Q1 2025 Element Fleet Management Corp Earnings Call Transcript
Key Points
- Element Fleet Management Corp (ELEEF) reported solid net revenue growth of 8% year over year, driven by growth across all categories.
- The company added 34 new clients this quarter, indicating strong commercial momentum and client acquisition.
- ELEEF's digital strategy is progressing well, with advancements such as the digital driver app and enhanced client reporting portal.
- The Dublin-based leasing initiative is on track to meet revenue and operating income targets, showing promising international expansion.
- The company achieved a return on equity of 16.7% this quarter, reflecting strong financial performance.
- Significant foreign currency movements negatively impacted financial results, reducing net revenue by $17 million and diluted EPS by $0.02.
- The Mexican peso and Australian dollar depreciation affected year-over-year comparisons, highlighting exposure to currency volatility.
- Origination volumes were down year over year, largely due to foreign currency translation impacts.
- The company strategically delayed certain syndication activities to the second half of the year, which may affect short-term revenue.
- Adjusted operating expenses grew by 5% year over year, indicating ongoing cost pressures despite moderated growth.
Good morning and welcome to Element Fleet Management, first quarter 2025 Financial and operating results conference call. (Operator Instructions)
Element wishes to caution listeners that today's information contains forward-looking statements. The assumptions on which they are based, and the material risk and uncertainties that could cause them to differ or outline in the company's year-end and most recent MD&A and AIF.
Although management believes that the expectations expressed in the statements are reasonable, actual results could differ materially. The company also reminds listeners that today's call references certain non-GAAP and supplemental financial measures.
Management measures performance on a reported and adjusted basis and considers both to be useful in providing readers with a better understanding of how it assesses results. A reconciliation of these non-GAAP financial measures to IFRS measures can be found in the company's most recent MD&A.
I would now like to turn the conference call over to Ms. Laura Dottori-Attanasio, Chief Executive Officer.
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