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Fleet leasing and salary packaging company FleetPartners Group (ASX: FPR) has posted a 7 per cent increase in net profit after tax to $37.1 million in the first half of FY26, underpinned by a growing asset book and early contributions from its recent acquisition of salary packaging provider Remunerator.
The performance for the six months to the end of March has been heralded by FleetPartners as a validation of the "resilient and cash generative nature" of its operating model in the face of "uncertain and challenging macroeconomic conditions".
Assets under management or financed hit $2.4 billion, up 6 per cent, while new business written of $367 million was broadly flat, slipping 1 per cent.
Operating expenses are guided at $98.5 million to $99.5 million for the full year.
The result is the first to include a contribution from Remunerator, the salary packaging provider FleetPartners acquired in December last year for up to $40 million .
The deal, struck at 5.9 times last-twelve-months EBITDA, was designed to bolt on scale in the salary packaging segment and deepen FleetPartners' presence in the novated leasing channel.
Adding a further tailwind, FleetPartners highlights the Federal Government's policy environment for zero emission vehicles has been "highly supportive" of novated BEV (battery electric vehicle) demand.
An announcement this week from the government that there will be no changes to existing fringe benefits tax (FBT) exemption for BEVs until April 2027 provides "near-term certainty for salary packaging customers weighing up an EV through novated leasing".
From April 2027, a full FBT exemption will continue only for electric vehicles priced at or below $75,000, with a reduced 25 per cent FBT discount applying to EVs above that threshold.
From April 2029, the concession narrows further with all EVs under the luxury car tax threshold receiving only the 25 per cent discount.
The phased approach has drawn broad support from the salary packaging and EV industries, including the Electric Vehicle Council and the National Association of Legislated Salary Packaging Administrators.
For FleetPartners, the policy settings reinforce the economics of novated leasing for sub-$75,000 EVs.
It's a price bracket that captures the bulk of the market and provides a multi-year runway of demand visibility for its salary packaging and fleet management arms.
FleetPartners reports that its end-of-lease income was stable in the first half although the used vehicle market saw softening demand for ICE vehicles in recent weeks.
"Mitigating factors against temporary geopolitical impacts are supportive of the outlook, as evidenced by FleetPartners’ average sale price per unit in April 2026, which remained consistent with 1H26 levels," says the company.
The group says its business model remains resilient, with momentum expected to continue building through the second half of FY26.
"While market conditions remain challenging, the group’s outlook is unchanged, with marginal growth in NBW (new business writings) targeted for FY26," it says.
"FleetPartners is actively monitoring the evolving geopolitical environment and managing potential impacts.
"The group has no direct exposure to fuel price movements, and funding availability and liquidity remain strong, supported by diversified and well-established funding sources."
FleetPartners has declared a fully franked interim dividend of 11.9c per share.
Shares in FleetPartners closed 5.5 per cent higher at $2.70.
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