AutoNation Reports Second Quarter 2025 Results
- Revenue up 8% driven by New Vehicle,
Customer Financial Services , and After-Sales growth - EPS
$2.26 (down 29%), Adjusted EPS$5.46 (up 37%) - Record After-Sales gross profit of
$599 million - up 12% year-over-year - Completed highly successful
$700 million AN Finance asset-backed securitization
"We are pleased to report another quarter of strong performance, with robust growth across the entire business, including double-digit growth in
Operational Summary
Second
quarter 2025 compared to the year-ago period:
|
Selected GAAP Financial Data |
||||||
|
(In millions, except per share data and unit sales) |
||||||
|
|
|
Three Months Ended |
||||
|
|
|
2025 |
|
2024 |
|
YoY |
|
Revenue |
|
$ 6,974.4 |
|
$ 6,480.4 |
|
8 % |
|
Gross Profit |
|
$ 1,275.4 |
|
$ 1,163.1 |
|
10 % |
|
Operating Income |
|
$ 217.6 |
|
$ 275.0 |
|
-21 % |
|
Net Income |
|
$ 86.4 |
|
$ 130.2 |
|
-34 % |
|
Diluted EPS |
|
$ 2.26 |
|
$ 3.20 |
|
-29 % |
|
Diluted weighted average common shares outstanding |
|
38.3 |
|
40.7 |
|
-6 % |
|
|
|
|
|
|
|
|
|
Same-store Revenue |
|
$ 6,904.1 |
|
$ 6,383.4 |
|
8 % |
|
Same-store Gross Profit |
|
$ 1,263.4 |
|
$ 1,145.8 |
|
10 % |
|
|
|
|
|
|
|
|
|
Same-store New Vehicle Retail Unit Sales |
|
65,334 |
|
60,608 |
|
8 % |
|
Same-store Used Vehicle Retail Unit Sales |
|
68,398 |
|
64,364 |
|
6 % |
|
|
||||||
|
|
||||||
|
Selected Non-GAAP Financial Data* |
||||||
|
($ in millions, except per share data)
|
||||||
|
|
|
Three Months Ended |
||||
|
|
|
2025 |
|
2024 |
|
YoY |
|
Adjusted Operating Income |
|
$ 369.3 |
|
$ 318.5 |
|
16 % |
|
Adjusted Net Income |
|
$ 209.2 |
|
$ 162.5 |
|
29 % |
|
Adjusted Diluted EPS |
|
$ 5.46 |
|
$ 3.99 |
|
37 % |
|
*Reconciliations of non-GAAP financial measures are included in the attached financial tables. 2025 Adjusted Diluted EPS excludes after-tax non-cash goodwill, franchise rights, and other asset impairments of |
-
Same-store Revenue –
$6.9 billion , increased$521 million or 8% 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$283 million or 9%. - Used Vehicle Revenue –
$2.0 billion , an increase of$71 million or 4%. - After-Sales Revenue–
$1.2 billion , an increase of$125 million or 12%. - Customer Financial Services Revenue–
$363 million , an increase of$43 million or 13%.
- New Vehicle Revenue –
-
Same-store Gross Profit
–
$1.3 billion , an increase of$118 million or 10% from a year ago.- New Vehicle Gross Profit –
$183 million , a decrease of$6 million reflecting unit profitability of$2,795 compared to$3,113 a year ago, partially offset by an 8% increase in unit sales. - Used Vehicle Gross Profit –
$124 million , an increase of$13 million reflecting a 6% increase in unit sales and stable unit profitability of$1,627 compared to$1,642 a year ago. - After-Sales Gross Profit –
$594 million , an increase of$68 million or 13%. - Customer Financial Services Gross Profit –
$363 million , an increase of$43 million or 13%, reflecting a 7% increase in retail unit sales and unit profitability of$2,711 compared to$2,561 a year ago.
- New Vehicle Gross Profit –
- SG&A as a Percentage of Gross Profit – was 67.0%, or 66.2% on an adjusted basis, down from 67.3% on an adjusted basis in the prior year.
