Electric vehicles are reshaping the fleet landscape, but perhaps nowhere is the shift more visible than in the financial results of Australia’s major fleet management and leasing providers. FleetPartners’ FY25 results presentation gives the industry a rare, data-backed window into how EVs are influencing portfolio performance — and why novated leasing has become the strongest engine of growth.
For Fleet Managers, Procurement Managers and business leaders navigating fleet transition decisions, the numbers offer useful insight into how leasing companies view EVs from a commercial perspective.
EVs Push Up the Financed Amount — And That’s Good for Lessors
One clear theme from the results is that EVs increase the average lease value across portfolios.
FleetPartners disclosed that EV adoption is strongest in the Novated segment, where the average lease value has hovered around $58,000 in recent quarters. Battery-electric and plug-in hybrid vehicles are materially more expensive than the typical ICE vehicle they replace, and this lifts the amount financed per contract.
From a leasing company’s perspective, higher financed values improve total income over the lease term. Combined with largely stable margins across the Group in FY25, EVs are contributing positively to the long-term annuity stream FMOs rely on.
Novated Leasing: The EV Cash Engine
FleetPartners’ results make it clear: the company sees EVs as a significant growth driver for novated leasing.
Key data points tell the story:
- 60% of all novated NBW was EVs (BEVs and PHEVs) in FY25, up from 53% the previous year.
- Novated AUMOF grew 17%, the strongest of any segment.
- Core income for Novated increased 21% year-on-year.
This performance is directly linked to the ongoing FBT exemption for zero-emission vehicles, which continues to incentivise employees to choose electric models under novated arrangements — even as broader economic confidence remains subdued.
For leasing companies, EV-focused novated leasing isn’t just a sustainability story: it’s a high-growth, high-margin line of business that is less affected by the slower replacement decisions seen in corporate fleets.
Corporate Fleets: EV Uptake Still Slow
The results highlight the contrast between novated adoption and corporate fleet behaviour.
FleetPartners reported that within corporate AUMOF:
- BEVs account for just 1% of the Australian fleet portfolio
- PHEVs account for only 2%
Despite government direction through the NVES and growing organisational sustainability commitments, corporate EV uptake remains at an early stage. Leasing companies acknowledge this gap and note that barriers still exist — infrastructure, change management, uncertainty over fit-for-purpose applications, and operational risks.
From a commercial viewpoint, this means the EV boom is still concentrated in novated leasing, not corporate fleets.
EOL Income and Residual Risk: FMOs Benefit as EV Prices Stabilise
Another insight from the results is the ongoing contribution of End of Lease (EOL) income, which totalled $61 million in FY25.
Used-vehicle prices have stabilised after the volatility of recent years, and FleetPartners expects EOL income to remain stronger through the medium term. Importantly, the company estimates around $250 million in embedded EOL income across the portfolio that will flow through over the next five years.
For fleet customers, this reinforces a truth of operating lease structures:
When residual risk is outsourced, so is the upside.
If EV residual values stabilise or outperform expectations as the market matures, leasing companies — not fleets — will capture that margin through EOL profit.
EVs Fit the Leasing Model: High Value, Long Term, Predictable
FleetPartners is explicit about how it views its business:
- 95% of core income is annuity-like
- The average lease term is 3.9 years
- 80% of leases remain on book for the entire year
- EV transition is described as a “long-term industry tailwind”
From a business-model perspective, EVs align well with this structure. They are higher-value assets with predictable servicing schedules and no fuel price exposure. When combined with government incentives on the novated side, they generate strong demand and healthier margins.
For FMOs, EVs represent both secured revenue and stable long-term cash flow — exactly the qualities investors look for in leasing businesses.
