Smartgroup has reported strong financial results for the first half of 2025, with growth across novated leasing, fleet management, and salary packaging driving a 12% rise in net profit after tax and amortisation (NPATA) to $38.1 million.
Novated Leasing Growth
Novated leasing continues to underpin Smartgroup’s business performance. At 30 June 2025, the company had 80,000 novated leases under management, an increase of 15,400 on the prior corresponding period (up 24%).
New lease vehicle orders grew 19% year-on-year, while settlements increased 8%. Leasing yield remained resilient, dipping only 1% compared to the first half of 2024.
CEO Scott Wharton described the performance as “consistent delivery,” noting that Smartgroup had grown customer numbers to record levels across salary packaging, novated leasing and fleet.
Fleet Management Expansion
Fleet management also recorded steady growth. Smartgroup now manages 32,400 vehicles, up 1,800 from the same time last year (a 6% increase). The company has also expanded a balance-sheet-funded fleet pilot to around 830 vehicles for 50 clients, signalling its intent to deepen its role in this segment.
EV Uptake and FBT Exemption
The standout trend continues to be electric vehicle adoption through novated leasing. In the first half of 2025, EVs accounted for 48% of all new car orders, with battery electric vehicles (BEVs) representing 36% and plug-in hybrid EVs (PHEVs) 12%.
The Federal Government’s Electric Car Discount Policy—which exempts eligible BEVs and low-emission vehicles from fringe benefits tax (FBT)—has been a key driver of this demand. While the exemption ended for PHEVs on 31 March 2025, prompting a surge in demand early in the year, Smartgroup noted that reduced PHEV orders have been offset by increased BEV uptake.
For employers and employees, the FBT exemption has made novated leasing a cost-effective way to adopt EVs, boosting demand and, in turn, driving profitability for Smartgroup and other providers in the sector. With EVs now representing nearly half of new car lease orders, the policy continues to reshape fleet purchasing behaviour.
Financial Performance
Revenue rose 7% to $159.1 million, supported by strong leasing demand and new client wins. Operating EBITDA increased 13% to $63.6 million, with an improved margin of 40%. Operating cash flow was particularly strong, up 43% to $52.5 million, equating to 138% of NPATA.
The Board declared an interim dividend of 19.5 cents per share, up 11% on the prior year.
Outlook
Smartgroup expects demand for novated leasing to remain strong, with July vehicle orders and settlements in line with the previous year. With EV availability expanding and average delivery times stabilising at around 39 days, the company is well positioned to continue capitalising on demand.
Looking further ahead, Smartgroup has set a target of achieving mid-40s EBITDA margin by 2027, underpinned by digital investment, efficiency initiatives, and its leadership position in the novated leasing market.
- From innovation to collaboration: why Intellitrac is backing the IPWEA 2026 Fleet Conference
The IPWEA 2026 Fleet Conference, to be held in Melbourne from 23–25 March 2026, will once again bring together Fleet Managers, Fleet Coordinators, Procurement Managers and local government leaders to share practical insights on managing increasingly complex fleets. One of the Gold Sponsors of the 2026 event is Intellitrac, a long-standing Australian fleet technology provider whose story mirrors many of - What Fleet Managers should expect in 2026: maturity, money, and making data countAs fleets head into 2026, the message from industry leaders is consistent: the tools exist, but outcomes will depend on how well organisations integrate technology, funding decisions, and people into a coherent fleet strategy. Insights from Uniqco, Smartfleet, and Geotab point to a year where maturity — not technology availability — will be the main differentiator between fleets that
- From Idea to Icon: How the Ford Ranger Super Duty Was Years in the MakingWhen a new vehicle launches, it can feel like it appeared overnight. In reality, the Ford Ranger Super Duty is the result of years of internal debate, engineering work, testing and fleet engagement — a development timeline that stretches back to 2018, long before the phrase “Super Duty Ranger” was ever public. What makes this story particularly relevant
- January new car sales steady, but rental surge raises fleet questionsAustralia’s new vehicle market opened 2026 on steady ground, with 87,092 new vehicles sold in January, a marginal increase of 0.3 per cent compared with the same month last year, according to the latest VFACTS data released by the Federal Chamber of Automotive Industries (FCAI). FCAI chief executive Tony Weber described the result as a stable start to
- Kia EV3 Air review: a compact EV that makes sense for fleetsThe Kia EV3 Air might sit at the smaller end of the SUV spectrum, but it’s a good example of how “small” has grown in 2026. In this base model, the EV3 Air presents as a genuinely practical option for fleets, and organisations looking to reduce emissions without compromising usability. It’s well suited to a
