FleetPartners Group (FPR) H1 2025 earnings summary

Executive summary

• Completed Project Accelerate, delivering operational leverage, scalability, and $6 million+ in annualized cost savings, positioning the group for future growth.

• Business model remains highly cash generative and defensive, with 95% of NOI pre EOL and provisions annuity-like, and high cash generation (AUD 116 million organic cash in 12 months).

• AUMOF reached AUD 2.3 billion, growing at a 7% CAGR since FY 2023, with 6% growth in 1H25 and NOI pre EOL and provisions up 6% CAGR.

• Share buyback program returned AUD 255 million since May 2021, with a further AUD 25 million buyback declared for 2H 2025.

• Strong ESG progress: 62% of novated leases in 1H 2025 are EVs, 98% of own fleet now electric, and 105 customer sustainability reviews since FY 2024.

• Revenue increased to $377.0 million for the half-year ended 31 March 2025, up 2.6% year-over-year, driven by growth in lease portfolio and demand for electric vehicles.

Financial highlights

• AUMOF grew 6% year-over-year, despite a 17% decline in new business writings, which was impacted by prior year pipeline unwind and Accelerate system cutover.

• NOI pre EOL and provisions rose 8% to AUD 82.1 million, in line with AUMOF growth.

• EBITDA was AUD 61.4 million, down 7% year-over-year; NPATA was AUD 38.9 million, down 7%, but up 10% excluding EOL.

• End-of-lease income fell 18% to $29.5 million, reflecting fewer units sold and a 4% decline in EOL per unit.

• Cash conversion robust at 112%, with organic cash generation of AUD 46 million in 1H 2025.

Outlook and guidance

• Operating environment remains stable, with no direct impact from new U.S. tariffs and stabilized used car prices supporting elevated EOL profits.

• NOI pre EOL and provisions expected to grow in 2H 2025, driven by AUMOF growth, partially offset by normalization of management fees and reduced funding commissions.

• EOL income per vehicle to remain elevated; vehicle disposal volumes expected to improve.

• Provisions to align with growth in balance sheet funded portfolio; OpEx expectations reconfirmed.

• CapEx expected at AUD 6 million annually for the next couple of years, then reducing to AUD 4-5 million.

• Impact from the Accelerate system cutover in February 2025 is expected to be recovered over the remainder of the financial year.