Canada's Element Fleet Q2 adjusted EPS miss estimates, to cut jobs

Element Fleet Management

05/08/2026 22:22

Overview
Canada fleet management firm's Q2 net revenue and adjusted EPS missed analyst expectations
Company reaffirmed all full-year 2026 guidance ranges
Company to cut workforce by 8%, targeting $20 mln annualized savings

Outlook
Element reaffirms all full-year 2026 guidance ranges
Company expects full-year sustaining capital expenditures to remain broadly consistent with prior-year levels
Element expects year-over-year headwind from a single client to moderate through the rest of 2026

Result Drivers
SERVICES REVENUE - Co said 8% services revenue growth was driven by a 3% increase in vehicles under management and higher services revenue per vehicle
SYNDICATION REVENUE - Higher year-over-year syndication revenue reflected increased syndicated volumes and reinstatement of 100% bonus depreciation, though sequential revenue fell as funding mix shifted to equity residual program
OPERATING EXPENSES - Adjusted operating expenses rose 10% year-over-year due to higher depreciation, inflation, and investments in strategic initiatives, including the Car IQ acquisition and Waymo partnership

Company press release: ID:nCNWqrygGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Revenue
Miss
$316.60 mln
$320.44 mln (8 Analysts)
Q2 Adjusted EPS
Miss
$0.34
$0.35 (10 Analysts)
Q2 EPS
 
$0.28
 
Q2 Adjusted Operating Income
 
$176.90 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$41.00, about 27.5% above its August 4 closing price of C$32.16
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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(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.)