Segment Results
Segment results(1) for the second quarter of 2025 were as follows:
-
Domestic
– Domestic Segment Income(2) was
$92 million compared to$50 million a year ago, an increase of 83%. Revenue of$1.9 billion was up 10%. -
Import
– Import Segment Income(2) was
$133 million compared to$108 million a year ago, an increase of 23%. Revenue of$2.1 billion was up 6%. -
Premium Luxury
– Premium Luxury Segment Income(2) was
$180 million compared to$142 million a year ago, an increase of 27%. Revenue of$2.6 billion was up 7%. -
AutoNation Finance
–
AutoNation Finance income was
$2 million compared to$1 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 six months ended
During the first half of 2025, AutoNation repurchased 1.5 million shares of common stock for an aggregate purchase price of
As of
Year-to-date 2025 compared to the year-ago period:
|
Selected GAAP Financial Data |
||||||
|
(In millions, except per share data and unit sales ) |
||||||
|
|
|
Six Months Ended |
||||
|
|
|
2025 |
|
2024 |
|
YoY |
|
Revenue |
|
$ 13,664.8 |
|
$ 12,966.1 |
|
5 % |
|
Gross Profit |
|
$ 2,495.3 |
|
$ 2,361.0 |
|
6 % |
|
Operating Income |
|
$ 553.6 |
|
$ 615.3 |
|
-10 % |
|
Net Income |
|
$ 261.9 |
|
$ 320.3 |
|
-18 % |
|
Diluted EPS |
|
$ 6.73 |
|
$ 7.72 |
|
-13 % |
|
Diluted weighted average common shares outstanding |
|
38.9 |
|
41.5 |
|
-6 % |
|
|
|
|
|
|
|
|
|
Same-store Revenue |
|
$ 13,559.1 |
|
$ 12,764.2 |
|
6 % |
|
Same-store Gross Profit |
|
$ 2,477.0 |
|
$ 2,324.8 |
|
7 % |
|
|
|
|
|
|
|
|
|
Same-store New Vehicle Retail Unit Sales |
|
127,713 |
|
118,835 |
|
7 % |
|
Same-store Used Vehicle Retail Unit Sales |
|
135,185 |
|
132,214 |
|
2 % |
|
|
||||||
|
Selected Non-GAAP Financial Data* |
||||||
|
($ in millions, except per share data) |
||||||
|
|
|
Six Months Ended |
||||
|
|
|
2025 |
|
2024 |
|
YoY |
|
Adjusted Operating Income |
|
$ 703.7 |
|
$ 666.1 |
|
6 % |
|
Adjusted Net Income |
|
$ 393.4 |
|
$ 352.6 |
|
12 % |
|
Adjusted Diluted EPS |
|
$ 10.11 |
|
$ 8.50 |
|
19 % |
|
*Reconciliations of non-GAAP financial measures are included in the attached financial tables. |
-
Same-store Revenue
–
$13.6 billion , increased$795 million or 6% from a year ago, primarily reflecting increased new vehicle unit sales and higher average new vehicle selling prices.- New Vehicle Revenue –
$6.6 billion , an increase of$584 million or 10%. - Used Vehicle Revenue –
$3.8 billion , an increase of$3 million or relatively flat. - After-Sales Revenue–
$2.4 billion , an increase of$149 million or 7%. - Customer Financial Services Revenue–
$712 million , an increase of$61 million or 9%.
- New Vehicle Revenue –
-
Same-store Gross Profit
–
$2.5 billion , an increase of$152 million or 7% from a year ago.- New Vehicle Gross Profit –
$357 million , a decrease of$26 million reflecting unit profitability of$2,798 compared to$3,222 a year ago, partially offset by a 7% increase in unit sales. - Used Vehicle Gross Profit –
$247 million , an increase of$27 million reflecting unit profitability of$1,650 compared to$1,559 a year ago and a 2% increase in unit sales. - After-Sales Gross Profit –
$1.2 billion , an increase of$90 million or 8%. - Customer Financial Services Gross Profit –
$712 million , an increase of$61 million or 9%, reflecting a 5% increase in retail unit sales and unit profitability of$2,707 , compared to$2,591 a year ago.
- New Vehicle Gross Profit –
- SG&A as a Percentage of Gross Profit – was 67.2%, or 66.8% on an adjusted basis, up from 66.4% on an adjusted basis in the prior year.
Segment Results
Segment results(1) for the first six months of 2025 were as follows:
-
Domestic
– Domestic Segment Income(2) was
$161 million compared to$126 million a year ago, an increase of 28%. Revenue of$3.6 billion was up 4%. -
Import
– Import Segment Income(2) was
$260 million compared to$237 million a year ago, an increase of 10%. Revenue of$4.2 billion was up 5%. -
Premium Luxury
– Premium Luxury Segment Income(2) was
$359 million compared to$314 million a year ago, an increase of 14%. Revenue of$5.1 billion was up 7%. -
