COG Financial Services delivers 14% EBITDA growth in record first half
COG Financial Services has reported underlying EBITDA to shareholders of $22.3m for the half-year ended 31 December 2025, representing a 14% increase on the prior corresponding period. The result reflects dual growth drivers: organic momentum across core business segments combined with strategic acquisitions that expanded the group’s market footprint.
Revenue climbed 8% to $196.9m, while earnings per share adjusted (EPSA) rose 7% to 6.61 cents per share. The board declared an interim dividend of 3.5 cents per share, up 17% on 1H25’s 3.0 cents, with a payout ratio of 54.4%. The dividend will be fully franked and paid on 15 April 2026 to shareholders registered on 11 March 2026.
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What is salary packaging and why does it matter for COG?
Salary packaging is a pre-tax employee benefit arrangement that allows workers to pay for certain expenses—such as vehicle leases, superannuation contributions, or living costs—from their gross salary before income tax is calculated. This reduces taxable income and can deliver significant savings for employees, particularly when combined with fringe benefits tax (FBT) exemptions.
The FBT exemption on electric vehicles has accelerated uptake of novated lease arrangements, where employers facilitate vehicle financing as part of salary packages. This exemption allows employees to access electric vehicles without incurring FBT, making EVs more affordable and attractive.
For COG Financial Services, the Salary Packaging segment has become a material profit contributor, delivering $11.7m in EBITDA to shareholders in 1H26. The combination of organic customer growth and policy-driven demand for EVs is fuelling expansion in this segment, with management expecting continued organic momentum as more employers and employees adopt salary packaging solutions.
Salary Packaging segment surges 63% on EV tailwinds and acquisition
COG’s Salary Packaging segment delivered standout growth, with EBITDA to shareholders of $11.7m, up 63% on the prior corresponding period. The result reflects two components: organic growth of $5.9m and an acquisition contribution of $5.3m from Easifleet, which was acquired in September 2025.
Revenue in the segment reached $38.6m, up 41% on 1H25, while the EBITDA margin remained effectively stable at 34.7% despite ongoing investment in people and systems. Customer metrics demonstrated accelerating scale:
- Salary packaging customers: +53% on pcp
- Novated lease customers: +51% on pcp
The segment’s growth is underpinned by three key drivers: (1) the FBT exemption on electric vehicles, which has stimulated demand for novated leases; (2) the integration of Easifleet, which expanded COG’s service capacity and geographic reach; and (3) cross-selling initiatives to existing employer partners, deepening penetration within the customer base.
Management Outlook
“The Group’s Salary Packaging segment continues to deliver outstanding results. We expect ongoing organic growth as we continue to capture opportunities driving uptake with current partners, assisted by current government incentives on electric vehicles.”
Easifleet acquisition strengthens national footprint
On 1 September 2025, COG’s subsidiary Paywise completed the acquisition of 100% of Easifleet for cash consideration of $36.5m plus a working capital adjustment. Contingent payments of up to $8.1m are payable between July 2026 and June 2029, subject to the continuation of the FBT exemption for electric vehicles. The payments were recognised at fair value of $7.3m in trade and other payables.
The acquisition strengthened COG’s position in the salary packaging market by adding customer scale and operational capability. Concurrently, Platform Consolidated Group (PCG) increased its ownership of Fleet Network to 92.38% through the acquisition of an additional 14.08% equity interest from minority shareholders, funded by a $20m capital placement and debt facility drawdowns.
Broking and Aggregation maintains market leadership with $4.5 billion funded
COG holds the position of Australia’s largest asset finance broker and aggregator, with an estimated market share of approximately 6%. The Broking & Aggregation segment reported net assets financed of $4.5bn in 1H26, up 7% on the prior corresponding period, reflecting volume growth in the group’s primary sectors of infrastructure and construction.
| Metric | 1H26 | 1H25 | Change |
|---|---|---|---|
| Revenue | $138.8m | $134.6m | +3% |
| EBITDA | $19.7m | $19.8m | -1% |
| Net assets financed | $4.5bn | $4.2bn | +7% |
Revenue grew 3% to $138.8m, driven by $2.4m in organic volume growth and $1.8m from an acquisition. EBITDA to shareholders of $12.2m was broadly stable, down 2% on 1H25, as margin compression from tighter financier incentive rates offset volume gains. The EBITDA margin contracted to 14.2% (1H25: 14.7%) reflecting continued investment in broker network capacity and systems enhancements to support future growth.
Acquisition strategy deploys $72.9m with debt capacity remaining
During 1H26, COG deployed $72.9m on strategic acquisitions and equity consolidation, comprising $32.5m in cash, $11.1m in deferred and contingent considerations, and $29.3m in assumed debt. The three key transactions were:
- 100% of Easifleet (via Paywise)
- Additional 17.79% equity interest in Fleet Network (via Platform Consolidated Group)
- Additional 10.00% equity interest in Access Capital (via QPF Holdings)
The acquisitions were funded through a $20m equity placement and drawdowns on COG’s acquisition facility. At 31 December 2025, the group maintained a corporate debt-to-EBITDA ratio of 1:1, with approximately $30m of debt capacity available for further acquisitions. Management has signalled it will continue to pursue strategic bolt-on deals where targets can be secured at the right price, balancing growth ambitions with capital discipline.
Unrestricted cash and acquisition runway
Unrestricted corporate cash stood at $18.3m in the Other segment at 31 December 2025. Total unrestricted cash attributable to members across all segments was $83.9m, providing COG with liquidity for operational needs and acquisition opportunities. The group’s ability to deploy capital across organic investment, dividends, and M&A demonstrates strong cash generation and moderate leverage, supporting continued optionality without dilutive equity raises.
Lending segment returns to growth with disciplined book management
The Lending segment reported EBITDA to shareholders of $1.0m, up 67% on the prior corresponding period. Revenue increased 3% to $20.0m, with the EBITDA margin improving to 6.0% (1H25: 3.6%) as expected credit loss provision reversals on a reduced loan portfolio supported profitability.
The TL Commercial run-off is largely complete, with residual receivables of $0.04m representing present value of lease and loan instalments expected to be received over the next couple of months. Westlawn Managed Investment Scheme grew strongly to $97.7m (1H25: $48.8m), while Westlawn Unsecured Notes and Warehouse Trust balances remained stable. Expected credit loss (ECL) provision rates remained contained at 1.9%, demonstrating disciplined credit management across the lending book.
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Outlook points to continued organic momentum and technology investment
Management’s forward guidance emphasises ongoing organic growth in the Salary Packaging segment, supported by electric vehicle incentives and deepening relationships with existing employer partners. The group continues to invest in IT capabilities, with a focus on AI-driven efficiency gains across broker aggregation and salary packaging platforms.
COG remains active in its acquisition pipeline, targeting bolt-on opportunities that align with strategic priorities while maintaining discipline on pricing. At a 1:1 debt-to-EBITDA ratio, the group retains approximately $30m of debt capacity, providing flexibility to pursue value-accretive deals without compromising balance sheet strength.
Management Commentary on Technology and Growth
“Technology and AI are constantly evolving in our sectors. We see incredible opportunities for growth and efficiency, and we’re excited to embrace these developments to enhance our processes.”
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