Element Fleet Management (EFN) Q3 2026 earnings summary

Executive summary

• Q3 adjusted net revenue was $321M (+5% YoY); adjusted diluted EPS rose 6% to $0.35 and adjusted FCF per share increased 7% to $0.45.

• Adjusted ROE reached 20.2%, up 140 bps YoY; commercial execution and growth moderated, with U.S. and Canada performance below expectations.

• 2026 originations are expected below guidance, and other full-year metrics at or near the lower end; management is pursuing stronger sales execution and productivity.

Financial highlights

• Reported net revenue was $320.7M (+5% YoY); reported operating income was $179M (+7%) and diluted EPS was $0.33 (+6%).

• Adjusted operating income rose 2% to $182M; adjusted operating margin was 56.8%, down 120 bps YoY, as adjusted operating expenses rose 8% to $139M.

• Adjusted diluted EPS was $0.35 (+6% YoY); adjusted FCF per share was $0.45 (+7%).

• 9M adjusted net revenue reached $962M (+10%), adjusted operating income $541M (+10%), adjusted diluted EPS $1.04 (+14%) and adjusted FCF per share $1.29 (+9%).

Outlook and guidance

• 2026 guidance: adjusted net revenue $1.280B–$1.305B, adjusted operating income $720M–$745M, adjusted diluted EPS $1.40–$1.45 and adjusted FCF per share $1.67–$1.72; originations guidance is $6.5B–$6.9B.

• Originations are expected below guidance; other full-year financial metrics are expected at or near the lower end of their ranges.

• 2027 net revenue growth is expected in the low single digits excluding FX; peso translation is estimated to pose a 2%–3% headwind versus 2026 at current rates.

• ~$20M in annualized savings is targeted for 2027; expense growth is expected to moderate, supporting positive operating leverage. 2027 guidance is planned for February 2027.