Element delivered a “year of record performance” in FY2025 with net income of $1.2B (+9%), adjusted EPS of $1.24 (+13%) and adjusted FCF of $1.57 (+15%), share repurchases of 5.4M and Annual profit increased by 15% to $0.60.
The agency was released 2026 Guide For net revenue of $1.28B–$1.305B, adjusted earnings of $6.5B–$6.9B, adjusted operating income of $720M–$745M and adjusted EPS of $1.40–$1.45, adjusted FCF of $1.67–$1.72 per share.
Technology and mobility remain priorities—autofleet integration, the Element One app and a 36% increase in EVs under management (~129,000)—and acquisitions Car IQ Adds payment capabilities to vehicles, expected to decrease slightly in 2026 but moderate in 2027.
Element Fleet Management Corp. Are you interested? Here are five stocks we like best.
Element Fleet Management (TSE:EFN) reported its fourth-quarter and full-year 2025 earnings year with what management described as a “year of record performance,” supported by continued investment in technology, expanding customer activity, and growth across key revenue lines. The company also raised its annual common dividend by 15% and provided 2026 guidance that calls for continued revenue growth and further gains in adjusted earnings and free cash flow per share.
CEO Laura Duttori-Atanasio said 2025 delivers record net income and double-digit growth in both adjusted earnings and free cash flow per share. Management cited an adjusted return on equity of 17.9%, which it attributed to the company’s capital-light model. Element increased its annual common dividend by 15% to $0.60 per share, citing cash generation and confidence in its outlook.
→ Top Fake: Buying Chinese Stocks After Dominion Sinks
Regarding customer performance, Dottori-Attanasio said Element added 156 new customers in 2025, continued to convert self-managed fleets, and completed more than 1,000 “wallet expansion engagements” with existing customers. She also said the Strategic Advisory Services team has identified more than $1.6 billion in customer fleet cost savings opportunities, nearly half of which have already been implemented.
Chief Financial Officer Heath said net income for 2025 totaled $1.2 billion, up 9% year-over-year, with strength “across all of our revenue streams.” Regarding capital allocation, he said Element repurchased 5.4 million shares at an average price of $32.10 during 2025, returning $269 million to shareholders through dividends and buybacks — about 43% of adjusted free cash flow. Adjusted free cash flow per share rose 15% to $1.57, while capital expenditures were $71 million, which management described as “good availability.” Element ended the year with a debt-to-capital ratio of 76.9% within its target range.
→ Market Beat Weekly Review – 02/23 – 02/27
Heath broke down the 2025 results by revenue stream. Services revenue was $623 million, a 5% year-over-year increase, which he attributed primarily to increased penetration and usage across the customer base. He noted that vehicles under management (VUM) grew by 3% during the year and said that the revenue impact is building over time with onboarding and implementation progress, which the company expects to support service growth in the coming quarters.
Net financing income (NFR) totaled $498 million, up 11% year-over-year, driven by lease and financing efficiencies, higher sales profitability in Mexico, and growth in net income assets. NFR’s original yield was 4.73%, widening 35 basis points over 2024.
→ Home Depot and Lowe’s: Income Dept Shopping
Syndication revenue was $64 million, up 50% year-over-year, despite a $1.1 billion decrease in syndicated assets. Heath attributed the increase largely to a favorable mix, bonus depreciation recovery, and ongoing demand for elemental syndication products.
Initial earnings in 2025 were $6.5 billion, down 4% year-over-year and below prior guidance, which management said was previously announced. Heath attributed seasonal softness in the summer order and the decline in late-year model availability to a holdover from deliveries in future periods, while stressing that demand remains strong. Order volume reached record levels of $2 billion in the fourth quarter and $6.2 billion for the year, which the company said provided a “good outlook” for the first half of 2026.
In the Q&A, Heath said initialization can change based on customer behavior and should be viewed against other metrics, including VUM growth, net income assets, and yield. He also noted that the delivery cycle has been extended moderately for vehicles that require an upgrade, prompting some fourth-quarter orders in 2026.
Management said the reported fourth-quarter results were impacted by several non-recurring items, most of which were non-cash. Heath listed the largest:
A $130 million deferred tax asset adjustment related to new litigation benefit expectations;
a $52 million write-down of the legacy ordering platform as an element transition to the Autofleet technology platform;
$9 million in restructuring and acquisition-related costs related to the Car IQ deal, which closed on December 31.
