Company Interview / Defensive income keeps FleetPartners on track

Key points:

Profit before amortisation around $40m, EPS up 9%, dividend 11.9c fully frankedBusiness model framed as resilient, with ~95% annuity-like core income from four-year leasesRemunerator acquisition seen as expanding novated offering and growth opportunity

Damien Berrell, chief executive of FleetPartners (ASX:FPR), states that first-half profit before amortisation is close to $40 million, up 2% on the prior period, with cash EPS up 9% to 18.5 cents, supported by an on-market buyback. Berrell highlights 6% growth in assets under management or finance to $2.4 billion, marking a seventh consecutive half of portfolio expansion. A fully franked dividend of 11.9 cents per share is declared, which Berrell frames as part of an implied dividend yield of around 13% and evidence of strong cash generation and disciplined capital management.

Berrell describes FleetPartners’ business model as resilient and defensive, underpinned by recurring, lease-based income, with around 95% of core income annuity-like and leases typically running for four years. He argues the vehicles financed are “tools of trade” and revenue-generating assets for customers, supporting performance through economic and geopolitical uncertainty. Rising fuel prices are, in his view, passed through to customers, with the group working to broaden fuel options and facilities.

The acquisition of salary packaging provider Remunerator is presented as a strategic step to build a full novated and salary packaging offering, unlocking more of the novated market. Verrall cites strong growth pipelines across large fleets, small fleets and novated segments into FY26.