Shares in FleetPartners Group Ltd (ASX: FPR) are trading higher this morning after the company reported its FY25 results and laid out key strategic actions. Investors seem encouraged by the outcome and the path ahead.
At the time of writing, the FleetPartners share price is up 4% to $2.98 following the update.
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What did FleetPartners report?
- Assets Under Management or Financed (AUMOF) reached A$2.30 billion, representing around 2% growth year on year (3% excluding FX movements)
- Core Income (net operating income pre End-of-Lease (EOL) and provisions ) grew 6%, driven by growth in average AUMOF
- The company has concluded its on-market share buyback program ($25.3 million was paid in 2H25) and is returning to dividend payouts
- The group's payout ratio for capital returns back to shareholders will increase from 55% – 65% of NPATA to a new range of 60% – 70% of NPATA
Acquisition of Remunerator
In addition to its strong underlying performance, FleetPartners also confirmed the strategic acquisition of Remunerator (expected to be completed in 1H26).
Remunerator is a salary packaging and novated lease provider, and it will be acquired for an upfront consideration of $31.4m, implying a 5.9x EBITDA multiple. There is a further $8m in deferred and contingent consideration.
The acquisition will be funded by a combination of cash and debt.
Management expects the acquisition to be EPS accretive pre-synergies, and the rationale is that Remunerator broadens FleetPartners' range of customer offerings whilst also expanding its growth channels.
What next for FleetPartners?
Management struck a relatively upbeat tone for FY26 despite trading conditions expected to be challenging through 1H26. They highlighted:
- A continued disciplined approach to opex management with $95m – $96m expected in FY26 (implying a 2% – 3% increase)
- Core margins to remain stable relative to AUMOF growth
- End of lease income to also remain stable, with higher units sold in FY26 expected to offset a decline in profit per unit
FleetPartners share price snapshot
Over the past 12 months, the FleetPartners share price has increased 8%, reflecting renewed confidence in the company's post-transformation outlook. With a clearer earnings base, reinstated dividends, and a positive medium-term outlook, investors appear cautiously optimistic about the year ahead.
