2025 net revenue reached a record of $1.2 billion, driving record adjusted diluted EPS2 and adjusted diluted free cash flow ("FCF") per share2
Moderation in full-year expense1,2 growth supported operating margin expansion to 56.2% and +2.1% operating leverage, underpinning adjusted return on equity2 of 17.9% in 2025
Strong client demand reflected in record order volumes of $6.2 billion, a solid committed order pipeline, with vehicles under management ("VUM") increasing 3% year-over-year to 1.56 million
Advanced digital strategy through the acquisition of Car IQ, Inc. ("Car IQ"), a pioneer in vehicle-based payments, which closed on December 31st, 2025
Repurchased 5.4 million common shares under its normal course issuer bid ("NCIB") in 2025 for total consideration of approximately $120 million
Raises common dividend by 15% from CAD$0.52 to CAD$0.60 per share annually
Introducing 2026 Financial Guidance, including targets of 8% to 10% net revenue growth, positive operating leverage, and strong growth across adjusted operating income2, adjusted diluted EPS2, and adjusted diluted free cash flow per share2
TORONTO, Feb. 24, 2026 /CNW/ - Element Fleet Management Corp. (TSX:EFN) ("Element" or the "Company"), the largest publicly traded, pure-play automotive fleet manager in the world, today announced financial and operating results for the three months ended December 31, 2025 and for full-year 2025. The following table presents Element's selected financial results.
Q4 2025
Q3 2025
Q4 2024
QoQ
YoY
2025
2024
YoY
In US$ millions, except percentages and per share amount
%
%
%
Selected results - as reported
Net revenue
313.4
306.4
270.9
2 %
16 %
1,185.5
1,087.6
9 %
Pre-tax income
89.7
159.7
121.4
(44 %)
(26 %)
529.3
513.6
3 %
Pre-tax income margin
28.6 %
52.1 %
44.8 %
n/m
n/m
44.6 %
47.2 %
(3 %)
Earnings per share (EPS) [diluted]
($0.15)
$0.31
$0.23
(148 %)
(165 %)
$0.69
$0.95
(27 %)
Adjusted results1,2
Adjusted net revenue2
313.4
306.4
270.9
2 %
16 %
1,185.5
1,087.6
9 %
Adjusted operating income (AOI)2
175.5
177.7
143.3
(1 %)
22 %
665.9
601.2
11 %
Adjusted operating margin2
56.0 %
58.0 %
52.9 %
(200 bps)
310 bps
56.2 %
55.3 %
90 bps
Adjusted EPS2 [diluted]
$0.33
$0.33
$0.27
(1 %)
24 %
$1.24
$1.10
13 %
Other highlights:
Adjusted free cash flow per share2(FCF/sh) - diluted
$0.39
$0.42
$0.30
(7 %)
30 %
$1.57
$1.36
15 %
Originations
1,351
1,722
1,498
(22 %)
(10 %)
6,477
6,732
(4 %)
Vehicles under management
1.555
1.530
1.517
2 %
3 %
1.555
1.517
3 %
Adjusted ROE2
18.6 %
18.8 %
15.4 %
(20 bps)
320 bps
17.9 %
16.0 %
190 bps
1.
One-time costs in 2025 totaled $70 million, of which $2 million and $4 million were incurred in Q3 and Q4 2025, respectively in connection with the development of new funding structures to optimize leverage, enhance returns, and expand funding capabilities, $52 million related to intangible asset impairment, $9 million related to costs associated with the Car IQ acquisition and $2 million in impairment charges for property-related assets in Q4 2025. In 2024, strategic project costs totaled $6 million, in connection to the leasing initiative in Ireland and $7 million in one-time costs related to the Autofleet acquisition. These costs for the quarterly periods in the above table were as follows: Q4 2025 ($68 million), Q3 2025 ($2 million) and nil in Q4 2024.
2.
