FleetPartners has released its full-year 2025 results, offering a clear view of how the business is performing in a softer economic environment – and what’s driving profitability beneath the surface. For an industry that relies heavily on the stability of fleet management organisations, the update provides important context for fleet buyers planning replacement cycles, funding strategies and novated leasing options for staff.
What stands out across the documents released to the ASX is a consistent message: new business volumes are down, but the company’s financial performance remains resilient, underpinned by continued strength in novated leasing and the contribution of End of Lease (EOL) income.
New Business Growth Falls in a Challenging Market
FleetPartners reported New Business Write (NBW) of $778 million, which is 16% lower than the previous corresponding period. The company notes that last year’s result was boosted by the unwinding of an unusually large order pipeline when vehicle supply constraints began to ease.
Stripping that factor out, NBW was still 6% down, with FleetPartners stating that the decline was due to “subdued economic confidence” in both Australia and New Zealand and the temporary impacts of the Accelerate system cutover.
For fleet buyers, this aligns with what many organisations have reported throughout 2025: delayed replacement cycles, slower internal approvals, and a more cautious approach to capital expenditure.
Growth and Strong Cash Generation Show a Defensive Business Model
Despite the fall in incremental new business, the total lease portfolio (AUMOF) continued to grow, reaching $2.3 billion, up 2% year-on-year.
The company points out that around 80% of leases remain on book from the start to the end of the year, highlighting the stickiness of contracted fleet volumes even when new ordering activity slows.
FleetPartners continues to emphasise its business as “stable, predictable and recurring”, with approximately 95% of core income annuity-like for the average 3.9-year term of its operating leases.
Cash generation also remained a highlight, with $93 million in organic cash flow and a return to a net cash position of $28 million by 30 September 2025.
Novated Leasing Continues to Drive Performance
The results again confirm that the FBT exemption for electric vehicles is having a meaningful impact.
According to FleetPartners:
- 60% of novated NBW in FY25 related to BEVs and PHEVs, up from 53% a year earlier.
- Novated division supported a 21% lift in core income.
- Average AUMOF for Novated grew 17%, the strongest of all business units.
FleetPartners directly attributes this uplift to the ongoing FBT concession for zero-emission vehicles, which remains in place until mid-2027 (with PHEV benefits ending from April 2025).
This reinforces a trend already visible across corporate fleets: novated leasing has become the primary pathway through which employees are adopting electric vehicles, while corporate fleet EV uptake remains slower.
EOL Income: Continued Contribution to Profitability
A key component of FleetPartners’ financial performance is End of Lease (EOL) income, which totalled $61 millionfor the year. This was 14% lower than FY24, driven by:
- a 10% decline in units sold, due to lower NBW feeding through to end-of-term volumes
- a 4% decrease in average EOL profit per vehicle, down to $5,880
The company noted that used-vehicle prices have “broadly stabilised”, with EOL income expected to remain stronger over the medium term before normalising to historical averages.
Importantly for the industry, FleetPartners quantified the future benefit: there is an estimated $250 million in embedded EOL income across the current portfolio, expected to be realised over the next five years.
This effectively represents the premium customers pay when outsourcing residual risk — a predictable, ongoing revenue stream for FMOs that reduces volatility in challenging market conditions.
Operating Expenses Under Control
The company continues to highlight the benefit of the Accelerate program, confirming:
- more than $6 million in annualised cost savings
- operating expenses held to $91.5 million, just 3% higher year-on-year
NPATA excluding EOL increased 9% to $41 million, driven entirely by core income growth and cost discipline.
Remunerator Acquisition Broadens Capability
FleetPartners also confirmed the acquisition of Remunerator, a long-established salary packaging and novated leasing provider. Key metrics from the ASX statement include:
- $31.4 million upfront consideration, representing 5.9× LTM EBITDA
- up to $8.6 million in deferred/contingent payments
- low single-digit EPS accretion pre-synergies
- completion expected in 1H26
The company says the deal enhances its positioning in the novated market by adding a full-suite salary packaging capability and expanding its customer channels.
For fleets, this may translate into a more integrated salary packaging and novated service bundle, depending on how the joined groups align systems and delivery models.
What Fleet Managers Should Take Away
1. Revenue is increasingly driven by novated leasing
The combination of strong consumer demand and the FBT exemption continues to underpin earnings. This reinforces the importance of organisations reviewing their novated leasing policies and employee benefit programs.
2. EOL income remains a major contributor
With ~$250m of embedded EOL income across the portfolio, FMOs — not fleet customers — are currently capturing the upside in stabilised used-vehicle pricing.
3. New business softness mirrors broader industry conditions
The fall in NBW reflects delayed purchasing, economic uncertainty and slower internal approvals across the fleet sector.
4. The business remains financially stable
Despite lower NBW, AUMOF grew, cash generation remained strong, and margins were broadly stable — all important for customers assessing long-term service reliability.
FleetPartners has delivered a result that balances softer frontline sales activity with strong recurring revenue and disciplined cost management. The company clearly benefits from the sustained momentum in novated leasing, supported by government policy, while EOL income continues to provide an additional buffer that many fleet operators will recognise as the value FMOs derive from assuming residual risk.
As 2026 approaches, fleet decision makers can expect continued investment from FleetPartners in digital tools, expanded novated offerings and small-fleet channels — alongside a cautious outlook shaped by economic uncertainty and slower business sentiment.
For industry professionals planning the next phase of fleet renewal and policy updates, this year’s FleetPartners results provide a useful snapshot of how market conditions are influencing one of Australia and New Zealand’s major fleet management providers.
