FleetPartners Group (FPR) H2 2024 earnings summary

Executive summary

• Record new business writings grew 21% year-over-year to AUD 924 million, driven by strong demand and execution of the Strategic Pathways program.

• Recurring annuity-like revenue now comprises 95% of NOI pre-EOL and Provisions, supporting predictable earnings.

• NPATA was AUD 87.7 million, flat year-over-year, despite headwinds from declining used car prices.

• Cash conversion reached 128%, marking the fifth consecutive year above 100%, with AUD 116.3 million organic cash flow in FY24.

• Share buyback of AUD 30 million announced for 1H 2025, representing 65% of 2H24 NPATA and at the top end of the capital payout range.

Financial highlights

• New business writings hit a record AUD 924 million, up 21% year-over-year, and AUMOF grew 11% to a record high.

• NOI pre-EOL and Provisions was AUD 158.7 million, up 5% year-over-year, with margin at 7.41%.

• EBITDA was AUD 137.3 million, down 1%, and NPATA was AUD 87.7 million, also down 1%.

• EPS was AUD 0.365 (AUD 0.244 normalized), up 13% year-over-year; cash EPS up 9% to 36.5c.

• End-of-lease income per unit was AUD 6,141, down 19% as used car prices normalized; total EOL income decreased 4% to AUD 70.6 million.

Outlook and guidance

• Average AUMOF and NOI pre-EOL and Provisions expected to continue growing in FY 2025, but margin normalization and funding transition to balance sheet will partially offset gains.

• End-of-lease income per vehicle to remain elevated but continue normalizing as used vehicle prices revert to pre-COVID levels.

• Provisions to increase as balance sheet funded portfolio grows.

• OPEX to reflect Accelerate cost savings, offsetting most inflation-driven increases; operating expenses to rise with activity and inflation.

• New business writings expected to be flat in FY 2025, a strong outcome given prior pipeline unwind.