Why CAR Group Shares Are Suddenly Racing Higher

Strong FY26 results send CAR Group shares sharply higher

CAR Group has delivered a strong full-year result, sending its shares sharply higher as investors responded to stronger earnings, revenue growth and an increased dividend.

The online automotive marketplace reported FY26 revenue of $1.25 billion, up 10% from the previous year, while reported net profit rose 14% to $314 million. The result placed CAR Group among the strongest performers on the ASX 200 on the day, with its shares jumping almost 10%.

Profit and revenue continue to accelerate

CAR Group's underlying performance remained strong across the year. Pro forma EBITDA increased 9% to $700 million, while adjusted NPAT rose 8% to $407 million.

Adjusted earnings per share also increased 8% to 107.6 cents, highlighting continued earnings growth across the business.

The company's result was particularly notable given the elevated short interest in its shares heading into the announcement.

Investors rewarded with a bigger dividend

Shareholders also received a boost through a higher dividend. CAR Group increased its full-year dividend per share by 8% to 86 cents, compared with 80 cents in FY25.

The final dividend increased to 43.5 cents per share, up 5% year-on-year.

The combination of earnings growth and a higher dividend provided investors with another positive signal following the company's latest financial performance.

Strong guidance adds to the optimism

Analysts described the result as broadly in line with expectations, while FY27 guidance was viewed as slightly better than anticipated.

The stronger outlook could provide further support for investor sentiment, particularly after short sellers had increased their positions in CAR Group ahead of the results.

With the company continuing to deliver revenue and earnings growth, investors will now be watching whether the momentum can continue into FY27.

What investors should watch next

CAR Group's ability to maintain earnings growth, deliver on its FY27 guidance and continue increasing shareholder returns will be key factors to watch.

The sharp share price reaction shows that investors were encouraged by the latest numbers. However, the company's valuation and elevated short interest remain important considerations as the market assesses how much of its future growth is already reflected in the share price.

For now, CAR Group has started FY27 with strong momentum, backed by higher revenue, rising profits and a larger dividend.

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