Element Reports Third-Quarter Revenue of $320.7 Million, Up 5%
Key Facts
Element Fleet Management reported net revenue of $320.7 million in the third quarter of 2026, up 5% from the same period last year and 1% from the second quarter, according to its results statement issued on November 3. Adjusted diluted earnings per share were $0.35, up 6% year over year. Reported diluted earnings per share were $0.33, compared with $0.31 a year earlier. The figures show growth in revenue and adjusted earnings during the quarter, while the company's outlook points to a slower pace of revenue growth next year. The company also reported higher operating metrics and cash flows compared with the previous year.
Service revenue, one of the revenue growth drivers highlighted by the company, was $164 million in the third quarter, up $8 million or 5% from the same period last year. Element attributed the increase mainly to a higher number of vehicles under management and growth in service revenue per vehicle. The number of vehicles under management was 1.580 million, up 3% year over year. These metrics link the broader vehicle base with improved service revenue per vehicle, while the statement did not specify in the available facts how much each factor contributed separately. The company said service revenue “was $164 million, up $8 million or 5% from the prior year.”
On a per-share basis, adjusted diluted free cash flow was $0.45 for the quarter, up 7% from the previous year. The increase reinforces the improvement in per-share metrics alongside higher adjusted earnings per share, but comes with more cautious expectations for some full-year measures. Element said new financings in 2026 are expected to come in below the financial guidance range it had previously set. The company expects other annual metrics to be near the lower ends of their guidance ranges. The statement did not provide the value of the financings range or those metrics in the available facts, so the announced change remains descriptive, without additional figures.
The company expects net revenue growth to slow in 2027 to a low-single-digit rate, excluding the impact of foreign currency translation. This marks a shift in the expected pace of growth compared with the 5% year-over-year increase in net revenue recorded in the third quarter, although the periods and basis of comparison differ. Element also lowered its outlook for new financings this year to below the guidance range and expects other annual metrics to be near the lower ends of their ranges. The available facts did not disclose new numerical forecasts for these metrics. The company said it will issue full-year 2027 financial guidance alongside its fourth-quarter and full-year 2026 results in February 2027.
The company said it returned $341 million to shareholders through dividends and share repurchases, according to its results statement. After the quarter ended, Element expanded its strategic partnership with Waymo to support autonomous mobility operations in Toronto. The two announcements add another dimension to the company's activities alongside its revenue and service results, without the available facts in the statement detailing the partnership's contribution or associated return. ELEEF shares closed at $15.82 on November 2, according to EL7 data. That close preceded the results release on November 3, and the available facts do not include a post-announcement price or the session's trading range.
Element is scheduled to hold a conference call to discuss its third-quarter results on November 4, 2026, at 8:00 a.m. Eastern time, according to the statement. The call is one day after the results announcement, while the company plans to provide full-year 2027 financial guidance when it publishes its fourth-quarter and full-year 2026 results in February 2027. New financing expectations and this year's metrics, alongside the revenue path in 2027, will therefore be among the key figures the company has outlined in its current guidance framework.