AutoNation Finance
–
AutoNation Finance income was
$2 million compared to a loss of$4 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 second quarter conference call may be accessed by telephone at 833-470-1428 (Conference ID:114047) at
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
|
(1) |
AutoNation has four reportable segments: Domestic, Import, Premium Luxury, and AutoNation Finance. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, |
|
(2) |
Segment income for the Domestic, Import, and Premium Luxury reportable segments is defined as operating income less floorplan interest expense and is a non-GAAP measure. |
About
AutoNation, one of the largest automotive retailers in
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
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 and AutoNation Mobile Service, 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-
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)
|
|||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenue: |
|
|
|
|
|
|
|
|
New vehicle |
$ 3,396.3 |
|
$ 3,122.5 |
|
$ 6,644.4 |
|
$ 6,101.8 |
|
Used vehicle |
1,985.0 |
|
1,911.1 |
|
3,907.4 |
|
3,907.2 |
|
Parts and service |
1,221.1 |
|
1,117.1 |
|
2,385.1 |
|
2,289.5 |
|
Finance and insurance, net |
367.7 |
|
324.0 |
|
720.2 |
|
658.7 |
|
Other |
4.3 |
|
5.7 |
|
7.7 |
|
8.9 |
|
Total revenue |
6,974.4 |
|
6,480.4 |
|
13,664.8 |
|
12,966.1 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
New vehicle |
3,212.9 |
|
2,932.1 |
|
6,286.1 |
|
5,715.5 |
|
Used vehicle |
1,859.6 |
|
1,799.7 |
|
3,657.5 |
|
3,684.3 |
|
Parts and service |
622.5 |
|
580.5 |
|
1,218.8 |
|
1,197.1 |
|
Other |
4.0 |
|
5.0 |
|
7.1 |
|
8.2 |
|
Total cost of sales |
5,699.0 |
|
5,317.3 |
|
11,169.5 |
|
10,605.1 |
|
Gross profit |
1,275.4 |
|
1,163.1 |
|
2,495.3 |
|
2,361.0 |
|
AutoNation Finance income (loss) |
2.0 |
|
0.7 |
|
2.1 |
|
(4.3) |
|
Selling, general, and administrative expenses |
854.7 |
|
825.8 |
|
1,676.6 |
|
1,618.9 |
|
Depreciation and amortization |
63.9 |
|
59.9 |
|
125.7 |
|
118.2 |
|
|
65.3 |
|
— |
|
65.3 |
|
— |
|
Franchise rights impairment |
71.7 |
|
— |
|
71.7 |
|
— |
|
Other expense, net(1) |
4.2 |
|
3.1 |
|
4.5 |
|
4.3 |
|
Operating income |
217.6 |
|
275.0 |
|
553.6 |
|
615.3 |
|
Non-operating income (expense) items: |
|
|
|
|
|
|
|
|
Floorplan interest expense |
(45.3) |
|
(53.9) |
|
(91.8) |
|
(103.3) |
|
Other interest expense |
(46.2) |
|
(46.8) |
|
(88.5) |
|
(91.4) |
|
Other income (loss), net(2) |
12.3 |
|
(0.1) |
|
(0.9) |
|
6.9 |
|
Income before income taxes |
138.4 |
|
174.2 |
|
372.4 |
|
427.5 |
|
Income tax provision |
52.0 |
|
44.0 |
|
110.5 |
|
107.2 |
|
Net income |
$ 86.4 |
|
$ 130.2 |
|
$ 261.9 |
|
$ 320.3 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ 2.26 |
|
$ 3.20 |
|
$ 6.73 |
|
$ 7.72 |
|
Diluted weighted average common shares outstanding |
38.3 |
|
40.7 |
|
38.9 |
|
41.5 |
|
|
|
|
|
|
|
|
|
|
Common shares outstanding, net of treasury stock, at period end |
37.7 |
|
39.7 |
|
37.7 |
|
39.7 |
|
|
|
|
(1) |
Includes asset impairments and net gains on business/property divestitures. |
|
(2) |
Includes gains related to changes in the cash surrender value of corporate-owned life insurance for deferred compensation plan participants, as well as gains (losses) on minority equity investments. |
|
UNAUDITED SUPPLEMENTARY DATA ($ in millions, except per vehicle data)
|
||||||||||||||||
|
Operating Highlights |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle |
|
$ 3,396.3 |
|
$ 3,122.5 |
|
$ 273.8 |
|
8.8 |
|
$ 6,644.4 |
|
$ 6,101.8 |
|
$ 542.6 |
|
8.9 |
|
Retail used vehicle |
|
1,845.0 |
|
1,743.5 |
|
101.5 |
|
5.8 |
|
3,637.1 |
|
3,577.3 |
|
59.8 |
|
1.7 |
|
Wholesale |
|
140.0 |
|
167.6 |
|
(27.6) |
|
(16.5) |
|
270.3 |
|
329.9 |
|
(59.6) |
|
(18.1) |
|
Used vehicle |
|
1,985.0 |
|
1,911.1 |
|
73.9 |
|
3.9 |
|
3,907.4 |
|
3,907.2 |
|
0.2 |
|
— |
|
Finance and insurance, net |
|
367.7 |
|
324.0 |
|
43.7 |
|
13.5 |
|
720.2 |
|
658.7 |
|
61.5 |
|
9.3 |
|
Total variable operations |
