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.

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

• Cash earnings per share rose 3% to AUD 0.375, aided by share buybacks.

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

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

Financial highlights

• New business writings declined 16% year-over-year, 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.

• End-of-lease income was AUD 61 million, down 14% as units sold declined 10% and EOL per unit dropped 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% annualized yield and 65% payout of 2H25 MPAE/NPATA.

Outlook and guidance

• Operating environment remains subdued, with cautious customer behavior and extended lease terms expected to persist into FY2026.

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

• High cash flows anticipated to continue, supporting consistent shareholder distributions.

• End-of-lease income anticipated to remain stable, with profit per unit offset by higher units sold.

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