Element Fleet Management: 2024 Earnings in Line with Expectations

Element Fleet Management Corp. (TSX:EFN), the world's largest publicly traded, pure-play automotive fleet manager, announced its financial and operating results for the three months ended December 31, 2024 and record results for the full year. The company's earnings for the full year 2024 were in line with expectations, driven by strong performance across key financial metrics.

Element Fleet Management's full-year 2024 earnings were $379.92 million, an increase of 15.84% compared to the previous year's $327.77 million. This strong performance was underpinned by an 18% year-over-year increase in services revenue and a 9% year-over-year increase in net financing revenue associated with higher net earning assets. The company's robust client demand, strong and growing pipeline, and high-recurring-revenue business model, combined with the benefits of investments made in 2024, drove continued growth across key financial metrics.

The company's adjusted operating margins and adjusted EPS for the full year 2024 were within the company's guidance range. Adjusted operating margins were 55.3%, within the guidance range of 54% to 56%. Similarly, adjusted EPS of $1.12 was within the guidance range of $1.08 to $1.14. Element Fleet Management's strong performance allowed it to accelerate strategic investments aimed at enhancing the client experience, modernizing operations through digitization and automation, and strengthening its teams and culture. These investments positioned the company for future success while delivering within its full-year adjusted operating margin guidance.

Element Fleet Management's reaffirmed 2025 guidance for net revenue growth of 6.5 to 8.5%, positive adjusted operating leverage, and high single- to low double-digit growth in each of adjusted operating income, adjusted EPS, and adjusted free cash flow per share reflects the company's confidence in its ability to continue driving growth and enhancing operational efficiency. The company's disciplined approach to strategic investing, combined with its focus on optimizing costs and driving operational efficiencies through digital innovation, positions it well to deliver on its financial targets and sustain success well into the future.



In conclusion, Element Fleet Management's 2024 earnings were in line with expectations, driven by strong performance across key financial metrics. The company's strategic investments, focus on operational efficiency, and disciplined approach to growth position it well for continued success in 2025 and beyond. Investors seeking exposure to the automotive fleet management sector should consider Element Fleet Management as a compelling investment opportunity.