From GlobeNewswire.: 2025-02-26 17:01:00

Element Fleet Management Corp. reported record 2024 net revenue of $1.1 billion, driving record adjusted operating income, earnings per share, and free cash flow per share. The performance was underpinned by an 18% increase in services revenue and a 9% increase in net financing revenue. The company reaffirmed 2025 guidance for net revenue growth of 6.5 to 8.5%.

The strong performance in 2024 allowed for strategic investments to position the company for future success. Client demand, a growing pipeline, and a high-recurring-revenue business model are expected to drive continued growth across key financial metrics. The company’s full-year adjusted operating margins stayed within the guidance range.

Strategic project costs totaling $20 million were incurred, with $14 million in 2023 and $6 million in 2024. Adjusted results, which exclude these costs, showed a strong performance. The company uses adjusted results as they believe it provides useful information to investors regarding performance and results of operations.

CEO Laura Dottori-Attanasio highlighted the company’s digital-first mindset and commitment to operational excellence, which allowed for accelerated strategic investments to enhance the client experience. The company expects expense growth to moderate considerably in 2025 as the benefits of investments materialize and operational efficiencies drive success.

Element Fleet Management Corp. saw 2024 net revenue grow 13% over 2023, reaching $1.1 billion. This growth was led by double-digit services revenue growth and higher net financing revenue. Q4 2024 net revenue increased by 11% year-over-year, largely due to robust services revenue growth. Service revenue increased by 18% year-over-year in 2024, driven by higher penetration and utilization rates. In 2024, Element achieved record net revenue of $1.1 billion, leading to record adjusted operating income and adjusted earnings per share. Syndication volume increased by 40% to $3.5 billion, with Q4 2024 seeing a syndication of $1.0 billion. Syndication revenue decreased by 6% in 2024 due to a bulk syndication of a Canadian lease portfolio and setup costs. Adjusted operating income reached $601 million, resulting in adjusted EPS of $1.12 in 2024, a 14% increase year-over-year. Q4 2024 saw an increase of $8 million in AOI, with an adjusted operating margin of 52.9%. Element generated $6.7 billion in originations in 2024, a 6% increase year-over-year. The company returned $336 million to shareholders through dividends and buybacks in 2024. In Q1 2025, Element declared a quarterly cash dividend of CAD$0.13 per common share and renewed its normal course issuer bid for common shares. In 2024, Element achieved record net revenue of $1.1 billion, driving record adjusted operating income and earnings per share. The company prioritized strategic investments to enhance client experience, operations digitization, and team strengthening, achieving an 18% increase in services revenue and 9% increase in net financing revenue. Element also repurchased shares totaling $11 million in 2024.

Element acquired Autofleet in 2024 to accelerate digitization and automation efforts, enhance client experience, and drive operational scalability. Notable achievements include centralizing leasing operations in Ireland, establishing strategic sourcing in Singapore, and launching an Acceleration Office for strategic initiatives. The company introduced an Insurance Risk solution in partnership with Hub International Limited to transform fleet insurance management.

Element delivered 2024 results within or above guidance ranges, with net revenue reaching $1.088 billion and adjusted operating income hitting $601 million. The company expects continued growth in 2025, with net revenue projected at $1.160 – $1.185 billion. Element aims to achieve positive operating leverage in 2025 and realize benefits from investments made in 2024. The company anticipates headwinds from currency depreciation, increased interest expenses, and changes in trade agreements. In 2024, Element reported record net revenue of $1.1 billion, boosting adjusted operating income, earnings per share, and free cash flow per share. Services revenue increased by 18%, and net financing revenue rose by 9%. The company simplified its capital structure by redeeming preferred shares, with 404.5 million common shares outstanding as of December 31, 2024.

Element established a new strategic funding relationship with Blackstone, involving Canadian fleet lease receivables valued at approximately $346 million. This move optimizes the company’s funding profile, supports growth, and diversifies funding sources. While initial setup costs impacted yield, future syndication yields are expected to improve.

Transitioning from tangible leverage ratio to debt-to-capital ratio, Element now prioritizes reporting debt-to-capital metrics. The company targets a debt-to-capital ratio between 73% to 77%, with the ratio at 74.1% as of December 31, 2024. The company maintains a strong investment grade balance sheet with a TLR of 7.56:1.

A conference call to discuss the financial results will be held on February 27, 2025. The company’s audited financial statements are prepared in accordance with IFRS, with key operating ratios and per share information presented for the three- and twelve-month periods ended December 31, 2024. Non-GAAP measures are used to provide investors with additional insights into the company’s performance. Element Fleet Management reported a record 2024 net revenue of $1.1 billion, leading to record adjusted operating income and earnings. The 18% increase in services revenue and 9% increase in net financing revenue contributed to their success. Adjusted EPS for the year ended was $1.12 and adjusted net income was $450,871.

Adjusted net revenue for the year ended was $1.1 billion, with adjusted operating income of $601,230. The adjusted operating margin was 55.3%. Adjusted EPS for the year was $1.10 and adjusted net income was $450,871. The company’s total net debt was $7.9 billion for the year ended.

Adjusted operating expenses were $486,330 for the year ended, with a decrease in operating expenses due to adjustments for share-based compensation and strategic initiatives costs. Adjusted operating income was $601,230, reflecting a successful financial performance in 2024.

After-tax adjusted operating income attributable to common shareholders was calculated after deducting cumulative preferred share dividends for the period. Element Fleet Management is the largest publicly traded automotive fleet manager in the world, offering sustainable mobility solutions to optimize fleet performance. Their services cover everything from vehicle acquisition to decarbonization efforts.

Element Fleet Management provided forward-looking statements about their business based on current expectations and future events. As a leader in fleet management solutions, they aim to maximize client fleets for improved efficiency and performance. For more information, visit their website.



Read more at GlobeNewswire.:: Element Reports Fourth Quarter and Record 2024 Financial