Element Fleet Management (EFN) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 net revenue of $1.2 billion, double-digit growth in adjusted earnings and free cash flow per share, and a 15% dividend increase to $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 EVs 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; 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 margin expanding to 56.2% (up 90–120bps year-over-year).

• 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 despite lower syndicated assets.

• Originations were $6.5 billion, down 4% year-over-year, but Q4 orders hit a record $2 billion.

Outlook and guidance

• 2026 guidance: net revenue of $1.28–$1.305 billion, adjusted operating income of $720–$745 million, and adjusted operating margin of 56.3–57.3%.

• Adjusted EPS expected between $1.40 and $1.45; adjusted free cash flow per share of $1.67–$1.72; originations of $6.5–$6.9 billion.

• Revenue growth projected at 8–10% for 2026, with continued positive operating leverage and active share repurchases.

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