AutoNation Reports Third Quarter 2025 Results

• Revenue up 7% driven by increases across all major categories
• EPS $5.65 up 23%, Adjusted EPS $5.01 up 25%
• After-Sales gross profit of $597 million up 7% and gross margin of 48.7% (up 100bps)
• Record CFS gross profit of $375 million up 12%
• Strong cash flow and balanced capital deployments

FORT LAUDERDALE, Fla., Oct. 23, 2025 /PRNewswire/ -- AutoNation, Inc. (NYSE:AN) today reported third quarter 2025 revenue of $7.0 billion, an increase of 7% compared to the same period a year ago. Third quarter 2025 EPS was $5.65, compared to $4.61 a year ago, and third quarter 2025 Adjusted EPS was $5.01, compared to $4.02 a year ago. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are pleased to report another quarter of strong performance, with robust growth across the business, including record profit in After-Sales and Customer Financial Services," said Mike Manley, Chief Executive Officer of AutoNation. "Cash flow was strong, and we deployed significant capital for share repurchases and acquisitions to improve density in existing markets. AutoNation Finance continued to scale, growing the portfolio to more than $2 billion while improving profitability. AutoNation's multiple revenue streams, flexible cost structure, cash flow generation, and investment grade balance sheet position us to continue delivering strong results and deploying capital to generate attractive shareholder returns," Manley concluded.

Operational Summary

Third quarter 2025 compared to the year-ago period: 

• Same-store Revenue – $6.9 billion, increased $422 million or 6% from a year ago, primarily reflecting increased new vehicle unit sales and higher average new vehicle selling prices.
• • New Vehicle Revenue – $3.4 billion, an increase of $229 million or 7%.
  • Used Vehicle Revenue – $2.0 billion, an increase of $95 million or 5%.
  • Customer Financial Services Revenue – $368 million, an increase of $36 million or 11%.
  • After-Sales Revenue – $1.2 billion, an increase of $65 million or 6%.
• Same-store Gross Profit – $1.2 billion, an increase of $50 million or 4% from a year ago.
  • New Vehicle Gross Profit – $150 million, a decrease of $27 million reflecting unit profitability of $2,290 compared to $2,820 a year ago, partially offset by a 4% increase in unit sales.
  • Used Vehicle Gross Profit – $114 million, an increase of $2 million reflecting a 2% increase in unit sales and unit profitability of $1,510 compared to $1,609 a year ago.
  • Customer Financial Services Gross Profit – $368 million, an increase of $36 million or 11%, reflecting unit profitability of $2,775 compared to $2,592 a year ago and a 3% increase in retail unit sales.
  • After-Sales Gross Profit – $589 million, an increase of $39 million or 7%.
• SG&A as a Percentage of Gross Profit – was 68.6%, or 67.4% on an adjusted basis, flat from 67.4% on an adjusted basis in the prior year.

Segment Results

Segment results⁽¹⁾ for the third quarter of 2025 were as follows:

• Domestic – Domestic Segment Income⁽²⁾ was $81 million compared to $62 million a year ago, an increase of 30%. Revenue of $1.9 billion was up 10%.
• Import – Import Segment Income⁽²⁾ was $124 million compared to $119 million a year ago, an increase of 4%. Revenue of $2.2 billion was up 6%.
• Premium Luxury – Premium Luxury Segment Income⁽²⁾ was $161 million compared to $155 million a year ago, an increase of 4%. Revenue of $2.6 billion was up 5%.
• AutoNation Finance – AutoNation Finance income was $2 million compared to a loss of $6 million a year ago. Year-over-year results reflect higher net interest margin and continued operating efficiencies, partially offset by higher non-cash credit provisioning related to significant loan origination growth.

Capital Allocation, Liquidity, and Leverage

For the first nine months ended September 30, 2025, cash used in operating activities was $39 million, auto loans receivable, net, increased $973 million, capital expenditures were $223 million, and adjusted free cash flow was $786 million, or 134% of adjusted net income.

In September, AutoNation acquired an Audi and a Mercedes-Benz store in Chicago. This follows the acquisition of a Mazda and a Ford store in Denver earlier this year. In total these combined acquisitions represent more than $500 million of annual revenues, enhance our brand portfolio, and add density to our existing footprint in Illinois and Colorado.

