Element Reports Fourth Quarter and Record 2025 Financial Results, Raises Common Dividend and Provides Full-Year 2026 Guidance

Executive Summary

• Element Fleet Management reported record 2025 net revenue of $1.185 billion (9% YoY growth) and adjusted diluted EPS of $1.24, both exceeding the high‑end of its prior guidance.
• The company raised its annual common dividend by 15% to CAD $0.60 per share and repurchased ~5.4 million shares for ~$120 million in 2025.
• Full‑year 2026 guidance was issued, targeting $1.280–$1.305 billion net revenue (8‑10% growth) and adjusted EPS of $1.40–$1.45, indicating continued upside momentum.

Key Details

• 2025 Financial Highlights
• Net revenue: $1.185 bn (up 9% YoY).
• Adjusted operating income: $666 m (+11% YoY); adjusted operating margin: 56.2%.
• Adjusted diluted EPS: $1.24 (+13% YoY).
• Adjusted free cash flow per share: $1.57 (+15% YoY).

• Operating leverage improved to +2.1%; ROE increased to 17.9%.

• Quarter‑4 2025 Highlights

• Net revenue Q4: $313.4 m (+16% YoY, +2% QoQ).
• Adjusted operating income Q4: $175.5 m (−1% YoY, +22% YoY margin).
• Adjusted diluted EPS Q4: $0.33 (flat YoY).

• Vehicles under management: 1.555 million (+3% YoY).

• Revenue Mix

• Services revenue 2025: $623 m (+5% YoY).
• Net financing revenue 2025: $498 m (+11% YoY).

• Syndication revenue 2025: $64 m (+50% YoY) despite a 31% decline in syndicated volume.

• Originations & Order Volume

• Originated assets 2025: $6.5 bn (‑4% YoY).

• Order volumes reached record $6.2 bn in 2025 and $2.0 bn in Q4 2025.

• Shareholder Returns

• Dividend increased to CAD $0.60 per share annually (15% increase). Quarterly cash dividend declared: CAD $0.15/share, payable 15 Apr 2026.
• NCIB renewal approved; up to 39.93 million shares may be repurchased through 19 Nov 2026.

• Shares repurchased in 2025: 5.37 million at VWAP CAD $32.10; Q4 repurchases: 1.29 million at CAD $36.64.

• Acquisition

• Completed acquisition of Car IQ on 31 Dec 2025 for $80 m (net of working‑capital adjustments). Integration added vehicle‑based payment capability and incurred $9 m of related costs.

• Leverage & Capital Structure

• Debt‑to‑capital ratio at 31 Dec 2025: 76.9% (within target 73–77%).

• Total debt: $9.54 bn; cash & restricted funds: $0.504 bn.

• Guidance – Full Year 2026

• Net revenue: $1.280‑$1.305 bn (+8‑10% YoY).
• Adjusted operating margin: 56.3‑57.3%.
• Adjusted operating income: $720‑$745 m (+8‑12% YoY).
• Adjusted diluted EPS: $1.40‑$1.45 (+13‑17% YoY).
• Adjusted free cash flow per share: $1.67‑$1.72 (+6‑10% YoY).

• Originations target: $6.5‑$6.9 bn (0‑7% growth).

• Conference Call

• Date/Time: 25 Feb 2026, 8:00 a.m. ET; webcast link provided.

Notable Quotes

“Element's performance in 2025 reflects consistent growth across the business and the continued execution of our strategy,” said Laura Dottori‑Attanasio, CEO.
“We raised our dividend and are renewing our share repurchase program to return capital to shareholders while investing in digital capabilities such as the Car IQ acquisition.”