Heath said these items were excluded from adjusted results and were not indicative of actual operating performance. Regarding the deferred tax, he told analysts that it reflects a partial recognition of a historical deferred tax asset related to changes in the funding structure of internal companies. It does not reflect an impairment in operating performance, has no impact on effective or cash tax rates, and will not affect the company’s ability to utilize tax losses in the future, he said.
On an adjusted basis, operating expenses were $520 million in 2025, up 7%, reflecting ongoing investments in digitization, distribution, and product expansion. Adjusted operating margin was 56.2%, up 90 basis points year over year, and Element reported adjusted EPS of $1.24, up 13%.
For the fourth quarter alone, Heath said adjusted EPS was $0.33, up 24% year over year, on record quarterly revenue of $313 million. Service revenue in the quarter was a record $163 million. Operating profit in Q4 was 7.3%, and adjusted ROE was 18.5%, he said.
Dottori-Attanasio emphasized technological innovations and product development as key strategic priorities. She said Element’s Dublin lease initiative remains on track to meet 2028 run rate targets of $30 million to $45 million in revenue and $22 million to $37 million in adjusted operating income, with a two-and-a-half year payback target.
On electrification, she said electric vehicles under management increased 36% year-on-year to around 129,000 vehicles. Element’s charging platform is live in the US and Canada, with plans to expand globally in 2026 through new partnerships.
The CEO also described progress in “Element Mobility,” which focuses on connected mobility including telematics, route optimization, and proximity solutions. She said the Autofleet integration has allowed Element to bring more improvements in-house, lower construction costs, and increase agility. Element launched its Element ONE driver app in March and expects a wider rollout through 2026, while its digital ordering platform remains on track with an initial MVP targeted for the first half of 2026.
In December, Element acquired Car IQ, adding embedded, vehicle-initiated payment capabilities. In the Q&A, Dottori-Attanasio said Car IQ enables vehicles to act as payment nodes to reduce fraud, modernize billing, and help customers capture operational efficiencies. She pointed to the significant interest shown in a customer case where fuel consumption was reduced by nearly 14% by eliminating card misuse, and said Element plans to integrate Car IQ into the Element ONE and Driver app. Financially, she said Labor IQ is expected to be “slightly weaker” in 2026 due to implementation and turnover, with a “modest increase” in adjusted operating income and free cash flow bases projected in 2027. She later added that Element intends to offer Work IQ to existing and new customers, emphasizing customer choice and noting Element’s long-standing partnership with WEX.
The management also discussed partnerships with Samsara and Moots. Dottori-Attanasio said the partnership was aimed at adding services for customers and said Element already activated units and customers through referral programs. She reiterated an expectation that by 2026 these partnerships would contribute to the “median unit digital income”.
On insurance, Dottori-Attanasio said Element’s January 2025 launch of Element Risk Solutions in partnership with Hub “missed the mark”, citing gaps in product offering and go-to-market, and an underestimation of complexity. She said the company still sees an opportunity but has put it on the “back burner” while it makes regulatory changes and refines strategy ahead of the relaunch; Element continues to sell the product.
For 2026, Heath guided for net income of $1.28 billion to $1.305 billion and adjusted operating income of $6.5 billion to $6.9 billion, adjusted operating income of $720 million to $745 million and adjusted operating margin of 56.3% to 57.3%. Element expects adjusted EPS of $1.40 to $1.45 and adjusted free cash flow of $1.67 to $1.72 per share. Heath said the guidance ranges are prepared in advance of any material foreign currency fluctuations or changes in international trade agreements or the negative impact of broader political uncertainty.
Element Financial was split into two independent public companies in October 2016. The former company now owns Element Fleet Management, an international fleet management company, and ECN Capital, a commercial finance company. Element Fleet Management provides management services and financing for commercial vehicle and equipment fleets. The company’s suite of fleet management services deals with acquisitions and financing, to program management and remarketing. ECN Capital operates in three verticals of the equipment finance market in North America: Commercial and Seller Finance, Rail Financing, and Commercial Aviation Finance.
The article “Elements Fleet Management’s Q4 Earnings Highlights” was originally published by MarketBeat.