Adjusted results are non-GAAP or supplemental financial measures, which do not have any standard meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the "IFRS to Non-GAAP Reconciliations" section in this earnings release. The Company uses "Adjusted Results" because it believes that they provide useful information to investors regarding its performance and results of operations.
"Element's performance in 2025 reflects consistent growth across the business and the continued execution of our strategy," said Laura Dottori-Attanasio, Chief Executive Officer of Element. "We saw strong client engagement across our markets and made meaningful progress advancing our technology platform capabilities, including the acquisition of Car IQ, while maintaining focus on both near-term results and long-term objectives."
Dottori-Attanasio continued, "During the year, we sharpened our strategic focus, delivered for our clients, and improved the scalability of the business. Throughout this progress, we remained focused on disciplined execution, reinforcing our commitment to delivering value for our shareholders and supporting sustainable growth."
Net revenue growth
The Company generated $1.2 billion in net revenue in 2025, an increase of $98 million or 9% from 2024 ("year-over-year"), supported by solid performance across all revenue categories.
In Q4 2025, net revenue increased by $43 million or 16% compared with Q4 2024, driven by strong syndication and net financing revenue. Net revenue grew by $7 million or 2% from Q3 2025 ("quarter-over-quarter") to $313 million, reflecting strength in services and syndication revenue.
Service revenue
Element's largely unlevered services revenue continues to underpin the Company's capital-light business model and long-term growth strategy, and remains a key component driving the improvement in return on equity.
In 2025, services revenue increased by $27 million, or 5% year-over-year to $623 million. This was driven by increased penetration and utilization rates of our service offerings from new and existing clients. As previously disclosed, Q1 2024 benefited from $7 million in certain items. Excluding this amount, 2025 services revenue would have been 6% higher than 2024.
Q4 2025 services revenue of $163 million increased by $1 million or 1% compared with Q4 2024, and increased by $7 million or 4% quarter-over-quarter, driven by ANZ, Autofleet, and VUM partly offset by rate and mix effects.
Net financing revenue
Net financing revenue in 2025 totaled $498 million, an increase of $49 million or 11% year-over-year.
In Q4 2025, net financing revenue grew $26 million or 25% year-over-year to $129 million, driven by higher net earning assets in the U.S. and Mexico, higher gains on sale ("GOS") in Mexico, as well as the continued execution of the Company's strategic leasing initiatives. The increase was further supported by funding efficiencies, which helped offset the higher financing costs associated with the preferred share redemptions (previously recorded below the AOI line) and the incremental debt related to the Autofleet acquisition in October 2024.
Net financing revenue modestly decreased by $1 million or 1% from Q3 2025, primarily reflecting higher provisions for credit losses related to client-specific credit activity and seasonally lower GOS in the fourth quarter. This was partly offset by lower funding costs associated with the Company's ongoing funding initiatives.
Syndication volume
The Company syndicated $2.4 billion in 2025 and $666 million in Q4 2025, representing year-over-year declines of $1.1 billion or 31%, and $369 million or 36%, respectively. Syndicated volumes in the prior year benefited from a $346 million bulk syndication of a Canadian lease portfolio at a lower average yield, undertaken to diversify funding sources.
Despite lower syndicated asset volumes year-over-year, syndication revenue in 2025 increased to $64 million, up $21 million or 50%. In Q4 2025, syndication revenue totaled $21 million, an increase of $15 million compared with Q4 2024. This growth primarily reflects a more favourable client mix, the reinstatement of 100% bonus depreciation in July 2025, and the absence of the lower-yielding Bulk Sale completed in the prior year.
On a quarter-over-quarter basis, syndication revenue was up by $1 million or 5%, driven by a $34 million or 5% increase in syndicated assets from Q3 2025.
Adjusted operating expenses
Adjusted operating expenses of $520 million in 2025 increased by $33 million or 7% year-over-year, driven by strategic investments to support future growth and operational scalability, including technology modernization and product expansion initiatives, along with higher professional and software costs.