|
5,749.0 |
|
5,357.6 |
|
391.4 |
|
7.3 |
|
11,272.0 |
|
10,667.7 |
|
604.3 |
|
5.7 |
|
Parts and service |
|
1,221.1 |
|
1,117.1 |
|
104.0 |
|
9.3 |
|
2,385.1 |
|
2,289.5 |
|
95.6 |
|
4.2 |
|
Other |
|
4.3 |
|
5.7 |
|
(1.4) |
|
|
|
7.7 |
|
8.9 |
|
(1.2) |
|
|
|
Total revenue |
|
$ 6,974.4 |
|
$ 6,480.4 |
|
$ 494.0 |
|
7.6 |
|
$ 13,664.8 |
|
$ 12,966.1 |
|
$ 698.7 |
|
5.4 |
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle |
|
$ 183.4 |
|
$ 190.4 |
|
$ (7.0) |
|
(3.7) |
|
$ 358.3 |
|
$ 386.3 |
|
$ (28.0) |
|
(7.2) |
|
Retail used vehicle |
|
113.1 |
|
107.3 |
|
5.8 |
|
5.4 |
|
226.1 |
|
209.1 |
|
17.0 |
|
8.1 |
|
Wholesale |
|
12.3 |
|
4.1 |
|
8.2 |
|
|
|
23.8 |
|
13.8 |
|
10.0 |
|
|
|
Used vehicle |
|
125.4 |
|
111.4 |
|
14.0 |
|
12.6 |
|
249.9 |
|
222.9 |
|
27.0 |
|
12.1 |
|
Finance and insurance |
|
367.7 |
|
324.0 |
|
43.7 |
|
13.5 |
|
720.2 |
|
658.7 |
|
61.5 |
|
9.3 |
|
Total variable operations |
|
676.5 |
|
625.8 |
|
50.7 |
|
8.1 |
|
1,328.4 |
|
1,267.9 |
|
60.5 |
|
4.8 |
|
Parts and service |
|
598.6 |
|
536.6 |
|
62.0 |
|
11.6 |
|
1,166.3 |
|
1,092.4 |
|
73.9 |
|
6.8 |
|
Other |
|
0.3 |
|
0.7 |
|
(0.4) |
|
|
|
0.6 |
|
0.7 |
|
(0.1) |
|
|
|
Total gross profit |
|
1,275.4 |
|
1,163.1 |
|
112.3 |
|
9.7 |
|
2,495.3 |
|
2,361.0 |
|
134.3 |
|
5.7 |
|
AutoNation Finance income (loss) |
|
2.0 |
|
0.7 |
|
1.3 |
|
|
|
2.1 |
|
(4.3) |
|
6.4 |
|
|
|
Selling, general, and administrative expenses |
|
854.7 |
|
825.8 |
|
(28.9) |
|
(3.5) |
|
1,676.6 |
|
1,618.9 |
|
(57.7) |
|
(3.6) |
|
Depreciation and amortization |
|
63.9 |
|
59.9 |
|
(4.0) |
|
|
|
125.7 |
|
118.2 |
|
(7.5) |
|
|
|
|
|
65.3 |
|
— |
|
(65.3) |
|
|
|
65.3 |
|
— |
|
(65.3) |
|
|
|
Franchise rights impairment |
|
71.7 |
|
— |
|
(71.7) |
|
|
|
71.7 |
|
— |
|
(71.7) |
|
|
|
Other expense, net |
|
4.2 |
|
3.1 |
|
(1.1) |
|
|
|
4.5 |
|
4.3 |
|
(0.2) |
|
|
|
Operating income |
|
217.6 |
|
275.0 |
|
(57.4) |
|
(20.9) |
|
553.6 |
|
615.3 |
|
(61.7) |
|
(10.0) |
|
Non-operating income (expense) items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan interest expense |
|
(45.3) |
|
(53.9) |
|
8.6 |
|
|
|
(91.8) |
|
(103.3) |
|
11.5 |
|
|
|
Other interest expense |
|
(46.2) |
|
(46.8) |
|
0.6 |
|
|
|
(88.5) |
|
(91.4) |
|
2.9 |
|
|
|
Other income (loss), net |
|
12.3 |
|
(0.1) |
|
12.4 |
|
|
|
(0.9) |
|
6.9 |
|
(7.8) |
|
|
|
Income before income taxes |
|
$ 138.4 |
|
$ 174.2 |
|
$ (35.8) |
|
(20.6) |
|
$ 372.4 |
|
$ 427.5 |
|
$ (55.1) |
|
(12.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
65,847 |
|
61,268 |
|
4,579 |
|
7.5 |
|
128,234 |
|
120,131 |
|
8,103 |
|
6.7 |
|
Used |
|
69,736 |
|
65,504 |
|
4,232 |
|
6.5 |
|
137,736 |
|
134,625 |
|
3,111 |
|
2.3 |
|
|
|
135,583 |
|
126,772 |
|
8,811 |
|
7.0 |
|
265,970 |
|
254,756 |
|
11,214 |
|
4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
$ 51,579 |
|
$ 50,965 |
|
$ 614 |
|
1.2 |
|
$ 51,815 |
|
$ 50,793 |
|
$ 1,022 |
|
2.0 |
|
Used |
|
$ 26,457 |
|
$ 26,617 |
|
$ (160) |
|
(0.6) |
|
$ 26,406 |
|
$ 26,572 |
|
$ (166) |
|
(0.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per vehicle retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
$ 2,785 |
|
$ 3,108 |
|
$ (323) |
|
(10.4) |
|
$ 2,794 |
|
$ 3,216 |
|
$ (422) |
|
(13.1) |
|
Used |
|
$ 1,622 |
|
$ 1,638 |
|
$ (16) |
|
(1.0) |
|
$ 1,642 |
|
$ 1,553 |
|
$ 89 |
|
5.7 |
|
Finance and insurance |
|
$ 2,712 |
|
$ 2,556 |
|
$ 156 |
|
6.1 |
|
$ 2,708 |
|
$ 2,586 |
|
$ 122 |
|
4.7 |
|
Total variable operations(1) |
|
$ 4,899 |
|
$ 4,904 |
|
$ (5) |
|
(0.1) |
|
$ 4,905 |
|
$ 4,923 |
|
$ (18) |
|
(0.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. |
||||||||||||||||
|
|
||||||||
|
|
||||||||
|
Operating Percentages |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
2025 ( %) |
|
2024 ( %) |
|
2025 ( %) |
|
2024 ( %) |
|
Revenue mix percentages: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
48.7 |
|
48.2 |
|
48.6 |
|
47.1 |
|
Used vehicle |
|
28.5 |
|
29.5 |
|
28.6 |
|
30.1 |
|
Parts and service |
|
17.5 |
|
17.2 |
|
17.5 |
|
17.7 |
|
Finance and insurance, net |
|
5.3 |
|
5.0 |
|
