Element Reports Record Quarterly Results for Q3 2025

Financial Performance - Element Fleet Management Corp. reported a net revenue of $306.4 million for Q3 2025, reflecting a 10% increase year-over-year and a 6% increase quarter-over-quarter [2][5] - Pre-tax income for Q3 2025 was $159.7 million, up 19% from Q3 2024 and 11% from Q2 2025, with a pre-tax income margin of 52.1%, an increase of 420 basis points year-over-year [2][3] - Adjusted operating income rose to $177.7 million, a 10% increase from both Q3 2024 and Q2 2025, with an adjusted operating margin of 58.0%, up 220 basis points quarter-over-quarter [2][14] Earnings and Cash Flow - The diluted earnings per share (EPS) increased to $0.31, a 29% rise year-over-year, while adjusted diluted EPS reached $0.33, up 14% from Q3 2024 [2][3] - Adjusted free cash flow per share was $0.42, representing a 17% increase year-over-year and a 5% increase quarter-over-quarter [2][18] Revenue Breakdown - Services revenue increased by 6% year-over-year to $156 million, driven by higher utilization rates across the client base [6][7] - Net financing revenue grew by 12% year-over-year to $130 million, attributed to higher net earning assets in the U.S. and Mexico [8][9] - Syndication volume decreased by 37% year-over-year to $632 million, but syndication revenue increased by 20% to $20 million, indicating improved yields [10][11] Operational Highlights - Client originations totaled $1.7 billion in Q3 2025, with a record volume in Mexico, although this represented a 9% decrease quarter-over-quarter [15][16] - Vehicles under management increased by 2% year-over-year to 1.53 million [3][15] Shareholder Returns - The company returned $61 million to shareholders through dividends and share repurchases during Q3 2025 [18] - A quarterly cash dividend of CAD$0.13 per common share was declared, payable on January 15, 2026 [19] Strategic Initiatives - The company is focused on redefining fleet and mobility solutions, enhancing digital capabilities, and building partnerships to support long-term growth [4][44] - Investments in technology modernization and the Small-to-Medium-Fleets initiative are expected to enhance client experience and drive revenue growth [12][36]