• Resilient performance with 5% AUMOF growth and 5% NOI pre EOL and provisions growth despite temporary disruption
• Temporary system cutover impacts being resolved, with no change to operating expense expectations
• Confidence in growth outlook underpinned by opportunities in underpenetrated segments and Accelerate program benefits

FleetPartners Group Ltd (ASX:FPR) has provided a 3Q25 trading update, highlighting the company's resilient performance despite temporary disruption from the Accelerate system cutover. The key highlights include 5% growth in AUMOF and 5% growth in NOI pre EOL and provisions compared to the prior corresponding period, demonstrating the defensiveness and cash-generative nature of the operating model. However, the Accelerate system cutover has resulted in a 17% decline in new business writings (NBW), which was impacted by a 2-week system blackout and temporary customer service disruption. FleetPartners is already seeing the benefits of operating under one brand and one integrated platform, with $6m+ of annualised cost savings delivered. The company is proactively working to resolve the temporary impacts, with no change to operating expense expectations. FleetPartners remains confident in its growth outlook, underpinned by opportunities in underpenetrated markets and the progressive realisation of Accelerate program benefits. The transition to low/no emission fleets also presents a significant opportunity for the company.

FleetPartners expects NOI pre EOL and provisions to grow in FY25, with end-of-lease (EOL) income expected to remain stronger for longer. Operating expenses are expected to increase by 2-3% in FY25, partially offset by Accelerate cost benefits. The company's tax rate is expected to be 29-30% for FY25.

Demand for Novated leases remains strong, with regulatory tailwinds continuing to positively impact demand. Used car prices have stabilized, and EOL profit per unit is expected to stay stronger for longer. The operating environment remains stable, with high tender activity, although the macroeconomic backdrop is more subdued. FleetPartners views FY25 as a transition year, with momentum expected to build into the second half of FY26 and beyond, underpinned by growth potential in underpenetrated segments and the progressive realization of Accelerate benefits.