5.3 |
|
5.1 |
|
Other |
|
— |
|
0.1 |
|
— |
|
— |
|
|
|
100.0 |
|
100.0 |
|
100.0 |
|
100.0 |
|
Gross profit mix percentages: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
14.4 |
|
16.4 |
|
14.4 |
|
16.4 |
|
Used vehicle |
|
9.8 |
|
9.6 |
|
10.0 |
|
9.4 |
|
Parts and service |
|
46.9 |
|
46.1 |
|
46.7 |
|
46.3 |
|
Finance and insurance |
|
28.8 |
|
27.9 |
|
28.9 |
|
27.9 |
|
Other |
|
0.1 |
|
— |
|
— |
|
— |
|
|
|
100.0 |
|
100.0 |
|
100.0 |
|
100.0 |
|
Operating items as a percentage of revenue: |
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
5.4 |
|
6.1 |
|
5.4 |
|
6.3 |
|
Used vehicle - retail |
|
6.1 |
|
6.2 |
|
6.2 |
|
5.8 |
|
Parts and service |
|
49.0 |
|
48.0 |
|
48.9 |
|
47.7 |
|
Total |
|
18.3 |
|
17.9 |
|
18.3 |
|
18.2 |
|
Selling, general, and administrative expenses |
|
12.3 |
|
12.7 |
|
12.3 |
|
12.5 |
|
Operating income |
|
3.1 |
|
4.2 |
|
4.1 |
|
4.7 |
|
Operating items as a percentage of total gross profit: |
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
67.0 |
|
71.0 |
|
67.2 |
|
68.6 |
|
Operating income |
|
17.1 |
|
23.6 |
|
22.2 |
|
26.1 |
|
UNAUDITED SUPPLEMENTARY DATA ($ in millions)
|
||||||||||||||||
|
Segment Operating Highlights |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ 1,920.5 |
|
$ 1,739.4 |
|
$ 181.1 |
|
10.4 |
|
$ 3,637.9 |
|
$ 3,496.1 |
|
$ 141.8 |
|
4.1 |
|
Import |
|
2,148.3 |
|
2,018.8 |
|
129.5 |
|
6.4 |
|
4,195.6 |
|
3,998.3 |
|
197.3 |
|
4.9 |
|
Premium luxury |
|
2,555.8 |
|
2,398.4 |
|
157.4 |
|
6.6 |
|
5,132.3 |
|
4,813.3 |
|
319.0 |
|
6.6 |
|
Total Franchised Dealerships |
|
6,624.6 |
|
6,156.6 |
|
468.0 |
|
7.6 |
|
12,965.8 |
|
12,307.7 |
|
658.1 |
|
5.3 |
|
Corporate and other |
|
349.8 |
|
323.8 |
|
26.0 |
|
8.0 |
|
699.0 |
|
658.4 |
|
40.6 |
|
6.2 |
|
Total consolidated revenue |
|
$ 6,974.4 |
|
$ 6,480.4 |
|
$ 494.0 |
|
7.6 |
|
$ 13,664.8 |
|
$ 12,966.1 |
|
$ 698.7 |
|
5.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ 92.0 |
|
$ 50.3 |
|
$ 41.7 |
|
82.9 |
|
$ 161.0 |
|
$ 125.5 |
|
$ 35.5 |
|
28.3 |
|
Import |
|
133.4 |
|
108.2 |
|
25.2 |
|
23.3 |
|
259.6 |
|
237.0 |
|
22.6 |
|
9.5 |
|
Premium luxury |
|
180.1 |
|
141.9 |
|
38.2 |
|
26.9 |
|
358.8 |
|
313.5 |
|
45.3 |
|
14.4 |
|
Total Franchised Dealerships |
|
405.5 |
|
300.4 |
|
105.1 |
|
35.0 |
|
779.4 |
|
676.0 |
|
103.4 |
|
15.3 |
|
AutoNation Finance income (loss) |
|
2.0 |
|
0.7 |
|
1.3 |
|
|
|
2.1 |
|
(4.3) |
|
6.4 |
|
|
|
Corporate and other |
|
(235.2) |
|
(80.0) |
|
(155.2) |
|
|
|
(319.7) |
|
(159.7) |
|
(160.0) |
|
|
|
Add: Floorplan interest expense |
|
45.3 |
|
53.9 |
|
(8.6) |
|
|
|
91.8 |
|
103.3 |
|
(11.5) |
|
|
|
Operating income |
|
$ 217.6 |
|
$ 275.0 |
|
$ (57.4) |
|
(20.9) |
|
$ 553.6 |
|
$ 615.3 |
|
$ (61.7) |
|
(10.0) |
|
(1) Segment income for the Domestic, Import, and Premium Luxury reportable segments is a non-GAAP measure and is defined as operating income less floorplan interest expense. |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail new vehicle unit sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
19,354 |
|
16,583 |
|
2,771 |
|
16.7 |
|
36,132 |
|
32,485 |
|
3,647 |
|
11.2 |
|
Import |
|
29,748 |
|
28,729 |
|
1,019 |
|
3.5 |
|
57,751 |
|
56,297 |
|
1,454 |
|
2.6 |
|
Premium luxury |
|
16,745 |
|
15,956 |
|
789 |
|
4.9 |
|
34,351 |
|
31,349 |
|
3,002 |
|
9.6 |
|
|
|
65,847 |
|
61,268 |
|
4,579 |
|
7.5 |
|
128,234 |
|
120,131 |
|
8,103 |
|
6.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail used vehicle unit sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
19,752 |
|
18,734 |
|
1,018 |
|
5.4 |
|
38,176 |
|
38,497 |
|
(321) |
|
(0.8) |
|
Import |
|
23,392 |
|
22,572 |
|
820 |
|
3.6 |
|
46,547 |
|
46,337 |
|
210 |
|
0.5 |
|
Premium luxury |
|
19,016 |
|
17,769 |
|
1,247 |
|
7.0 |
|
38,033 |
|
36,732 |
|
1,301 |
|
3.5 |
|
Other |
|
7,576 |
|
6,429 |
|
1,147 |
|
17.8 |
|
14,980 |
|
13,059 |
|
1,921 |
|
14.7 |
|
|
|
69,736 |
|
65,504 |
|
4,232 |
|
6.5 |
|
137,736 |
|
134,625 |
|
3,111 |
|
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brand Mix - Retail New Vehicle Units Sold |
