SG Fleet Group (SGF) H1 2025 earnings summary

Executive summary

• Revenue increased between 15.2% and 16% year-over-year, reaching up to A$656.9m, driven by strong delivery volumes, innovation, and new business wins across Australia, New Zealand, and the UK.

• Net Profit After Tax declined 9.8% to A$41.1m, impacted by higher operating expenses and interest costs.

• LeasePlan system migration is nearing completion, supporting operational integration and revenue growth.

• A Scheme Implementation Deed was signed for a proposed acquisition at $3.50 per share, pending regulatory and shareholder approvals.

• Dividends totaling $83.2 million were paid, including a special dividend of 15 cents per share.

Financial highlights

• Net revenue increased by 6.6% to A$210.7m, with total revenue up to A$656.9m and EBITDA rising to $243.7m.

• NPAT decreased by 9.8% to A$41.1m, with EPS down to 12.01 cents and NPATA down 8.8% to A$46.0m.

• Net rental and finance income declined by 19.2% due to higher interest costs and used vehicle market softness.

• Net mobility services revenue grew by 20%, and additional products and services income rose by 12.3%.

• Finance commission increased by 25.7%, driven by higher funded deliveries and commission per unit.

Outlook and guidance

• Order pipeline remains elevated but is gradually normalizing, with full normalization expected into FY26.

• EBITDA for the half was in line with FY2024 operationally, but disposal levels and used values are expected to soften further in the second half.

• No immediate risk anticipated to EV incentives from potential government changes.

• The Scheme with Westmann Bidco is expected to be implemented in April 2025, pending approvals.