Element Reports Strong Q1 2026 Results

About this update from Element Fleet Management Corporation

Amounts in US$ unless otherwise noted TORONTO, May 6, 2026 /CNW/ - Element Fleet Management Corp. (TSX: EFN) ("Element" or the "Company"), the largest publicly traded, pure play automotive fleet manager in the world and a global leader in intelligent fleet and mobility solutions, today announced financial and operating results for the three-month period ended March 31, 2026. The following table presents Element's selected financial results. "We entered 2026 with solid performance across the business and continued engagement from our clients," said Laura Dottori-Attanasio, Chief Executive Officer of Element. "During the quarter, we advanced our platform, expanded our capabilities, and delivered against our strategic priorities." Dottori-Attanasio continued, "We are building on this start to the year with a focus on disciplined growth and consistency, while continuing to deliver meaningful outcomes for our clients over time." Net revenue growth Net revenue for Q1 2026 was $324 million, an increase of $48 million or 17% from Q1 2025 ("year-over-year"), driven by growth across all revenue streams. Compared to Q4 2025 ("quarter-over-quarter"), net revenue increased by $10 million or 3%, due to higher net financing and syndication revenues. Service revenue Element's largely unlevered services revenue continues to underpin the Company's capital-light business model and long-term growth strategy, driving the improvement in return on equity. Services revenue totaled $162 million in Q1 2026, up $10 million or 6% year-over-year attributable to continued VUM expansion. Services revenue declined by $1 million sequentially. Net financing revenue For Q1 2026, net financing revenue was $138 million, an increase of $26 million or 23% compared to Q1 2025. The increase was driven by growth in net earning assets, higher gains on sale ("GOS"), along with the continued execution of the Company's strategic leasing initiatives. Partly offsetting these factors were higher funding costs from incremental acquisition-related debt and higher provisions for credit losses, related to a client-specific item. On a quarter-over-quarter basis, net financing revenue increased by $8 million or 6%, primarily due to the continued benefits of the Company's optimized leasi...

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