Canada's Element Fleet beats net revenue expectations on strong syndication

Element Fleet Management

25/02/2026 01:45

Overview

Automotive fleet manager's Q4 net revenue beat analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company completed acquisition of Car IQ in 2025, enhancing digital strategy

Outlook

Element projects 2026 net revenue growth of 8% to 10%

Company expects 2026 adjusted EPS between $1.40 and $1.45

Element anticipates 2026 adjusted operating income of $720 to $745 mln

Result Drivers

RECORD NET REVENUE - Element achieved record net revenue in 2025, with strong syndication and net financing revenue in Q4

DIGITAL STRATEGY - Acquisition of Car IQ, Inc. advanced Element's digital strategy, enhancing vehicle-based payments

STRONG CLIENT DEMAND - Despite lower originations, record order volumes and strong pipeline indicate robust client demand

Company press release: ID:nCNWmmHHsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Revenue
Beat
$313.40 mln
$311.91 mln (7 Analysts)
Q4 Adjusted EPS
Miss
$0.33
$0.34 (9 Analysts)
Q4 EPS
-$0.15
Q4 Adjusted Operating Expenses
$138 mln
Q4 Adjusted Operating Income
$175.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy"

Wall Street's median 12-month price target for Element Fleet Management Corp is C$42.00, about 21.9% above its February 24 closing price of C$34.46

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)