McMillan Shakespeare shares on watch on strong FY26 profit and 70c dividend

The McMillan Shakespeare Ltd (ASX: MMS) share price is in focus today after the company delivered a record net profit after tax of $106.7 million for FY26, up 11.4%. Group revenue also climbed 6.8% to $602.1 million.

What did McMillan Shakespeare report?

• Revenue up 6.8% to $602.1 million
• Statutory net profit after tax (NPAT) from continuing operations up 11.4% to $106.7 million
• Underlying net profit after tax and amortisation (UNPATA) up 13.8% to $107.9 million
• Underlying EBITDA grew 14.1% to $180.7 million
• Fully franked final dividend of 70 cents per share, total FY26 dividend 132 cents per share
• Return on capital employed (ROCE) rose to 62.1%

What else do investors need to know?

McMillan Shakespeare saw healthy growth across all segments in FY26, with novated leases under management surging 13.5% to 90,000 and salary packaging customers up 7.1% to 402,000. The plan and support services business also expanded its customer base, and productivity gains were delivered through ongoing investments in technology, automation, and artificial intelligence.

The company reported a strong balance sheet, with net assets of $126.4 million and a low debt-to-EBITDA ratio of 0.4x. MMS also announced an on-market share buyback of up to $10 million to be executed over 12 months.

What’s next for McMillan Shakespeare?

The company enters FY27 from a position of strength, expecting the supportive environment for novated leasing to continue, helped by ongoing electric vehicle incentives and cost-of-living pressures. Demand is anticipated to remain steady across salary packaging and fleet management, while the plan and support services segment is well placed for regulatory changes in the NDIS.

MMS plans to deliver productivity gains, broaden sales capability, and invest selectively in customer propositions as it continues to focus on growth, digital innovation, and enhancing customer experience.

McMillan Shakespeare share price snapshot

The McMillan Shakespeare share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of almost 8%.

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The post McMillan Shakespeare shares on watch on strong FY26 profit and 70c dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended McMillan Shakespeare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.