COG FY 2026 slides: salary packaging drives 28% EBITDA growth

COG Financial Services Limited (ASX:COG) reported its FY 2026 results on August 26, 2026, highlighting significant growth driven by its salary packaging business. Share prices rose 7.53% to $1.57 following the presentation, although the stock remains below its 52-week high of $2.46, indicating potential undervaluation. Salary packaging now accounts for 60% of group EBITDA, up from 41% the previous year.

The company's revenue increased by 9% to $399.8 million, while EBITDA to shareholders surged by 28% to $51.5 million, and earnings per share adjusted (EPSA) rose 27% to 15.63 cents. CEO Andrew Bennett attributed the strong performance to investments in technology, people, and processes, positioning the company for larger contracts and improved efficiency.

The salary packaging segment saw the most significant growth, with EBITDA to shareholders increasing 88% to $31.0 million and revenue up 51% to $88.7 million, largely driven by organic growth and strategic acquisitions, including the $36.5 million purchase of Easifleet. Customer acquisition and settlement activity surged, with novated lease customers doubling and total salary packaging customers growing by 31%.

Management expects continued growth as electric vehicle adoption accelerates, noting that the addressable market should double in the near term. The Broking & Aggregation segment delivered modest but stable results, with revenue increasing 3% and EBITDA to shareholders remaining flat. The Lending segment faced challenges, with EBITDA to shareholders declining 37% to $1.2 million and revenue down 9%.

Cash generation remained strong, with total assets reaching $731.3 million and net assets at $206.6 million.