The CAR Group Limited (ASX: CAR) share price is down more than 1% after giving an update for investors.
CAR Group owns Carsales.com.au as well as Encar in South Korea, Trader Interactive in the US and Chileautos in Chile. It’s also the majority shareholder of Webmotors in Brazil.
CEO update
The company announced that Cameron McIntyre is stepping down as the Managing Director and CEO of CAR Group after 18 years with the business, including over nine years as the company’s leader.
During his time, the company has become five times larger and is one of the five largest businesses on the ASX.
The board of CAR Group has appointed William Elliott to become the new CEO and Managing Director. He’s currently the chief financial officer (CFO) of the business and will start on 15 August 2025.
Elliott has been with the CAR Group business for 10 years, including being the CFO for over five years as well as leading multiple commercial business units. He will be paid $1.6 million per year (including superannuation) and will also have short-term and long-term incentives.
FY25 update
The business provided estimates for its 2025 financial year numbers because the company has already done a lot of work on its report.
It’s currently expecting:
- Proforma revenue growth of 12% to between $1.142 billion to $1.146 billion
- Proforma EBITDA (EBITDA explained) growth of between 11% to 12% to $638 million to $642 million
- Adjusted net profit after tax (NPAT) growth of between 11% to 12% to between $376 million to $380 million
Those above numbers are meant to reflect the true underlying performance of the business, in a way that the statutory reported figures may not capture.
It provided estimates for the following statutory numbers:
- Reported revenue growth of between 7% to 8% to $1.181 billion to $1.185 billion
- Reported EBITDA growth of between 9% to 10% to between $618 million to $622 million
- Reported net profit growth of between 9% to 11% to between $273 million to $277 million
CAR Group said the above numbers reflect “excellent revenue and earnings growth in all key markets”.
It also said it enters the new financial year with good momentum. The company said it’s “well positioned to deliver excellent results in FY26”.
Final thoughts on the CAR Group share price
The business appears to have chosen the right person to deliver continuity of success for the company. I think the business has a good future, though the company may be more reliant on international growth to continue its long-term success.
I think there are other ASX growth shares that could make better buys.