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
2025 ( %) |
|
2024 ( %) |
|
2025 ( %) |
|
2024 ( %) |
|
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.9 |
|
11.0 |
|
12.1 |
|
10.8 |
|
|
|
|
|
|
|
|
|
Chevrolet, Buick, |
|
11.3 |
|
10.8 |
|
11.0 |
|
10.6 |
|
|
|
|
|
|
|
|
|
Chrysler, Dodge, |
|
5.2 |
|
5.3 |
|
5.1 |
|
5.6 |
|
|
|
|
|
|
|
|
|
Domestic total |
|
29.4 |
|
27.1 |
|
28.2 |
|
27.0 |
|
|
|
|
|
|
|
|
|
Import: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toyota |
|
21.2 |
|
21.4 |
|
20.7 |
|
21.5 |
|
|
|
|
|
|
|
|
|
Honda |
|
12.8 |
|
13.5 |
|
12.7 |
|
13.3 |
|
|
|
|
|
|
|
|
|
Nissan |
|
1.5 |
|
1.9 |
|
1.5 |
|
1.9 |
|
|
|
|
|
|
|
|
|
Hyundai |
|
3.5 |
|
3.7 |
|
3.5 |
|
3.6 |
|
|
|
|
|
|
|
|
|
Subaru |
|
3.3 |
|
3.7 |
|
3.7 |
|
3.7 |
|
|
|
|
|
|
|
|
|
Other Import |
|
2.9 |
|
2.7 |
|
2.9 |
|
2.9 |
|
|
|
|
|
|
|
|
|
Import total |
|
45.2 |
|
46.9 |
|
45.0 |
|
46.9 |
|
|
|
|
|
|
|
|
|
Premium Luxury: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mercedes-Benz |
|
8.5 |
|
8.1 |
|
9.1 |
|
8.3 |
|
|
|
|
|
|
|
|
|
BMW |
|
8.3 |
|
9.0 |
|
8.7 |
|
8.7 |
|
|
|
|
|
|
|
|
|
Lexus |
|
3.5 |
|
3.5 |
|
3.5 |
|
3.6 |
|
|
|
|
|
|
|
|
|
Audi |
|
1.6 |
|
1.9 |
|
1.9 |
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
1.9 |
|
1.9 |
|
2.0 |
|
2.0 |
|
|
|
|
|
|
|
|
|
Other Premium Luxury |
|
1.6 |
|
1.6 |
|
1.6 |
|
1.5 |
|
|
|
|
|
|
|
|
|
Premium Luxury total |
|
25.4 |
|
26.0 |
|
26.8 |
|
26.1 |
|
|
|
|
|
|
|
|
|
|
|
100.0 |
|
100.0 |
|
100.0 |
|
100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
||||||||
|
AutoNation Finance |
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
|
2025 |
|
2024 |
|
$ Variance |
|
2025 |
|
2024 |
|
$ Variance |
|
Interest margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fee income |
|
$ 48.6 |
|
$ 26.5 |
|
$ 22.1 |
|
$ 90.5 |
|
$ 48.3 |
|
$ 42.2 |
|
Interest expense |
|
(17.8) |
|
(8.7) |
|
(9.1) |
|
(31.7) |
|
(15.7) |
|
(16.0) |
|
Total interest margin |
|
30.8 |
|
17.8 |
|
13.0 |
|
58.8 |
|
32.6 |
|
26.2 |
|
Provision for credit losses |
|
(19.2) |
|
(7.7) |
|
(11.5) |
|
(38.1) |
|
(17.9) |
|
(20.2) |
|
Total interest margin after provision for loan losses |
|
11.6 |
|
10.1 |
|
1.5 |
|
20.7 |
|
14.7 |
|
6.0 |
|
Direct expenses(1) |
|
(9.6) |
|
(9.4) |
|
(0.2) |
|
(18.6) |
|
(19.0) |
|
0.4 |
|
AutoNation Finance income (loss) |
|
$ 2.0 |
|
$ 0.7 |
|
$ 1.3 |
|
$ 2.1 |
|
$ (4.3) |
|
$ 6.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Direct expenses are comprised primarily of compensation expenses and loan administration costs incurred by our auto finance company. |
||||||||||||
|
UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions)
|
||||||||
|
Capital Allocation |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Capital expenditures |
|
$ 79.0 |
|
$ 87.5 |
|
$ 154.2 |
|
$ 181.2 |
|
Cash paid for acquisitions, net of cash acquired |
|
$ — |
|
$ — |
|
$ 69.6 |
|
$ — |
|
Stock repurchases: |
|
|
|
|
|
|
|
|
|
Aggregate purchase price(1) |
|
$ 29.0 |
|
$ 311.3 |
|
$ 253.8 |
|
$ 350.0 |
|
Shares repurchased (in millions) |
|
0.2 |
|
2.0 |
|
1.5 |
|
2.2 |
|
|
||||||||||||
|
New Vehicle Floorplan Assistance and Expense |
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
|
2025 |
|
2024 |
|
Variance |
|
2025 |
|
2024 |
|
Variance |
|
Floorplan assistance earned (included in cost of sales) |
|
$ 34.7 |
|
$ 31.6 |
|
$ 3.1 |
|
$ 65.8 |
|
$ 63.4 |
|
$ 2.4 |
|
New vehicle floorplan interest expense |
|
(43.6) |
|
(52.3) |
|
8.7 |
|
(87.6) |
|
(98.9) |
|
11.3 |
|
Net new vehicle inventory carrying expense |
|
$ (8.9) |
|
$ (20.7) |
|
$ 11.8 |
|
$ (21.8) |
|
$ (35.5) |
|
$ 13.7 |
|
|
||||||
|
Balance Sheet and Other Highlights |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ 62.9 |
|
$ 59.8 |
|
$ 85.9 |
|
Inventory |
|
$ 3,445.6 |
|
$ 3,360.0 |
|
$ 3,553.9 |
|
Floorplan notes payable |
|
$ 3,655.9 |
|
$ 3,709.7 |
|
$ 3,959.8 |
|
Auto loans receivable, net |
|
$ 1,702.4 |
|
$ 1,057.1 |
|
$ 709.4 |
|
Non-recourse debt |
|
$ 1,464.6 |
|
$ 826.0 |
|
$ 488.3 |
|
Non-vehicle debt |
|
$ 3,764.6 |
|
