Element Fleet Hits Record Q1 Revenue, Outpaces Rivals in Mobility Race

TORONTO, ON – May 06, 2026 – Element Fleet Management (TSX: EFN) today announced a blockbuster start to 2026, posting record quarterly net revenue and robust profit growth that significantly outshined its industry peers. The world's largest pure-play fleet manager reported record net revenue of $324 million for the first quarter, a 17% surge from the previous year, demonstrating potent momentum driven by strategic technology investments and strong client engagement.

This impressive top-line growth fueled a 24% year-over-year jump in adjusted diluted earnings per share (EPS) to $0.35 and a 25% increase in adjusted diluted free cash flow per share to $0.45. The results underscore the success of Element's capital-light business model and its focus on higher-margin services, expanding its adjusted operating margin to a formidable 56.2%.

"We entered 2026 with solid performance across the business and continued engagement from our clients," said Laura Dottori-Attanasio, Chief Executive Officer of Element, in the company's official release. "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."

Outpacing the Competition

Element's Q1 performance becomes even more striking when viewed against the backdrop of the global fleet management market. While Element grew its fleet of vehicles under management (VUM) by 3% year-over-year to 1.57 million, one of its largest global competitors, Ayvens, reported a 5.0% decrease in its total fleet during the same period, part of a strategic portfolio review. Furthermore, Element's 17% revenue growth contrasts sharply with Ayvens' slight sales decline, signaling a potential capture of market share and a validation of Element's growth strategy.

This divergence highlights the complex landscape fleet managers are navigating. The industry is buoyed by powerful tailwinds, including a projected compound annual growth rate of 16.9% through 2035, driven by a widespread push for digitalization and sustainability. However, it also faces significant headwinds, such as rising operational costs, supply chain bottlenecks for specialized vehicles, and a tight labor market.

Element's ability to thrive in this environment points to a successful navigation of these challenges. The company's results suggest its strategic focus on technology and integrated services is providing a crucial competitive edge, allowing it to generate efficiencies that offset broader market pressures.

The 'Intelligent Mobility' Engine

A key driver behind Element's financial success is its aggressive push into what it terms 'intelligent mobility.' This strategy, materialized through its Element Mobility division, aims to weave technology, data analytics, and digital payments into the fabric of fleet operations. The recent acquisition of Car IQ, a connected vehicle payments platform, is a cornerstone of this initiative.

Car IQ's technology allows vehicles to autonomously authenticate and pay for services like fuel and maintenance without a physical credit card. This integration, now operating under Element Mobility, is designed to streamline transactions, enhance spending controls, reduce fraud, and provide fleet operators with real-time, vehicle-level data.

This investment appears to be paying dividends. Adjusted operating expenses in Q1, while up 13% year-over-year due to investments in Car IQ and other strategic initiatives, were outpaced by the 17% revenue growth. This resulted in positive operating leverage of +3.9%, a key metric indicating that the company's investments in technology are creating efficiencies and scaling profitably. The company is successfully translating its digital transformation into tangible financial gains and a more resilient, data-driven service offering for its clients.

Delivering for Shareholders Amidst Market Nuances

Element's strong operational performance and robust free cash flow generation have directly translated into substantial returns for its investors. In Q1 2026, the company returned a total of $94 million to shareholders, comprising $37 million in common share dividends and $57 million through the repurchase of 2.3 million common shares.

This capital return strategy is underpinned by a 25% year-over-year increase in adjusted free cash flow per share, providing a strong foundation for continued dividends and buybacks. The Board of Directors underscored this confidence by declaring a quarterly dividend of CAD$0.15 per share for the second quarter.

While most metrics pointed upward, the company reported a 4% year-over-year decrease in originations to $1.5 billion. However, Element clarified this was largely due to a planned reduction in volume from a single, large originate-to-syndicate client. Stripping out this specific adjustment, the company stated that underlying originations growth was solid. This is further supported by an 8% increase in originations compared to the previous quarter (Q4 2025), reflecting healthy underlying client demand.

This disciplined approach to its syndication portfolio, prioritizing profitable client mix over sheer volume, coupled with its commitment to shareholder returns and a strong investment-grade balance sheet, paints a picture of a company executing a mature and confident strategy. As Element continues to invest in its digital capabilities, its performance this quarter has set a high bar for the year and a clear benchmark for its competitors in the evolving race for intelligent mobility leadership.