FleetPartners Group (FPR) H2 2025 earnings summary

Executive summary

• Core income grew 6% year-over-year to AUD 169 million, supported by average AUMOF growth and stable margins, demonstrating resilience and strong cash generation in a challenging environment.

• NPATA pre-EOL increased 9% year-over-year to AUD 41 million, reflecting higher core income and disciplined operating expenses.

• Cash EPS rose 3% to AUD 0.375, aided by share buybacks and a 7% reduction in average shares on issue.

• Returned to a net cash position of AUD 28 million at September 2025, from net debt of AUD 17 million at March 2025.

• Completion of the Accelerate program delivered over AUD 6 million in annualized cost savings and streamlined operations.

• Acquisition of Remunerator announced, enhancing salary packaging and novated leasing capabilities, expected to be EPS accretive pre-synergies.

Financial highlights

• New business writings (NBW) declined 16% year-over-year to AUD 778 million, reflecting a strong prior year and subdued business confidence.

• UMOF/AUMOF grew to AUD 2.3 billion, up 2–3% year-over-year, with 80% now balance sheet funded.

• MPAE/NPATA pre-EOL was AUD 41 million, up 9%; end-of-lease income was AUD 61 million, down 14% as vehicles sold declined 10% and EOL per unit dropped 4%.

• NOI was AUD 223.9 million, down 1% year-over-year; EBITDA was AUD 132.4 million, down 4%.

• Organic cash flow was AUD 93 million, supporting strong cash generation and distributions.

• Dividend of AUD 0.136 per share declared, representing an 8.9% yield and 60–70% payout of NPATA.

Outlook and guidance

• Operating environment remains subdued, with cautious customer behavior and delayed decision-making expected to persist into FY2026.

• Core margin expected to remain stable; OpEx forecasted at AUD 95–96 million for FY26, with increases driven by activity, growth investment, and inflation.

• End-of-lease profit and units sold expected to increase in FY26; strong cash generation anticipated to support consistent shareholder distributions despite higher cash tax outflows.

• Transition to low/no emission fleets and novated leasing FBT exemptions seen as ongoing growth drivers.