McMillan Shakespeare’s (MMS) fleet management business increased the number of vehicles under management during FY26, with particularly strong growth in managed-only arrangements as the company invested in productivity and operational changes intended to support future expansion.
MMS’s Asset Management Services (AMS) division finished the year with approximately 16,000 fleet units, up 3.3%, while the business recorded 20 net new fleet client wins. Managed-only units increased 30%, making this one of the more significant growth areas within the fleet division.
The results suggest MMS is continuing to expand beyond traditional funded fleet arrangements, with more clients using the company for fleet management services without necessarily relying on MMS to finance the vehicles.
That shift is important for Fleet Managers because managed-only arrangements allow organisations to separate vehicle funding from services such as administration, maintenance management, reporting and remarketing.
Managed-only fleet grows 30%
The 30% increase in managed-only units was substantially higher than the overall 3.3% increase in fleet units during FY26.
While MMS does not provide a detailed breakdown of the number of funded and managed-only vehicles in its results, the growth indicates that fleet management services are becoming a larger part of the AMS proposition.
MMS described AMS as a “Specialist Fleet Manager, growing customers”, with the 20 net new client wins providing another potential source of vehicle growth in future periods.
The company also reported stronger productivity across the fleet operation.
The number of leased assets managed per FTE increased 17.2%, from 209 in FY25 to 245 in FY26.
That productivity improvement is consistent with a broader MMS strategy focused on using technology, simplified processes and operating scale to support growth without a corresponding increase in resources.
Rob De Luca, CEO and Managing Director, MMS, said productivity had been an important part of the wider group result.
“Technology-enabled productivity continues to deliver significant benefits for MMS. Our investments in automation, artificial intelligence and digital self-service continue to improve customer outcomes while driving operational efficiency across the Group.”
Investment ahead of future efficiencies
MMS also spent $0.7 million during FY26 establishing a business process outsourcing operation and consolidating car yards, which the company said was intended to deliver future efficiencies.
For the fleet business, those changes are significant because vehicle administration and remarketing remain labour- and infrastructure-intensive parts of the operating model.
Consolidating car yards potentially creates a more efficient remarketing footprint, while the BPO investment provides another avenue for MMS to increase the number of vehicles its existing operating platform can support.
The investment came during a year in which some fleet clients were also holding vehicles for longer.
MMS said both the written-down value of its fleet assets and remarketing volumes reflected slowing client fleet replacement cycles. Remarketing units were lower than the previous year, although remarketing yield benefited from early termination fees.
Unit growth did not translate directly to earnings growth
While vehicle numbers and clients increased, the financial performance of AMS was more mixed.
Revenue increased 1.3% to $188.4 million, but operating income declined 1.7% to $51.7 million. EBITDA fell 4.8% to $27.7 million, while AMS UNPATA decreased 7.1% to $17.7 million.
Operating margin remained high at 53.6%, although it was down from 55.3% in FY25.
The results therefore show a fleet operation that is adding customers and vehicles while simultaneously dealing with slower replacement cycles and investing in changes intended to improve future efficiency.
More capacity for future fleet growth
MMS has not provided a specific FY27 fleet-unit growth target, but its broader outlook points to further investment in distribution and operational capability.
The company said it plans to continue delivering productivity gains and use some of those benefits for “selective reinvestment in broadening sales capability and enhancing customer value propositions”.
It has also identified a shifting preference towards EVs in both novated leasing and fleet as part of the environment supporting future business growth.
For Fleet Managers, the more interesting part of the FY26 AMS result may therefore be the change occurring underneath the headline vehicle number.
Fleet units increased modestly, but managed-only vehicles grew much faster, new clients were added and the number of assets handled per employee improved considerably.
Combined with the BPO investment and car-yard consolidation, MMS appears to be building additional operating capacity around its fleet management platform. The challenge in FY27 will be converting the growth in customers and managed vehicles into stronger earnings while fleet replacement cycles and remarketing conditions continue to change.
