Element Fleet Management reported a 10% rise in Q2 adjusted net revenue to $318 million and outlined plans for $20 million in annualized savings by 2027.
Element Fleet Management (TSE:EFN) reported a 10% year-over-year increase in Q2 adjusted net revenue to $318 million, with adjusted earnings per share up 12% and return on equity at 19.6%. Vehicles under management grew 3% to 1.56 million, while first-half revenue, EPS, and free cash flow per share rose 13%, 18%, and 11%, respectively.
The company highlighted progress in its capital-light strategy, transferring $700 million of receivables off its balance sheet through an inaugural equity residual transaction. Digital transformation initiatives are projected to deliver $20 million in annualized savings by 2027. Element also returned $163 million to shareholders in Q2, including $120 million in share repurchases.
Management noted a partnership with Waymo to support autonomous-vehicle operations in San Diego, with revenue contributions expected starting in 2027. The collaboration could add a few percentage points to services-revenue growth.