FleetCor(US:FLT)2025-11-10 21:24Financial Performance - For the three months ended September 30, 2025, net revenues were $1,172.5 million, a 13.8% increase from $1,029.2 million in the same period of 2024[115]. - Net income attributable to Corpay for the nine months ended September 30, 2025, was $805.3 million, up 6.3% from $757.8 million in 2024[115]. - Adjusted net income attributable to Corpay for the three months ended September 30, 2025, was $405.2 million, representing a 14.3% increase from $354.5 million in 2024[117]. - Total net revenues for Corpay consolidated reached $1,172.5 million, marking a 14% increase from $1,029.2 million in Q3 2024[127]. - Consolidated revenues for the three months ended September 30, 2025, were $1,172.5 million, reflecting a 13.9% increase compared to the prior period, driven by 11% organic growth[143]. - Total consolidated revenues were $3,280.2 million for the nine months ended September 30, 2025, an increase of 11.6% compared to the prior period[166]. - Operating income for the nine months ended September 30, 2025, was $1,429.6 million, reflecting a 10.1% increase from the prior period[173]. - Net income attributable to Corpay increased to $277.9 million for the three months ended September 30, 2025[155]. Segment Performance - Vehicle Payments segment generated $553.2 million in net revenues for the three months ended September 30, 2025, accounting for 47% of total revenues[121]. - Corporate Payments segment revenues increased to $409.7 million for the three months ended September 30, 2025, representing 35% of total revenues[121]. - Vehicle Payments segment reported net revenues of $553.2 million for Q3 2025, a 9% increase from $506.8 million in Q3 2024[127]. - Corporate Payments segment achieved net revenues of $409.7 million, reflecting a significant 27% growth compared to $321.9 million in the same quarter last year[127]. - Vehicle Payments revenues were $553.2 million, a 9.2% increase from the prior period, driven by organic growth of 10% and acquisitions contributing approximately $6 million[156]. - Corporate Payments revenues reached $409.7 million, up 27.3% from the prior period, primarily due to organic growth of 17% and acquisitions contributing approximately $28 million[158]. - Lodging Payments revenues decreased to $127.0 million, a decline of 5.2% from the prior period, attributed to lower emergency-related activity[160]. - Corporate Payments operating income was $474.6 million, a 31.0% increase from the prior period, supported by organic revenue growth and integration synergies[159]. Geographic Performance - The United States accounted for 49% of total revenues for the three months ended September 30, 2025, with net revenues of $575 million[126]. - Brazil's net revenues increased to $183 million for the three months ended September 30, 2025, representing 16% of total revenues[126]. - Corpay operates primarily in three geographies, with 79% of revenues generated in the U.S., Brazil, and the U.K.[118]. Tax and Regulatory Changes - The effective tax rate is subject to fluctuations based on earnings across various taxing jurisdictions, impacting overall financial performance[135]. - The "One Big Beautiful Bill Act" enacted on July 4, 2025, introduces new tax provisions that the company is currently evaluating for potential impacts on financial position[137]. - Provision for income taxes increased to $336.0 million with an effective tax rate of 29.4% for the nine months ended September 30, 2025, compared to $240.0 million and 24.1% in the prior period[177]. Investments and Acquisitions - In October 2025, the company invested approximately $578 million for about 35% equity in a limited partnership, with an enterprise valuation of approximately $1.9 billion[138]. - The company acquired 100% of Gringo for approximately $153.7 million in February 2025, increasing its controlling interest in Zapay to approximately 86%[139]. - In July 2025, the company announced a cash offer to acquire 100% of Alpha Group International plc for approximately £1.8 billion, completed on October 31, 2025[217][219]. - The acquisition of Alpha was funded through borrowings under the company's Credit Facility, without utilizing the £1.875 billion bridge term loan facility[218][219]. - The company divested a lower growth private label fuel card portfolio for approximately $60 million in July 2025, with the transaction closing in October 2025[221]. Cash Flow and Liquidity - Net cash provided by operating activities was $687.2 million, down from $1,291.9 million in the prior period, primarily due to changes in working capital[194]. - Net cash used in investing activities was $282.9 million, a decrease from $378.2 million in the prior period, due to less spending on acquisitions[195]. - Total liquidity as of September 30, 2025, was approximately $3.4 billion, consisting of $1.4 billion available under the Credit Facility and $2.0 billion in unrestricted cash[189]. - The company had $3.0 billion in borrowings outstanding on the Term Loan A and $3.1 billion on the Term Loan B as of September 30, 2025[200]. Stock and Shareholder Actions - The stock repurchase program authorized up to $9.1 billion, with $8.1 billion spent to repurchase 33,951,728 shares, leaving $1.0 billion available for future repurchases[214][215]. - Stock-based compensation expense for Q3 2025 was $27,592,000, down from $28,506,000 in Q3 2024, a decrease of 3.2%[234]. Strategic Partnerships - The company expanded its partnership with Mastercard, with Mastercard acquiring a 2.8% interest in the cross-border business for $300 million[139]. - A strategic partnership with Mastercard was expanded in April 2025, involving a $300 million investment for a 2.8% interest in the cross-border business[222].