$ 3,762.1 |
|
$ 4,011.6 |
|
Equity |
|
$ 2,469.5 |
|
$ 2,457.3 |
|
$ 2,183.2 |
|
|
|
|
|
|
|
|
|
New days supply (industry standard of selling days) |
|
49 days |
|
39 days |
|
67 days |
|
Used days supply (trailing calendar month days) |
|
39 days |
|
37 days |
|
34 days |
|
|
||
|
Key Credit Agreement Covenant Compliance Calculations (2) |
|
|
|
Leverage ratio |
|
2.33x |
|
Covenant |
less than or equal to |
3.75x |
|
|
||
|
Interest coverage ratio |
|
4.63x |
|
Covenant |
greater than or equal to |
3.00x |
|
|
|
|
(1) |
Excludes excise taxes imposed under Inflation Reduction Act. |
|
(2) |
Calculated in accordance with our credit agreement as filed with our Quarterly Report on Form 10-Q for the quarter ended |
|
UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data)
|
||||||||||||||||||||||||
|
Comparable Basis Reconciliations(1) |
||||||||||||||||||||||||
|
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Provision(2) |
|
Effective Tax Rate |
|
Net Income |
|
Diluted Earnings Per Share(3) |
||||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
As reported |
$ 217.6 |
|
$ 275.0 |
|
$ 138.4 |
|
$ 174.2 |
|
$ 52.0 |
|
$ 44.0 |
|
37.6 % |
|
25.3 % |
|
$ 86.4 |
|
$ 130.2 |
|
$ 2.26 |
|
$ 3.20 |
|
|
Increase in compensation expense related to market valuation changes in deferred compensation obligations(4) |
10.4 |
|
0.7 |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
— |
|
— |
|
$ — |
|
$ — |
|
|
impairments(5) |
141.3 |
|
— |
|
141.3 |
|
— |
|
18.5 |
|
— |
|
|
|
|
|
122.8 |
|
— |
|
$ 3.21 |
|
$ — |
|
|
One-time costs associated with CDK outage(6) |
— |
|
42.8 |
|
— |
|
42.8 |
|
— |
|
10.5 |
|
|
|
|
|
— |
|
32.3 |
|
$ — |
|
$ 0.79 |
|
|
Adjusted |
$ 369.3 |
|
$ 318.5 |
|
$ 279.7 |
|
$ 217.0 |
|
$ 70.5 |
|
$ 54.5 |
|
25.2 % |
|
25.1 % |
|
$ 209.2 |
|
$ 162.5 |
|
$ 5.46 |
|
$ 3.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
SG&A |
|
SG&A as a Percentage of Gross Profit (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
$ 854.7 |
|
$ 825.8 |
|
67.0 |
|
71.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in compensation expense related to market valuation changes in deferred compensation obligations |
10.4 |
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time costs associated with CDK outage |
— |
|
42.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
$ 844.3 |
|
$ 782.3 |
|
66.2 |
|
67.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Please refer to the "Non-GAAP Financial Measures" section of the Press Release. |
|||||||||||||||||||||||
|
(2) |
Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item. |
|||||||||||||||||||||||
|
(3) |
Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
|||||||||||||||||||||||
|
(4) |
Increases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, the net impact to net income and earnings per share is de minimis. Gains related to the COLI are recorded in non-operating Other Income (Loss), Net. |
|||||||||||||||||||||||
|
(5) |
Includes goodwill impairment of |
|||||||||||||||||||||||
|
(6) |
Represents certain one-time costs incurred associated with the CDK outage, principally consisting of compensation paid to commission-based associates to ensure business continuity. |
|||||||||||||||||||||||
|
UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data)
|
||||||||||||||||||||||||
|
Comparable Basis Reconciliations(1) |
||||||||||||||||||||||||
|
|
Six Months Ended |
|||||||||||||||||||||||
|
|
|
Operating Income |
|
Income Before Income Taxes |
|
Income Tax Provision(2) |
|
Effective Tax Rate |
|
Net Income |
|
Diluted Earnings Per Share(3) |
||||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
As reported |
$ 553.6 |
|
$ 615.3 |
|
$ 372.4 |
|
$ 427.5 |
|
$ 110.5 |
|
$ 107.2 |
|
29.7 % |
|
25.1 % |
|
$ 261.9 |
|
$ 320.3 |
|
$ 6.73 |
|
$ 7.72 |
|
|
Increase in compensation expense related to market valuation changes in deferred compensation obligations(4) |
8.8 |
|
8.0 |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
— |
|
— |
|
$ — |
|
$ — |
|
|
impairments(5) |
141.3 |
|
— |
|
