Element Fleet Management (EFN) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 net revenue of $1.2 billion, double-digit growth in adjusted EPS and free cash flow per share, and a 15% dividend increase to CAD $0.60 per share, driven by strong client demand and operational execution.

• Welcomed 156 new clients, expanded over 1,000 client relationships, and identified $1.6 billion in client cost savings, with half actioned.

• Vehicles under management grew 3% year-over-year to 1.56 million, with multi-service attachment rates reaching 78%.

• Advanced digitization, electrification, and mobility initiatives, including a 36% increase in electric vehicles under management and the launch of the Element ONE app.

• Completed the Car IQ acquisition, enhancing in-vehicle payment capabilities and digital strategy.

Financial highlights

• Net revenue reached $1.2 billion in 2025, up 9–10% year-over-year; Q4 net revenue was $313 million, up 16% year-over-year.

• Services revenue was $623 million, up 5–6%; net financing revenue was $498 million, up 11%.

• Adjusted operating income rose 11% to $666 million, with a margin of 56.2%.

• Adjusted EPS was $1.24, up 13% year-over-year; Q4 adjusted EPS was $0.33, up 24%.

• Syndication revenue rose 50% to $64 million; full-year originations were $6.5 billion, down 4% year-over-year.

Outlook and guidance

• 2026 guidance: net revenue of $1.28–$1.305 billion, adjusted operating income of $720–$745 million, adjusted EPS of $1.40–$1.45, and originations of $6.5–$6.9 billion.

• Expect 8–10% revenue growth, positive operating leverage, and continued share repurchases.

• Modest accretion from Car IQ expected in 2027; partnerships with Samsara and Motus on track for mid-single digit revenue contribution in 2026.

• Continued growth expected from expanding services portfolio and increased conversion of self-managed fleets.

• Focus on digital innovation, operational efficiency, and capital returns to shareholders.