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

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

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

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