In Q4 2025, adjusted operating expenses were $138 million, representing an increase of $10 million or 8% compared with Q4 2024, and an increase of $9 million or 7% compared with Q3 2025. These increases reflect the same strategic investment drivers as the full-year.
Adjusted operating income and adjusted operating margins
AOI reached $666 million in 2025, an increase of $65 million or 11% year-over-year, resulting in a margin of 56.2%. AOI in Q4 2025 rose to $176 million, up $32 million or 22% compared with Q4 2024, with a margin of 56.0%. The year-over-year improvements were supported by higher revenues.
On a quarter-over-quarter basis, AOI was down by $2 million or 1%, primarily due to higher expenses incurred in the quarter, as discussed in the adjusted operating expenses commentary above.
Q4 2025 Non-Recurring Items
To arrive at the Adjusted results, the Company adjusts for non-recurring items that have impacted the Reported results. Several non-recurring items impacted the Reported Q4 2025 results and are detailed below. Management believes that these non-recurring items did not have a material effect on the financial position of the Company, and that the Adjusted results are more indicative of the underlying business performance.
$132 million partial derecognition of deferred tax assets, a non-cash adjustment driven by an updated jurisdictional probability outlook, aligned with the Company's global funding and capital structure;
$52 million write-off of a legacy ordering platform, a non-cash adjustment resulting from the continued transition to the Autofleet technology platform;
$9 million of acquisition-related and restructuring costs incurred in connection with the Car IQ acquisition;
$5 million tax reserve update, reflecting a one-time reassessment of historical tax positions following recent audit activity;
$4 million in set-up costs associated with the development of new funding structures to optimize leverage, enhance returns, and expand new funding capabilities; and
$2 million in impairment charges, a non-cash item associated with the consolidation of the Company's Toronto and Mississauga office locations
Originations
The Company originated $6.5 billion of assets in 2025, a decrease of $0.3 billion or 4% from 2024. In Q4 2025, originations totaled $1.4 billion, down $147 million or 10% year-over-year, and $371 million or 22% quarter-over-quarter. The decline was driven by the cumulative impact of seasonal softness in client ordering during the summer months, in combination with later-year model availability and mix, resulting in extended delivery timelines for originations.
Despite lower originations, order volumes reached record levels of $6.2 billion in 2025 and $2.0 billion in Q4 2025, indicating strong underlying demand and positive momentum for future originations.
The table below sets out the geographic distribution of Element's originations for 2025 and 2024.
(in US$000's for stated values)
December 31, 2025
December 31, 2024
$
%
$
%
United States and Canada
4,916,846
76.0 %
5,206,339
77.3 %
Mexico
1,142,858
17.6 %
1,035,249
15.4 %
Australia and New Zealand
417,134
6.4 %
489,960
7.3 %
Total
6,476,838
100.0 %
6,731,548
100.0 %
Adjusted free cash flow per share and returns to shareholders
On an adjusted basis, the Company generated $1.57 in diluted FCF per share in 2025, up $0.21 or 15% from $1.36 in 2024. In Q4 2025, diluted FCF per share was $0.39, up 30% year-over-year and down 7% quarter-over-quarter. The decline from Q3 2025 reflects timing, with pull forward of certain lease-related costs and a greater portion of sustaining capital investments incurred in the quarter. On a full-year basis, our total capital investment spend was $71 million, a decrease of 8% compared to the prior year.
During 2025, the Company returned $269 million of cash to shareholders through common share dividends ($149 million) and common share repurchases ($120 million).
Common dividend and share repurchases
On February 24, 2026, the Board of Directors (the "Board") authorized and declared a quarterly cash dividend of CAD$0.15 per common share of Element for the first quarter of 2026, representing a 15% increase to its common dividend (from CAD$0.52 to CAD$0.60 per share annually). The dividend will be payable on April 15, 2026 to shareholders of record as at the close of business on March 31, 2026.
The Company's common dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).
