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Yahoo
12 hours ago
- Business
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Sunrun's Return to Positive Cash Generation Could Take Time Amid Proposed End to Solar Tax Credits, RBC Says
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Yahoo
12-05-2025
- Automotive
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FleetPartners Group Ltd (ASX:FPR) (Q2 2025) Earnings Call Highlights: Navigating Growth and ...
Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FleetPartners Group Ltd (ASX:FPR) successfully completed the Accelerate program, enhancing operational leverage and scalability. The company reported strong cash generation, delivering $116 million of organic cash over the past 12 months. FleetPartners Group Ltd (ASX:FPR) achieved a double-digit increase in EPS, normalized at 13% since FY23. The company has a stable, predictable, and recurring earnings model, with 95% of NOI3 EOL provisions being annuity-like. FleetPartners Group Ltd (ASX:FPR) is positioned to capture growth in underpenetrated markets, such as corporate and small fleets, and novated leasing. The Accelerate system cutover caused temporary disruption, impacting new business writings, which were down 17% on PCP. Net debt was elevated temporarily due to internal cash funding of $41 million of leases awaiting funding. Provisions increased due to high arrears from temporary administrative delays associated with the system change. The company experienced a 3% decrease in NOI compared to the prior corresponding period. End of lease income was down 18% compared to PCP due to a decrease in the number of units sold. Warning! GuruFocus has detected 3 Warning Signs with ASX:FPR. Q: Hi guys, thanks for taking my questions. Just maybe on competition, you've commented pretty positively about the outlook for residual value. It's just what you're seeing coming through on pricing, if at all? A: Hi Tim, thanks for your question. As we look at the used vehicle pricing trends, they have stabilized over the last 6 months. We expect our end of lease results to be stronger for longer. For leases in the back book written at old RVs, they'll continue to generate outsized profits. New leases reflecting current pricing won't mature for 3-4 years, so lease profits should remain stable for the next few years. - Unidentified Respondent Q: And you see anything in the on pricing of new tenders that in terms of the underlying assumptions of what these are? A: It's probably too early in terms of current tenders, but as we run the elevated used car prices through the model, it will gradually impact residual values and lease rentals offered to customers. - Unidentified Respondent Q: Just maybe another question just on yield, can you call anything that's sort of impacting the numbers at the moment in terms of, yeah, management fees like that's rolling over and then sort of the outlook for yields thinking about sort of second half seasonality. A: We've seen margin stability at the group level, with a rolling 12-month basis at 7.38%. COVID impacts have dissipated, but Fleet AU still has elevated extensions generating management fees. This should run off over the next 12-24 months, leading to more stability and organic improvements in margins. - Unidentified Respondent Q: Yeah, discretion on impairments, so are you anticipating a sort of reversal in the second half from the commentary on your sort of FI25 out expectations? A: I wouldn't guide to a reversal in the second half, but we expect provisioning to ease off as arrears return to normal levels. The growth in the balance sheet funded book, particularly the nova portion, was robust, up 30% year on year. - Unidentified Respondent Q: Just a couple of quick questions just to maybe you call that SMEs a growth opportunity. What are you seeing in Australia in terms of growth in that SME book? A: We're happy with our digital platform, which includes an online calculator for quoting. Our focus is on expanding distribution channels to increase market share in the SME space, which is more widely adopted overseas, giving us confidence in growth potential. - Unidentified Respondent For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
