FleetPartners Group (FPR) H2 2024 earnings summary

Executive summary

• Achieved record new business writings (NBW) of AUD 924 million, up 21% year-over-year, driven by strong demand, EV uptake, and execution of strategic programs.

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

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

• NPATA was AUD 87.7 million, down 1% year-over-year, despite headwinds from declining used car prices.

• Share buyback of AUD 30 million announced for 1H 2025, with total shares cancelled since 2021 expected to reach 32%.

Financial highlights

• 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 cash EPS rose 9% to AUD 0.365.

• End-of-lease income was AUD 70.6 million, down 4%, with per unit income down 19% as used car prices normalized.

• Operating expenses increased 6% to AUD 89.2 million due to business growth and inflation.

• Portfolio credit quality remains high, with 90+ day arrears at 44bps.

Outlook and guidance

• Average AUMOF and NOI pre-EOL and Provisions expected to continue growing in FY 2025, but margin normalization and funding transition 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.

• No Australian corporate tax expected in FY25 due to carried-forward tax losses.