FleetPartners delivered a resilient 3Q25 performance with 5% growth in key metrics despite operational challenges from a major system upgrade. A recent $400 million asset-backed securitisation deal also improved funding costs, positioning the company for growth in underpenetrated markets.
- 5% growth in assets under management on fleet (AUMOF) and net operating income pre end-of-lease provisions
- New business writings impacted by Accelerate system cutover and softer macroeconomic conditions
- Completed $400 million Australian ABS issuance including a $80 million Green Bond tranche
- Used vehicle prices stabilised with stronger end-of-lease profit per unit expected medium term
- FY25 viewed as a transition year with momentum expected to build into second half of 2026
Resilience Amid Transformation
FleetPartners Group Limited (ASX – FPR) has reported a solid third quarter for fiscal 2025, demonstrating resilience despite temporary disruption caused by the rollout of its Accelerate system. The company posted a 5% year-on-year increase in assets under management on fleet (AUMOF) and net operating income (NOI) before end-of-lease (EOL) provisions, underscoring the defensive and cash-generative nature of its business model.
While new business writings (NBW) were down 17% year-to-date compared to the prior corresponding period, this decline was partly attributed to the system cutover blackout and softer macroeconomic conditions. Excluding pipeline unwind and sale-leasebacks, underlying NBW showed a modest improvement, signaling underlying demand strength.
Strategic Funding and Cost Efficiency
In July 2025, FleetPartners successfully completed a $400 million Australian asset-backed securitisation (ABS) issuance, including an $80 million Green Bond tranche backed by battery electric vehicles. This transaction not only reflects strong investor appetite but also materially improved the company’s cost of funds, with Class A notes priced at 100 basis points.
The Accelerate program has delivered over $6 million in annualised cost savings, enhancing operational efficiency. Despite temporary elevated arrears and net debt levels linked to the system transition, management expects these to normalise by the end of fiscal 2025 and into early 2026.
Market Dynamics and Growth Opportunities
Used vehicle prices, a key driver of end-of-lease income, have stabilised after pandemic-induced volatility. FleetPartners anticipates that EOL profit per unit will remain stronger for longer, providing a buffer as the market gradually normalises. The company’s portfolio quality remains robust, supported by high retention rates and successful tender wins, particularly in Australia despite the subdued economic backdrop.
FleetPartners continues to invest in digital solutions and omnichannel distribution to capture growth in underpenetrated segments, including the transition to low and zero-emission fleets. Novated leasing demand remains strong, with electric vehicles comprising a growing share of new business writings following the cessation of certain subsidies.
Outlook – Transition Year with Long-Term Momentum
Management characterises fiscal 2025 as a transition year, with momentum expected to build into the second half of 2026 and beyond. While the Accelerate system cutover has temporarily disrupted operations, the integration of one brand and platform is already yielding benefits. The company remains confident in its growth trajectory, underpinned by strong commercial wins, funding innovations, and the evolving fleet management landscape.
Bottom Line?
FleetPartners is navigating short-term disruption with strategic funding and operational gains, setting the stage for growth beyond FY25.
Questions in the middle?
- How quickly will FleetPartners fully resolve the Accelerate system cutover impacts on arrears and net debt?
- What is the expected trajectory for new business writings recovery in the face of macroeconomic softness?
- How will the shift to electric vehicles and green financing shape FleetPartners’ competitive position?