FleetPartners Group AGM: Accelerate Transformation Complete, FY26 Outlook Steady, Dividend Returns Rise

FleetPartners Group (ASX:FPR) used its annual general meeting to outline the completion of a multi-year technology and operating transformation, review FY25 financial performance, and provide an early FY26 trading update and outlook.

FY25 transformation and operating update

Chair Gail Pemberton said the “defining achievement” of FY25 was the completion of the Accelerate program, which consolidated brands, systems, and processes onto a single platform across Australia and New Zealand. She said the program improved scalability, efficiency, and customer experience, and acknowledged that some novated customers experienced service disruptions following the transition. Those issues were described as temporary and resolved by year-end.

Pemberton characterized FleetPartners as a “defensive investment” supported by consistent performance and substantial positive cash flow generation, which she said enables investment while maintaining disciplined capital management and shareholder returns.

FY25 financial metrics highlighted

In her remarks, Pemberton highlighted several FY25 results and portfolio indicators:

• New business writings declined 16% year-on-year, which she said largely reflected an exceptional pipeline unwind in FY24; excluding that effect, she said new business writings were down 6% due mostly to subdued business confidence.
• UMOF grew to AUD 2.3 billion, up about 2% to 3%.
• Core income reached AUD 169 million, up 6% year-on-year.
• NPATA pre end-of-lease (EOL) was AUD 41 million, up 9%, which she attributed to disciplined expense management and growth in AUMOF and core income.
• End-of-lease income was AUD 61 million, with EOL per unit of AUD 5,880 and vehicles sold down 10%.
• The portfolio had an illustrative embedded EOL income of approximately AUD 250 million.
• Earnings per share increased 3% to 37.5%, which she said was supported by the on-market buyback program.
• Organic cash flow was AUD 93 million.
• 90+ day arrears ended the year at 44 basis points, which Pemberton said was offset by the value of underlying vehicles and reflected the “tools of trade” nature of leased vehicles for corporate customers.

Capital management changes and dividend focus

Both Pemberton and CEO Damien Berrell discussed changes to capital management. The board increased its capital payout ratio range to 60% to 70% of NPATA and decided to end the share buyback program and return to dividends as the primary means of shareholder returns.

The company announced an AUD 29 million unfranked dividend of AUD 0.136 per share, described as representing the midpoint of the payout ratio range and an annualized yield of 8.9% at the time of announcement. Berrell said the buyback program, initiated in FY21, returned AUD 310 million to shareholders since inception. He added that the dividend is unfranked due to carry-forward tax losses, and management’s expectation is to resume franking after September 2026.

Strategy and Remunerator acquisition

Management said the post-Accelerate strategy is built around four pillars: attracting new customers, retaining existing customers, growing share of wallet, and profit optimization. Pemberton said the acquisition of salary packaging and novated lease provider Remunerator, announced post-balance date on November 17, was driven by this strategy and a renewed focus on growth after Accelerate’s completion. She said the deal was intended to enhance salary packaging capability, broaden the addressable novated market, and was expected to be earnings accretive.

Berrell described FleetPartners’ business model as delivering “stable, predictable, and recurring earnings,” stating that 95% of core income is annuity-like and embedded in leases with an average term of 3.9 years. He also said approximately 80% of leases remain on book from the start to the end of the year, and leases rolling off are replaced 90% of the time.

FY26 first-quarter update and outlook

Berrell provided a 1Q26 trading update, noting core income rose 2% versus the prior comparable period despite subdued conditions and weaker-than-expected new business writings. New business writings were AUD 185 million, down 13% year-on-year. Assets under management or financed ended the quarter at AUD 2.4 billion inclusive of Remunerator and was broadly stable excluding it. End-of-lease income per vehicle was AUD 5,571, marginally down from 2H25, while management again cited illustrative embedded EOL income of approximately AUD 250 million.

For FY26, the group expects marginal growth in new business writings, relatively stable UMOF (and by extension core income), and stable end-of-lease income, alongside ongoing operating expense discipline. Berrell also noted expected full-year OpEx (including approximately three-quarters of Remunerator) of AUD 98.5 million to AUD 99.5 million, and said the company expects high cash flow generation despite elevated cash tax.

On demand drivers, Berrell said novated momentum may continue to be supported by strong electric vehicle interest, while noting the government’s announced statutory review of the Electric Car Discount Bill and that it was too early to predict the outcome or potential impact on novated demand. He also pointed to recent tender success in large fleets, an increased pipeline of sale-and-leaseback opportunities, and double-digit growth in small fleets in both Australia and New Zealand.

In shareholder Q&A, the chair said the board met with major proxy advisers and reported there were no recommendations against any resolutions. Pemberton also said she was standing for re-election for what would likely be her final term and that the board would progress chair succession planning over coming years. The meeting concluded with all resolutions put to a poll, with results to be released to the ASX after counting.

About FleetPartners Group (ASX:FPR)

FleetPartners Group Limited provides fleet management services in Australia and New Zealand. The company operates through three segments: Australia Commercial, Novated, and New Zealand Commercial. It offers vehicle fleet leasing and management, novated leasing, salary packaging, and vehicle accessories and sales solutions. The company provides its services under the FleetPartners brand. The company was formerly known as Eclipx Group Limited and changed its name to FleetPartners Group Limited in March 2023.