Element Fleet Management (EFN) investor relations material

Executive summary

• Achieved record Q1 2026 net revenue of $324 million, up 17% year-over-year, with growth across all income streams and strong execution.

• Adjusted EPS rose 24% to $0.35 and adjusted free cash flow per share increased 25% to $0.45 year-over-year.

• Adjusted return on equity reached 20.3%, up 360 bps year-over-year, reflecting robust earnings growth and capital-light model execution.

• Vehicles under management increased 3% year-over-year to over 1.56 million, supported by new client wins and deeper engagement.

• Returned $94 million to shareholders in Q1 2026 through dividends and share repurchases.

Financial highlights

• Net revenue: $324 million, up 17% year-over-year; services revenue: $162 million, up 6%; net financing revenue: $138 million, up 23%.

• Syndication revenue doubled year-over-year to $24 million, driven by higher volumes and favorable client mix.

• Adjusted operating income rose 21% year-over-year to $182 million; adjusted operating margin expanded to 56.2%.

• Originations totaled $1.5 billion, down 4% year-over-year due to a client-specific reduction, but up 8% sequentially.

• Adjusted operating expenses increased 13% year-over-year, reflecting inflation, acquisitions, and investment in digitization.

Outlook and guidance

• Guidance for 2026 originations ($6.5B–$6.9B) unchanged; targeting 8–10% full-year net revenue growth and continued margin expansion.

• Expense growth rate expected to moderate in coming quarters after Q1 investments.

• Focus remains on delivering positive operating leverage, expanding operating margin and ROE, and executing on organic and digital growth initiatives.

• Continued investment in digitization and product expansion expected to support long-term growth.