During the quarter, AutoNation repurchased 0.8 million shares for an aggregate purchase price of $181 million or $217 per share. Year-to-date through October 21, 2025, AutoNation repurchased 2.8 million shares for an aggregated purchase price of $523 million or $188 per share. As of October 21, 2025, AutoNation has approximately $338 million of repurchase authorization remaining under its current share repurchase program.

As of September 30, 2025, AutoNation had $1.8 billion of liquidity, including $98 million in cash and $1.7 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company's covenant leverage ratio was 2.35x at quarter-end and the Company had $3.8 billion of non-vehicle debt outstanding.

Year-to-date 2025 compared to the year-ago period:

• Same-store Revenue – $20.5 billion, increased $1.2 billion or 6% from a year ago, primarily reflecting increased new vehicle unit sales and higher average new vehicle selling prices.
  • New Vehicle Revenue – $10.0 billion, an increase of $817 million or 9%.
  • Used Vehicle Revenue – $5.8 billion, an increase of $100 million or 2%.
  • Customer Financial Services Revenue – $1.1 billion, an increase of $97 million or 10%.
  • After-Sales Revenue – $3.6 billion, an increase of $216 million or 6%.
• Same-store Gross Profit – $3.7 billion, an increase of $202 million or 6% from a year ago.
  • New Vehicle Gross Profit – $507 million, a decrease of $52 million reflecting unit profitability of $2,629 compared to $3,087 a year ago, partially offset by a 7% increase in unit sales.
  • Used Vehicle Gross Profit – $361 million, an increase of $28 million reflecting a 2% increase in unit sales and unit profitability of $1,604 compared to $1,578 a year ago.
  • Customer Financial Services Gross Profit – $1.1 billion, an increase of $97 million or 10%, reflecting unit profitability of $2,730, compared to $2,592 a year ago and a 4% increase in retail unit sales.
  • After-Sales Gross Profit – $1.7 billion, an increase of $129 million or 8%.
• SG&A as a Percentage of Gross Profit – was 67.7%, or 67.0% on an adjusted basis, up from 66.7% on an adjusted basis in the prior year.

Segment Results

Segment results⁽¹⁾ for the first nine months of 2025 were as follows:

• Domestic – Domestic Segment Income⁽²⁾ was $242 million compared to $188 million a year ago, an increase of 29%. Revenue of $5.6 billion was up 6%.
• Import – Import Segment Income⁽²⁾ was $383 million compared to $356 million a year ago, an increase of 8%. Revenue of $6.4 billion was up 5%.
• Premium Luxury – Premium Luxury Segment Income⁽²⁾ was $520 million compared to $468 million a year ago, an increase of 11%. Revenue of $7.7 billion was up 6%.
• AutoNation Finance – AutoNation Finance income was $4 million compared to a loss of $11 million a year ago. Year-over-year results reflect higher net interest margin and continued operating efficiencies, partially offset by higher non-cash credit provisioning related to significant loan origination growth.

The third quarter conference call may be accessed by telephone at 833-470-1428 (Conference ID: 500167) at 9:00 a.m. Eastern Time today or on AutoNation's investor relations website at investors.autonation.com.

The webcast will also be available on AutoNation's website following the call under "Events & Presentations." A playback of the conference call will be available after 12:00 p.m. Eastern Time on October 23, 2025, through November 13, 2025, by calling 866-813-9403 (Conference ID: 620105). Additional information regarding AutoNation's results can be found in the Investor Presentation available at investors.autonation.com.

About AutoNation, Inc.

AutoNation, one of the largest automotive retailers in the United States, offers innovative products and exceptional services as part of a portfolio of comprehensive solutions for our customers and their automotive needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised and donated over $45 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve. Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations.

NON-GAAP FINANCIAL

This news release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "estimates," "intends," "goals," "targets," "projects," "plans," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, and investments, including AutoNation Finance, statements regarding our expectations for shareholder returns, potential tariff-related impacts, and the future performance of our business and the automotive retail industry, including during 2025, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: economic conditions, including changes in tariffs, unemployment, interest, and/or inflation rates, consumer demand, and fuel prices; our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments; our ability to maintain or improve gross profit margins; our ability to maintain or gain market share; legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; changes in automotive laws and regulations affecting our business, including fuel economy requirements; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SOURCE AutoNation, Inc.