Element Fleet Management (EFN) investor relations material

Executive summary

• Adjusted net revenue grew 10% year-over-year to $318 million in Q2 2026, with adjusted EPS up 12% to $0.34 and adjusted ROE expanding to 19.6%, driven by broad-based revenue gains and a capital-light strategy.

• Record first half revenue, supported by strong core business performance and re-acceleration in services revenue.

• Strategic partnerships, including with Waymo, expanded the mobility platform and autonomous vehicle market presence, with digital transformation initiatives advancing.

• Organizational actions included an 8% workforce reduction, targeting $20 million in annualized run-rate savings by 2027.

• Capital management enhanced through an inaugural equity residual transaction and repurchase of 8.1 million shares in H1 2026.

Financial highlights

• Adjusted net revenue was $318 million (+10% YoY); service revenue reached $164 million (+8% YoY); adjusted operating income was $177 million (+9% YoY); adjusted operating margin was 55.6%.

• Vehicles under management ended at 1.56 million, up 3% year-over-year.

• Net financing revenue was $136 million (+7% YoY), with core NFR yield at 5.12%.

• Syndication revenue was $18 million (+58% YoY), supported by higher volumes and bonus depreciation.

• Originations totaled $1.7 billion, down 9% YoY but up 19% sequentially.

Outlook and guidance

• Full-year 2026 guidance reaffirmed, with continued momentum expected in core business and enhanced capital-light funding capabilities.

• Service revenue growth expected to benefit from the Waymo partnership starting in 2027.

• Targeting 2%-4% annual VUM growth and 6%-8% medium-term revenue growth, with service revenue as a key driver.

• Originations expected to accelerate in H2 2026, supported by a strong order pipeline.

• Expense growth expected to moderate due to organizational actions and efficiency gains from digitization.