C & I LEASING PLC Q3 Result – Strong Profit Momentum Sustained Amid Strategic Balance Sheet Expansion and Operational Efficiency Gains

Executive Summary

C & I Leasing Plc delivered a resilient performance for the nine months ended September 30, 2025, maintaining strategic growth momentum across its leasing, outsourcing, and marine service businesses. Despite a challenging interest-rate environment, elevated financing costs, and FX pressures, the Group recorded healthy YoY improvement in profitability supported by higher lease income, improved collections, and stronger JV contributions.

Profit After Tax rose 11% YoY to ₦1.77 billion, while Profit Before Tax advanced 10% YoY to ₦1.94 billion, demonstrating operational stability and earnings resilience. EPS for the period stood at 57 kobo (9M 2024: 86 kobo), reflecting consistent value creation despite higher cost of funds.

Gross earnings increased 12% YoY to ₦32.47 billion, driven by sustained lease rental income and improved contract performance within outsourced and marine operating segments. Finance costs, however, rose materially on rising borrowing levels needed to support asset growth.

The Group continued strengthening its asset base, with total assets expanding 15% YTD to ₦134.0 billion, funded largely through long-term debt to underpin fleet and operational expansion.

Financial Highlights – Statement of Profit or Loss

₦’000 Q3 2025 Q3 2024 9M 2025 9M 2024

Gross Earnings 12,000,385 10,719,879 32,470,974 28,914,955

Net Lease Income 7,255,096 5,223,750 19,536,208 13,736,682

Outsourcing Income (Net) 397,866 284,712 1,173,631 884,534

Net Tracking Income 32,168 22,530 84,852 53,140

Other Operating Income 524,209 145,797 1,072,913 487,317

JV Earnings 186,225 514,090 1,006,831 1,611,761

Finance Cost (3,941,252) (2,683,055) (10,907,465) (7,201,924)

Profit Before Tax 740,995 725,980 1,944,412 1,886,027

Tax Expense (54,405) (119,895) (175,747) (292,986)

Profit After Tax 686,590 606,085 1,768,665 1,593,041

EPS (Kobo) 21 3157 86

Revenue & Operating Performance

• Gross earnings up 12% YoY — supported by stronger lease utilization and improved contract execution.
• Net lease rental income grew 42% YoY to ₦19.54 billion, reflecting higher equipment deployment and efficient operational turnaround.
• Outsourcing and tracking solutions continued steady contribution to recurring earnings.
• JV income remained supportive, albeit lower YoY due to FX and operational sharing factors.

Profitability and Margins

• PBT up 10% YoY to ₦1.94 billion – resilient operations despite macro pressure.
• PAT up 11% YoY to ₦1.77 billion – improved tax efficiency aided bottom-line growth.
• Elevated finance cost (+51% YoY) reflects rising debt and interest rates tied to asset expansion.
• Strong operating leverage helped absorb cost pressures.

Overall, earnings quality remains robust as core leasing and outsourcing activities continue to scale.

Balance Sheet Overview

₦’000 Sept 2025 Dec 2024 % Δ

Total Assets 133,993,107 116,273,357 +15%

Total Equity 46,869,074 48,152,091 -3%

Total Debt (Borrowings + Notes) 58,879,828 48,016,399 +23%

Trade Receivables 27,247,762 19,025,404 +43%

Cash 3,804,016 4,359,087 -13%

Interpretation

• Asset base expansion driven by fleet additions and lease receivables growth.
• Higher receivables reflect business expansion, but underscore need for tight working-capital discipline.
• Borrowings increased to fund fleet growth, consistent with sector capital intensity.
• Cash position moderated due to reinvestments and debt servicing.
• Equity dipped modestly due to FX translation reserve movements and growth CAPEX.

Key Ratios & Indicators

Metric 9M 2025

Revenue Growth +12%

PBT Growth +10%

PAT Growth +11%

EPS 57k

Asset Growth +15%

Debt Growth +23%

Strategic Insights

• Business scale expansion in marine and leasing fleets driving asset growth.
• Outsourcing and tracking segments continue providing recurring annuity-like income streams.
• Elevated interest costs and receivable growth signal balance-sheet leverage — requiring continued capital discipline.
• JV structure continues to enhance earnings diversification.

Strengths

• Consistent lease income and stable contract portfolio
• Strong asset base and JV contribution
• Resilient profit trajectory despite macro challenges
• Diversified leasing, marine and outsourcing services

Weaknesses

• Rising finance cost burden due to debt-funded growth
• Receivable buildup may pressure cash flows
• FX translation volatility affecting equity

Outlook

C&I Leasing is positioned for continued steady growth as fleet deployment expands and outsourcing solutions deepen market penetration. Management’s focus on cost efficiency, asset optimization, and receivable recovery will be critical to sustaining future margin strength. While debt servicing costs and inflation remain key headwinds, operational scale and long-term contract visibility support a constructive medium-term outlook.

Analyst View

“C&I Leasing continues to execute a disciplined asset-backed growth strategy with resilient profitability despite rising finance costs. Strong lease demand and JV support provide earnings stability, while proactive balance-sheet management will be essential to sustaining performance amid a high-rate environment.”

 Conclusion

The Group delivered robust 9M 2025 earnings supported by higher operating throughput and strong lease fundamentals. While cost of funds and receivable expansion warrant close monitoring, C&I Leasing’s strategic asset investments and recurring revenue streams position it for sustained performance and long-term value creation.