents a compelling proposition in the current market environment.
What Next?
A solid rebound for CAR Group shares will have given holders plenty to smile about on the day, yet the 1 year negative 20% read on the stock is indicative of the work that lay ahead. A retest of the A$30 level intraday is a positive start, yet with the stock now breaking out of this six month range, the burden of proof shifts to management to deliver.
