CAR +9.93% delivered a clean/inline 1H26 result, reaffirming guidance and easing concerns after the recent tech sell-off. Earnings growth was solid, margins held up, and the dividend stepped higher. A meet was enough given the weakness leading into the result.
- Adj. NPAT: A$196.8m (+11% y/y) v A$198m consensus
- Adj. EBITDA: A$339m (+12% y/y) v A$341m consensus
- Revenue: A$625.8m (+8% y/y) v A$621m consensus
- Interim dividend: 42.5c, fully franked (+10% y/y)
FY26 Guidance for earnings growth of 9-13% was inline with current consensus (+11%), while management spoke at length about AI, launching a global AI hub in Brazil focused on agentic tools to enhance search, negotiation and transaction efficiency.
Importantly, and this is probably what got the market excited; AI spend is being absorbed within existing development budgets, leveraging CAR’s proprietary data.
Overall, a solid result from CAR and a relief rally in the stock against a backdrop of broader strength.
MM is neutral CAR ~$27.00
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