This report does not constitute a rating action. We expect Element Fleet Management Corp.'s net revenue to increase 7%-9% in full-year 2026 and 8%-10% in 2027 because the company is gradually expanding its service and mobility capabilities, while maintaining its focus on fleet leasing. During the first half of 2026, reported net revenue increased 13% year over year to about $640.1 million, supported by growth across financing, syndication, and service revenues. Vehicles under management increased about 3% to 1.56 million. Management also implemented workforce reductions, targeting about $20 million in annualized savings through digitization and automation. We believe Element's continued focus on expanding higher-value service offerings, including fleet optimization, electrification, telematics, and mobility solutions, supports revenue diversification and deeper client
