The CAR Group Limited (ASX: CAR) share price is up after reporting growth in its FY25 result.
CAR Group is the owner of Carsales.com.au as well as Encar in South Korea, Trader Interactive in the US, Chileautos in Chile and it’s the majority shareholder of Webmotors.
CAR Group FY25 result
The company said it delivered “excellent” revenue and earnings growth in all key markets.
Let’s take a look at its performance over the 12 months to 30 June 2025:
- Revenue grew by 8% to $1.18 billion
- EBITDA (EBITDA explained) increased by 9% to $620 million
- Reported net profit after tax (NPAT) grew 10% to $275 million
- Adjusted net profit rose 10% to $377 million
- Final dividend per share hiked by 8% to $0.415
Now we’ll dig into what drove the performance of the business in FY25.
Australia
For Australia, CAR Group said Carsales maintained its market leadership in FY25.
Dealer revenue rose 10% thanks to growth in lead volumes, yield increases and higher depth product penetration.
Private revenue grew 5% with growth from value-based pricing and growth in the instant offer.
Media revenue grew 10% thanks to product and advertiser diversification and a competitive new car market.
North America
Turning to North America, revenue rose 10% and adjusted EBITDA increased 11% on a constant currency basis.
The company said revenue and earnings growth demonstrates the strength of the North American business model in more challenging market conditions. Media, depth and data products were key growth drivers.
Latin America
The company was very pleased with “excellent financial performance” here, with revenue growth of 26% and adjusted EBITDA rose 28% on a constant currency basis.
The division saw audience growth and an extension in Webmotors’ market leadership position.
Asia
Finally, Asia experienced “excellent” revenue growth of 16% and adjusted EBITDA growth of 11% on a constant currency basis.
Key drivers were premium product penetration, yield increases and continued increase in home delivery transactions.
Outlook for the CAR Group share price
The company is expecting (proforma) revenue growth of between 12% to 14% in constant currency terms.
It’s expecting double-digit revenue growth in percentage terms in North America, Latin America and Asia. In Australia, it’s expecting high single digit revenue growth in percentage terms.
On profit growth, the company is expecting total (proforma) EBITDA growth of between 10% to 13% in constant currency terms.
Continued operating leverage is expected in Australia and Latin America.
Revenue growth in North America and Asia is expected to be faster than EBITDA growth due to investments.
Net profit is expected to grow between 9% to 13% in constant currency terms.
I think this is a great business, though I don’t think this is the best time to buy after it has doubled over five years and profit growth isn’t shooting the lights out.
There are other ASX growth shares I believe are more appealing for their long-term growth potential, so it’s not a buy in my book.
