COG Financial Services FY2026 results show 28% EBITDA lift as salary packaging surges
COG Financial Services (ASX: COG) reported its FY2026 full-year results for the period ended 30 June 2026, with earnings growth led by its Salary Packaging and Broking & Aggregation segments. The results presentation, authorised on 26 August 2026 by Group Chief Executive Officer Andrew Bennett, revealed a broad-based lift in shareholder returns across the completed reporting period.
Underlying revenue reached $399.8m, up 9% on the prior corresponding period (pcp). Underlying EBITDA attributable to shareholders climbed 28% to $51.5m, while earnings per share adjusted (EPSA) rose 27% to 15.63cps.
The company declared a final dividend of 3.5cps, up 17% on pcp and fully franked. Unless otherwise stated, figures are presented on an underlying basis attributable to shareholders.
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FY2026 results at a glance
The following table summarises the headline group metrics for the reporting period. All revenue figures are underlying and exclude interest income.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | $399.8m | $365.2m | +9% |
| Underlying EBITDA to shareholders | $51.5m | $40.3m | +28% |
| NPATA to shareholders | $32.7m | $24.6m | +33% |
| EPSA | 15.63cps | 12.32cps | +27% |
| Total dividend | 7.00cps | 6.00cps | +17% |
The presentation detailed the components behind the EBITDA uplift to shareholders through a growth waterfall:
- Organic growth: +$8.9m
- Acquisitions and increased equity: +$10.5m
- Investment in people and technology: −$5.2m
- Reduced share of Earlypay & Centrepoint (divested May 2025): −$3.0m
Salary Packaging drives the result
The Salary Packaging segment emerged as the standout engine of the FY2026 result, contributing 60% of Group EBITDA, up from 41% in FY25. Management attributed the growth to organic momentum combined with a strategic acquisition.
Segment EBITDA to shareholders surged 88% to $31.0m, with revenue rising 51% to $88.7m. Lease settlements grew 66% and Net Assets Financed reached $0.5bn, up 62% on pcp. The EBITDA margin expanded to 38.7% (FY25: 37.6%).
Customer growth was similarly strong. Novated lease customers effectively doubled, up 98% on pcp, while total salary packaging customers grew to 68,510, an increase of 31%.
The strategic acquisition referenced was Easifleet, acquired at 100% for $36.5m cash consideration via Paywise, effective 1 September 2025. Organic growth was further supported by the federal fringe benefits tax (FBT) incentive on eligible electric vehicles.
COG’s first half 2026 results had already signalled the trajectory, with Salary Packaging EBITDA reaching $11.7m and the customer base up 53% year-on-year as Easifleet began contributing from September 2025.
The following figures illustrate the trajectory of total salary packaging customers over recent years:
- June 2023: 31,022
- June 2024: 42,957
- June 2025: 52,184
- June 2026: 68,510
Broking & Aggregation holds firm; Lending and Other soften
The Broking & Aggregation segment provided a stable, cash-generative base for the group. Segment revenue rose 3% to $273.7m, supported by 5% volume growth. EBITDA to shareholders was flat, unchanged at $24.5m (0% on pcp).
Net Assets Financed through the segment reached $8.5bn, up 5%, with an estimated national market share of 24%. The national footprint spanned 819 broker firms (up 3%) and 1,885 brokers (up 5%).
The Lending segment delivered a steady state outcome, with EBITDA to shareholders of $1.2m, down 37% on pcp. Within the segment, the Westlawn Managed Investment Scheme grew to $124.8m (FY25: $61.0m).
The Other segment recorded an EBITDA loss of $5.2m (FY25: −$2.6m). This decline reflected the nil FY26 contribution from the divested non-core investments Earlypay (EPY) and Centrepoint (CAF), which had contributed $3.0m in FY25 before their disposal in May 2025.
What is salary packaging and novated leasing?
Why does this matter to investors? The federal FBT exemption on eligible electric vehicles is accelerating novated lease uptake, a factor directly linked to COG’s 98% growth in novated lease customers.
Cash generation and balance sheet strength
The quality of earnings across the reporting period was reinforced by strong cash conversion and a solid capital position. Net operating cash inflow rose to $82.4m (FY25: $49.3m), while Underlying Cash NPAT attributable to members reached $38.6m (FY25: $26.3m).
Key balance sheet and cash metrics included:
- Cash and cash equivalents: $187.0m, up $37.7m
- Proportionate share of unrestricted cash attributable to members: $73.7m
- Unrestricted corporate cash (Other segment): $22.9m
- Debt capacity: circa $40m available at a 1:1 corporate debt-to-EBITDA ratio
The strong cash backing provides support for both acquisition activity and dividend distributions.
Dividend and shareholder returns
The company lifted its fully franked returns while maintaining a disciplined payout approach. The final dividend of 3.5cps (FY25: 3.0cps) is 100% franked and payable 1 October 2026, taking the total FY26 dividend to 7.00cps (FY25: 6.00cps).
The payout ratio was 45.5% (FY25: 49.2%), with the company’s policy allowing distributions of up to 70% of NPATA to members.
Key dates for the final dividend are:
- Ex-dividend date: 31 August 2026
- Record date: 1 September 2026
- Payment date: 1 October 2026
The Dividend Reinvestment Plan (DRP) has been suspended in relation to FY26 dividends.
Results Authorisation
The FY2026 results presentation was authorised by Andrew Bennett, Group Chief Executive Officer, on 26 August 2026.
The road ahead — FY2027 targets
Looking forward, management outlined a growth-focused roadmap from the presentation. FY2027 EBITDA to shareholders growth is targeted at 10% or better, though such targets are not guarantees of future performance.
For the Salary Packaging segment, priorities include continued market share capture, EV-led volume growth supported by government incentives, and execution of an active M&A pipeline of accretive bolt-on opportunities.
Within Broking & Aggregation, the company plans continued investment in its aggregation platform to reduce client churn and deliver scale benefits, alongside growth in Equity-One through geographic spread and new fund development. Management also noted that evolving technology and artificial intelligence (AI) continue to provide opportunities across the group’s infrastructure.
The targeted growth is underpinned by acquisition firepower and the structural electric vehicle tailwind, reflecting COG’s diversified financial services model spanning salary packaging, broking, aggregation and lending.
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