FleetPartners Reports 9% NPATA Growth Excluding End-of-Lease Profit in FY25

Resilience in a Challenging Year

FleetPartners Group Limited (ASX – FPR) has demonstrated notable resilience in its FY25 financial results, navigating a subdued economic environment across Australia and New Zealand. Despite a 16% decline in new business wins compared to the prior corresponding period, the company managed to grow core income by 6%, supported by a 6% increase in average assets under management on fleet operating finance (AUMOF).

The group’s net profit after tax excluding amortisation and end-of-lease (EOL) profit rose 9% to $41 million, underscoring the strength of its core operations. However, statutory net profit after tax declined slightly by 3% to $75 million, reflecting a 14% reduction in EOL income due to fewer disposals and lower average EOL per vehicle.

Accelerate Program and Cost Discipline

A key highlight for FY25 was the completion of the Accelerate program, a transformational initiative that streamlined FleetPartners’ operating model and delivered over $6 million in annualised cost savings. Operating expenses increased modestly by 3% to $91.5 million, in line with guidance, reflecting disciplined cost management despite investments in growth and technology.

The program’s success has enhanced the group’s competitiveness and service delivery, providing a solid platform for future expansion. Temporary disruptions from the Accelerate system cutover impacted arrears and cash flow in the short term, but these effects have largely been resolved by the end of the financial year.

Capital Management and Shareholder Returns

Following the completion of a $25 million on-market share buy-back in the second half of FY25, FleetPartners has transitioned to a dividend-focused capital return strategy. The board declared an unfranked final dividend of 13.6 cents per share, payable in January 2026, representing 65% of half-year NPATA and aligning with an increased capital payout ratio target of 60–70%.

The buy-back program, which commenced in FY21, returned a total of $281 million to shareholders and reduced shares on issue by 36%. The suspension of the dividend reinvestment plan signals a clear preference for direct shareholder distributions, while the group maintains balance sheet flexibility to support growth initiatives.

Strategic Growth and Market Positioning

FleetPartners bolstered its market position through the acquisition of Remunerator, a seasoned salary packaging and novated lease provider. This move expands the group’s capabilities in the novated leasing sector and complements its existing offerings.

Looking ahead to FY26, the group plans to invest further in digital platforms, data analytics, telematics, and strategic partnerships, particularly targeting under-penetrated fleet segments. Operating expenses are expected to rise modestly to $95–96 million, reflecting continued investment balanced with cost discipline.

Outlook Amid Uncertainty

While geopolitical and macroeconomic uncertainties continue to temper customer sentiment and slow new business decisions, FleetPartners expects stable core margins and increased end-of-lease profits in FY26. The group’s strong cash generation and balance sheet stability underpin its ability to deliver sustainable shareholder returns, with an attractive implied annualised dividend yield of 8.9%.