World Omni Auto Receivables Trust 2024-B Annual Report - How They Did This Year

Let's chat about World Omni Auto Receivables Trust 2024-B. We'll break down what it is, how it's structured, and what that means for you as an investor. No jargon, just clear explanations.

This guide uses information from the Trust's annual report (Form 10-K). This report covers the fiscal year ending December 31, 2025. The Trust started operations around May 22, 2024. Key legal agreements were put in place then. The 2025 fiscal year will be its first full operating year.

1. What does this company do and how did they perform this year?

• What it does: World Omni Auto Receivables Trust 2024-B isn't a regular company. It's a special investment vehicle: an "asset-backed security" (ABS) trust. Imagine it as a basket holding many car loans. The trust collects car loan payments. It then passes that money to investors who bought its securities. This frees up cash for the original lender. It gives investors income backed by consumer debt. Legal agreements define this structure. These include the Sale and Servicing Agreement, Indenture, and Trust Agreement. They were all established around May 22, 2024. They define how the trust acquires, manages, and pays investors.
• Who's involved:
  • World Omni Financial Corp. (the "Sponsor") made these car loans. It did this mainly through its dealerships, especially Southeast Toyota Distributors. They also act as the "servicer." This means they collect car payments, manage late payments, and process payoffs. A recent report confirms World Omni Financial Corp. manages these loans well. This includes tasks outsourced to other companies.
  • World Omni Auto Receivables LLC (the "Depositor") is fully owned by the Sponsor. The Depositor buys car loans from the Sponsor. It then transfers them to the Trust. The Depositor bought all ownership shares (Certificates) in the Trust. So, the Trust connects to the Sponsor. Amendments to the Depositor's LLC Agreement (Exhibits 3.3, 3.4, 3.5) suggest internal rule changes.
  • Wilmington Trust, National Association (the "Indenture Trustee") is an independent third party. It oversees the Trust to ensure compliance. This protects investors who bought the "Notes" (another Trust investment). The Indenture Trustee protects noteholders' interests.
• Performance this year: This report covers the fiscal year ending December 31, 2025. The Trust started in May 2024. Its first full reporting year is 2025.

2. Financial performance - revenue, profit, growth metrics

This Trust doesn't have "revenue" or "profit" like a normal company. Its "performance" depends on how reliably car owners repay their loans. ABS trust investors measure performance by several factors. These include delinquency rates (late loans) and default rates (unpaid loans). They also look at prepayment speeds (how fast loans are paid off) and loss rates (actual losses after repossessions).

The filing states that standard financial sections are "Not applicable." This includes "Management’s Discussion and Analysis" and "Financial Statements." This is because it's a passive trust, not an operating business. Trusts are not measured this way.

3. Major wins and challenges this year

For this trust, a "win" means car owners pay loans on time. This leads to low late payments and defaults. A "challenge" means many defaults, causing losses for the trust and investors.

• A big "win" for investors regarding operations: The report includes compliance statements and audit reports (Exhibits 33.1, 33.2, 34.1, 34.2, 35.1). These confirm the Sponsor (servicer) and Indenture Trustee followed loan management rules. They found no major issues.
• More on the Servicer's compliance and independent check: World Omni Financial Corp. (WOFC) collects payments. It issued a "Report on Assessment of Compliance with Applicable Servicing Criteria" (Exhibit 33.1). This report covers December 31, 2025. It includes all WOFC car loan trusts (the "Platform"), including this 2024-B Trust.
  • WOFC confirmed it has complied, in all important ways, with car loan servicing rules. This means they follow procedures for collecting payments, handling accounts, and reporting.
  • They checked vendors for tasks like collections or repossessions. They found no major noncompliance by these vendors. WOFC ensures these vendors also follow the rules.
  • Crucially, PricewaterhouseCoopers LLP (PwC), an independent accounting firm, also weighed in (Exhibit 34.1). PwC reviewed WOFC's compliance assertion for the entire "Platform." This includes all World Omni car loan trusts since 2006. The review covered the year ended December 31, 2025. PwC concluded WOFC's compliance assertion is "fairly stated, in all important ways." This is a strong independent endorsement. It confirms the loan management company follows the rules.
  • Why this matters: This greatly benefits investors. It shows the company collecting payments and managing loans does its job well. Independent verification confirms this. Good operations are key for the trust to pay investors.

