Why this ASX financial stock is moving higher today

FleetPartners Group Ltd (ASX: FPR) shares are starting the week on the front foot.

At the time of writing, the FleetPartners share price is up 3.02% to $3.07.

The latest gain takes the ASX financial stock's rise in 2026 to around 9%.

FleetPartners provides vehicle leasing, fleet management, and salary packaging services across Australia and New Zealand.

Investors are responding to the company's third-quarter business update released this morning.

Here's what FleetPartners reported.

New business growth picks up

FleetPartners said new business written rose 8% during the 9 months to June compared with the same period last year.

Growth accelerated during the third quarter, with new business written up 24% from a year earlier. The company wrote $246 million of new business during the quarter.

FleetPartners also completed $14 million of sale-and-leaseback transactions, while its June pipeline was 27% above the average level recorded during the first half.

The stronger result has prompted management to upgrade its FY26 new business written outlook from marginal growth to high-single-digit growth.

The company said the economic environment remains challenging, but new customer wins, contract renewals, and continued growth from smaller fleet customers are supporting the pipeline.

Core income continues to rise

Assets under management or financed (AUMOF) increased 6% year to date, while core income grew 7%.

FleetPartners had around 67,000 funded vehicles at the end of June, up 2% from March.

The novated leasing business also performed well, with new business written rising 20% from the prior corresponding period.

Management said stronger electric vehicle demand, increased sales activity, and the acquisition of Remunerator supported the growth.

The company still expects AUMOF to grow at a mid-single-digit rate in FY26, while its core margin should remain relatively stable.

Used-car market weighs on lease-end income

FleetPartners sold 1,618 vehicles during the quarter, a 31% reduction from the previous quarter. End-of-lease income came in at $8 million, while profit per unit fell to $4,951.

The company chose to hold back vehicles rather than accept weaker prices in a softer used-car market. Inventory increased by 448 units during the quarter as a result.

FleetPartners expects sales volumes and lease-end income to improve in the fourth quarter as the winter slowdown eases. However, lease-end income is still expected to remain below the levels recorded in the first two quarters.

Why are FleetPartners shares rising?

The upgrade to FY26 new business written is helping drive today's gain.

FleetPartners is also growing its funded asset base and core income, while its pipeline remains well ahead of the first-half average.

The used-car market is still weighing on lease-end income, although management avoided selling more vehicles into weaker pricing.

The final quarter will show whether better disposal volumes can lift lease-end income as management expects.

The post Why this ASX financial stock is moving higher today appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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