In furtherance of the Company's return of capital plan, Element renewed its normal course issuer bid (the "NCIB") for its common shares. Under the NCIB, the Company has approval from the TSX to purchase up to 39,930,568 common shares during the period from November 20, 2025, to November 19, 2026. The Company intends to remain active under its NCIB in 2026. The actual number of the Company's common shares, if any, that may be purchased under the NCIB, and the timing of any such purchases, will be determined by the Company, subject to applicable terms and limitations of the NCIB (including any automatic share purchase plan adopted in connection therewith). There cannot be any assurance as to how many common shares, if any, will ultimately be purchased pursuant to the NCIB. Any subsequent renewals of the NCIB will be in the discretion of the Company and subject to further TSX approval.
During 2025, the Company purchased 5,366,200 common shares for cancellation under its NCIB at a volume weighted average price of CAD $32.10. During Q4 2025, the Company purchased 1,294,600 common shares under its NCIB, for cancellation at a volume weighted average price of CAD $36.64. During January and up to February 23, 2026, the Company purchased 1,351,200 common shares under its latest NCIB, for cancellation at a volume weighted average of CAD $34.57.
Element applies trade date accounting in determining the date on which the share repurchase is reflected in the consolidated financial statements. Trade date accounting is the date on which the Company commits itself to purchase the shares.
Debt-to-capital leverage ratio
Commencing Q4 2024, the Company changed its banking covenants from a tangible leverage ratio ("TLR") to debt-to-capital, which the Company regards as a more meaningful measure of its leverage. At December 31, 2025, the Company's debt-to-capital ratio was 76.9% (December 31, 2024 74.1%), within the target range of 73% to 77%.
The Company remains committed to maintaining a strong investment grade balance sheet.
Acquisition of Car IQ
On December 31, 2025, the Company completed its acquisition of Car IQ, a leader in connected vehicle payments, for a purchase price of $80 million net of working capital adjustments. Car IQ provides innovative payment technology that enables fleets to automate transactions and improve connectivity across fleet operations.
This acquisition establishes the industry's first fleet management platform with embedded vehicle-initiated payments, marking an advancement in the Company's integrated digital and mobility strategy. The transaction is expected to open new opportunities to deepen the client experience through a more automated fleet management platform.
Car IQ's financial results have been consolidated with those of the Company and $9 million of acquisition-related and restructuring costs were incurred in the quarter.
Positioning Element for Long-Term Growth
In 2025, the Company made meaningful progress on advancing its strategic and innovation priorities, and strengthening its digital capabilities while maintaining focus on enhancing client experience. These efforts were supported by focused execution on the investments undertaken since 2024 to improve efficiency and scalability, which have continued to drive margin expansion and strengthen competitive positioning.
Notable achievements include:
Accelerating its digital and mobility strategy with the rollout of Element Mobility, enhancing how clients access fleet and related solutions through an integrated digital platform. As part of this effort, the Company deepened its ecosystem through strategic partnerships with Samsara and Motus, expanding telematics, real-time data visibility, and adding reimbursement solutions across a broader range of fleet use cases.
Acquiring Car IQ's connected vehicle payments technology, advancing digitization and automation across key service offerings. Over time, Car IQ's technology is expected to support broader adoption of automated, data-driven payment and reporting capabilities across the Company's global client base.
Launching Element ONE for drivers, a mobile application that streamlines driver and fleet manager interactions, digitizes and automates core workflows, and supports greater operational efficiency across the fleet lifecycle.
Remaining on track to deliver on communicated targets of $30 to $45 million in revenue, and $22 to $37 million in AOI on a run-rate basis by 2028, along with the planned 2.5-year payback period for the centralization of the Company's U.S. and Canadian leasing in Dublin.
Guidance
Full-Year 2025 Guidance
Element delivered full-year 2025 results within or above the high-end of its guidance ranges, with the exception of originations, as previously communicated. The following table highlights our full-year 2025 Guidance compared to the full-year 2025 results.
In US$, except per share amounts
Full-Year 2025 Guidance
Full-Year 2025 Actuals
Net revenue
$1.160 - $1.185 billion
$1.186 billion
