SG Fleet’s 1H2025 Revenue Climbs 6.6% Despite NPAT Dip to $41.1m

Financial Performance Overview

SG Fleet Group Limited (ASX: SGF) announced a net profit after tax (NPAT) of $41.1 million for the half year ended 31 December 2024, marking a slight decline from the $45.5 million recorded in the same period last year. Despite this, total net revenue climbed 6.6% to $210.7 million, reflecting robust operational momentum across its core markets.

The company’s reported earnings per share stood at 12.01 cents, with cash EPS at 13.46 cents. Notably, no dividend was declared in line with the Scheme Implementation Deed announced in December 2024, signaling a strategic focus on reinvestment and integration efforts.

Drivers Behind the Results

SG Fleet’s performance was buoyed by higher than anticipated disposal volumes of vehicles, which temporarily lifted earnings beyond internal forecasts. CEO Robbie Blau highlighted that while used vehicle values softened as expected, they showed resilience towards the end of the period. However, the company expects disposal volumes to normalize and used vehicle values to trend lower in the second half of 2025, aligning with prior guidance.

Growth in the funded fleet was a key contributor, supported by sale and leaseback conversions, particularly in the Corporate channel. This expansion, alongside increased product penetration in the legacy LeasePlan portfolio, drove a 20% increase in Net Mobility Services Revenue. Additional products and services revenue grew by 12.3%, while finance commissions surged 25.7%, reflecting higher delivery volumes and increased average capital per unit.

Regional Market Highlights

In Australia, SG Fleet capitalized on a strong tender pipeline and cross-channel referrals, including from European partner Ayvens, to grow its customer base. Demand for safety and asset management solutions like Inspect365 and Bookingintelligence increased, while the Novated channel benefited from employer interest in vehicle salary packaging, with low emission vehicles comprising about 70% of demand.

New Zealand’s market stabilized, with competitive dynamics easing and used vehicle values steadying or rising in some segments. SG Fleet secured new accounts and converted existing customers from unfunded to funded arrangements, aided by its strong reputation with government entities.

The UK business continued its steady growth trajectory amid improving economic conditions and rising new car registrations. Electric vehicle uptake remained robust at 20% market share, supported by tax incentives. SG Fleet expanded its customer base and supplier panel presence, introducing the Novalease salary sacrifice program to more tool-of-trade clients.

Integration and Innovation Progress

SG Fleet reported that the integration of LeasePlan’s operations is nearing completion, with only a few system migration phases remaining. This progress is expected to unlock full synergy benefits. The company also noted accelerating revenue growth from its innovation program and ongoing efforts to enhance the digital customer experience.

Looking ahead, CEO Robbie Blau expressed confidence in building on the solid revenue growth and operational advances achieved in the first half of 2025, positioning SG Fleet for sustained expansion across its key markets.