From GlobeNewswire: 2025-04-30 17:01:00

Element Fleet Management Corp. reported a strong Q1 2025 performance, with net revenues growing 5% year-over-year to $276 million despite a $17 million impact from foreign currency translation. Adjusted operating expenses rose by 5%, leading to a 8% year-over-year increase in adjusted EPS to $0.28 and a 9% growth in diluted free cash flow per share to $0.36. The Company’s global order backlog increased to $2 billion in Q1 2025, showcasing resilience in client order volume. Additionally, Element repurchased 2.2 million common shares for approximately $40 million during the quarter. The Company’s financial results for the three months ended March 31, 2025, highlighted consistent growth and operational resilience in a challenging market environment. In Q1 2025, Element syndicated $574 million of assets, up 21% from the previous year, but down 45% from the previous quarter due to a bulk sale of a Canadian lease portfolio. Adjusted operating expenses were $125 million, up 5% year-over-year. Adjusted operating income was $151 million, up 5% year-over-year.

Element originated $1.5 billion of assets in Q1 2025, a 2% decrease from the previous year. Adjusted free cash flow per share was $0.36, up 9% year-over-year. The company returned $77 million to shareholders in Q1 2025 through dividends and share repurchases.

The company declared a quarterly cash dividend of CAD$0.13 per common share for Q2 2025. Element renewed its normal course issuer bid to purchase up to 40,386,699 common shares. During Q1 2025, the company repurchased 2,178,000 common shares for cancellation. The debt-to-capital ratio was 74.9% as of March 31, 2025. The Company targets a range between 73% to 77% and remains committed to maintaining a strong investment grade balance sheet. A conference call to discuss results will be held on May 1, 2025, at 8:00 a.m. Eastern Time. Audited financial statements are prepared in accordance with IFRS and non-GAAP measures are used to monitor performance. Key operating ratios and per share information are provided for the three-month period ended March 31, 2025. Adjusted net revenue, operating expenses, income, and EPS are also detailed for the same period. Selected statement of financial position amounts are summarized for March 31, 2025. Adjusted operating expenses, operating income, operating margin, after-tax operating income, and adjusted net income are explained with reconciliations for the three-month period ended March 31, 2025. Non-GAAP measures are reported alongside IFRS for performance assessment. Element Fleet Management reported a net income of $102,250,000 for the three-month period ending March 31, 2025, compared to $92,057,000 in December 2024 and $93,817,000 in March 2024. Adjusted net income was $112,758,000 in March 2025. After-tax adjusted operating income attributable to common shareholders was also reported.

Element Fleet Management is the largest publicly traded pure-play automotive fleet manager worldwide. It offers sustainable mobility solutions to optimize fleet performance across North America, Australia, and New Zealand. Services include vehicle acquisition, maintenance, risk management, and advising on decarbonization efforts. The company aims to enhance efficiency, reduce operating costs, and maximize clients’ fleet performance.

This press release includes forward-looking statements regarding Element’s financial performance, service enhancements, sustainability objectives, and more. Management’s expectations and views of future events are based on current information. Readers are cautioned that actual results may differ from these forward-looking statements due to various factors beyond Element’s control. Risk and assumptions are detailed in Element’s annual MD&A and Annual Information Form.



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