4. Financial health - cash, debt, liquidity

The filing states typical financial health sections are "Not applicable."

• What we do know:
  • Diversification: No single car loan (or borrower) makes up 10% or more of the Trust's loans. This is good. The Trust doesn't rely too much on one large loan. It spreads risk and lessens the impact of one borrower's default.
  • No external guarantees: No outside companies guarantee these car loan payments. Investors rely solely on the car loans' performance. They also rely on trust features like overcollateralization or reserve accounts, which absorb potential losses.
  • This investment's "health" depends on the car loans' quality. It also depends on how well the Sponsor collects payments. Compliance reports suggest proper handling. The recent compliance report reassures us. World Omni Financial Corp. manages these loans soundly. This directly helps the Trust's overall health.

5. Key risks that could hurt the stock price

The filing states "Not Applicable" for a "Risk Factors" section.

• Main risks for this investment typically include:
  • Borrower defaults: Car owners might stop loan payments. This means less money for the Trust and its investors. This is the main credit risk.
  • Economic downturns: A tough economy, rising unemployment, or tight spending can hurt. More people might struggle with car loans. This leads to higher defaults.
  • Prepayment risk: Borrowers might pay off loans early. For example, they might refinance or sell their car. This reduces total interest collected. It can impact investor returns, especially with falling interest rates.
  • Servicing issues: Poor performance by the payment collector (World Omni Financial Corp.) could hurt the Trust. However, an independent audit report from PwC (Exhibit 34.1) lessens this risk. It confirms World Omni Financial Corp. has strong procedures. It follows them "in all important ways," with independent verification.
  • Interest rate risk: Floating rate notes are sensitive to benchmark rate changes (like SOFR). These changes can affect security value or trust financing costs.
• Legal proceedings: The report does mention a lawsuit against the Indenture Trustee (Wilmington Trust, National Association). This lawsuit involves other asset-backed transactions (from Tricolor Holdings, LLC). It does not directly relate to this specific World Omni Trust or its sponsors. The filing states no other major lawsuits are pending. This applies to World Omni Financial Corp., the Depositor, or this Trust.
• Potential future changes: An "Omnibus Amendment to Sale and Servicing Agreement" (Exhibit 4.2) exists. It is dated January 13, 2026. This key agreement was amended after the fiscal year (Dec 31, 2025) and before the report was filed. Changes to servicing agreements could impact trust operations or investor returns.

6. Competitive positioning

This section is "Not applicable" in the filing. This trust doesn't "compete" like a car or tech company. Its "position" comes from the car loans' quality. It also comes from the Sponsor's (World Omni Financial Corp.) reputation. The Sponsor originates and services these loans. World Omni Financial Corp. is part of JM Family Enterprises, Inc. This large automotive company adds credibility and scale to its securitization programs.

7. Leadership or strategy changes

The filing states "Not applicable" for leadership or strategy changes. The Trust is a passive entity. It has no CEO or board making strategic decisions. Overall management and strategy come from the Sponsor, World Omni Financial Corp. The Sponsor originates and services the loans. The Depositor, which owns the Trust, is its fully-owned subsidiary. This clarifies the structure and who manages the assets. Michael Hollis, Group Vice President and Assistant Secretary of World Omni Financial Corp., signed the report. He is the senior officer for servicing. This highlights the servicer's key role.

8. Future outlook

This section is "Not applicable" in the filing. For this trust, the future depends on the economy, car loan payments, and interest rate trends. Positive compliance reports for 2025 indicate sound operations. This is crucial for the trust's future performance. The "Omnibus Amendment" (mentioned in risks) could also affect future trust operations.

9. Market trends or regulatory changes affecting them

This section is also "Not applicable" in the filing. General market trends affect the underlying car loans and trust performance. These include interest rates, car sales, credit health, and used car values. New auto lending regulations (e.g., from the CFPB) also affect it. Investors typically monitor these economic and regulatory factors themselves. This helps them assess the impact on their investment.

To sum it up for investors, World Omni Auto Receivables Trust 2024-B is a vehicle for investing in car loans. This report highlights the strong operational compliance of World Omni Financial Corp., the company managing these loans, a fact independently confirmed by PwC. This operational reliability is a significant positive for the Trust. While traditional financial metrics aren't applicable, understanding the quality of the underlying car loans and monitoring broader economic trends, especially those affecting consumer credit, remains crucial for assessing this investment.