141.3 |
|
— |
|
18.5 |
|
— |
|
|
|
|
|
122.8 |
|
— |
|
$ 3.16 |
|
$ — |
|
|
Net loss on equity investments |
— |
|
— |
|
11.5 |
|
— |
|
2.8 |
|
— |
|
|
|
|
|
8.7 |
|
— |
|
$ 0.22 |
|
$ — |
|
|
One-time costs associated with CDK outage(6) |
— |
|
42.8 |
|
— |
|
42.8 |
|
— |
|
10.5 |
|
|
|
|
|
— |
|
32.3 |
|
$ — |
|
$ 0.78 |
|
|
Adjusted |
$ 703.7 |
|
$ 666.1 |
|
$ 525.2 |
|
$ 470.3 |
|
$ 131.8 |
|
$ 117.7 |
|
25.1 % |
|
25.0 % |
|
$ 393.4 |
|
$ 352.6 |
|
$ 10.11 |
|
$ 8.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
SG&A |
|
SG&A as a Percentage of Gross Profit (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported |
$ 1,676.6 |
|
$ 1,618.9 |
|
67.2 |
|
68.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in compensation expense related to market valuation changes in deferred compensation obligations |
8.8 |
|
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time costs associated with CDK outage |
— |
|
42.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
$ 1,667.8 |
|
$ 1,568.1 |
|
66.8 |
|
66.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Please refer to the "Non-GAAP Financial Measures" section of the Press Release. |
|||||||||||||||||||||||
|
(2) |
Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item. |
|||||||||||||||||||||||
|
(3) |
Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
|||||||||||||||||||||||
|
(4) |
Increases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, the net impact to net income and earnings per share is de minimis. Gains related to the COLI are recorded in non-operating Other Income (Loss), Net. |
|||||||||||||||||||||||
|
(5) |
Includes goodwill impairment of |
|||||||||||||||||||||||
|
(6) |
Represents certain one-time costs incurred associated with the CDK outage, principally consisting of compensation paid to commission-based associates to ensure business continuity. |
|||||||||||||||||||||||
|
UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data)
|
||||
|
Free Cash Flow |
|
Six Months Ended |
||
|
|
|
2025 |
|
2024 |
|
Net cash provided by (used in) operating activities |
|
$ (230.3) |
|
$ 234.9 |
|
Net payments of vehicle floorplan - non-trade |
|
83.1 |
|
94.8 |
|
Increase in auto loans receivable, net |
|
695.0 |
|
370.6 |
|
Adjusted cash provided by operating activities |
|
547.8 |
|
700.3 |
|
Purchases of property and equipment |
|
(154.2) |
|
(181.2) |
|
Adjusted free cash flow |
|
$ 393.6 |
|
$ 519.1 |
|
Adjusted net income |
|
$ 393.4 |
|
$ 352.6 |
|
Adjusted free cash flow conversion % |
|
100 |
|
147 |
|
UNAUDITED SAME STORE DATA ($ in millions, except per vehicle data)
|
||||||||||||||||
|
Operating Highlights |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
2025 |
|
2024 |
|
$ Variance |
|
% Variance |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle |
|
$ 3,372.0 |
|
$ 3,088.7 |
|
$ 283.3 |
|
9.2 |
|
$ 6,619.6 |
|
$ 6,036.0 |
|
$ 583.6 |
|
9.7 |
|
Retail used vehicle |
|
1,815.2 |
|
1,717.5 |
|
97.7 |
|
5.7 |
|
3,581.7 |
|
3,521.6 |
|
60.1 |
|
1.7 |
|
Wholesale |
|
138.3 |
|
164.9 |
|
(26.6) |
|
(16.1) |
|
265.9 |
|
323.3 |
|
(57.4) |
|
(17.8) |
|
Used vehicle |
|
1,953.5 |
|
1,882.4 |
|
71.1 |
|
3.8 |
|
3,847.6 |
|
3,844.9 |
|
2.7 |
|
0.1 |
|
Finance and insurance, net |
|
362.5 |
|
320.0 |
|
42.5 |
|
13.3 |
|
711.7 |
|
650.4 |
|
61.3 |
|
9.4 |
|
Total variable operations |
|
5,688.0 |
|
5,291.1 |
|
396.9 |
|
7.5 |
|
11,178.9 |
|
10,531.3 |
|
647.6 |
|
6.1 |
|
Parts and service |
|
1,211.9 |
|
1,086.7 |
|
125.2 |
|
11.5 |
|
2,372.5 |
|
2,223.9 |
|
148.6 |
|
6.7 |
|
Other |
|
4.2 |
|
5.6 |
|
(1.4) |
|
|
|
7.7 |
|
9.0 |
|
(1.3) |
|
|
|
Total revenue |
|
$ 6,904.1 |
|
$ 6,383.4 |
|
$ 520.7 |
|
8.2 |
|
$ 13,559.1 |
|
$ 12,764.2 |
|
$ 794.9 |
|
6.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle |
|
$ 182.6 |
|
$ 188.7 |
|
$ (6.1) |
|
(3.2) |
|
$ 357.4 |
|
$ 382.9 |
|
$ (25.5) |
|
(6.7) |
|
Retail used vehicle |
|
111.3 |
|
105.7 |
|
5.6 |
|
5.3 |
|
223.0 |
|
206.1 |
|
16.9 |
|
8.2 |
|
Wholesale |
|
12.4 |
|
4.6 |
|
7.8 |
|
|
|
24.1 |
|
14.5 |
|
9.6 |
|
|
|
Used vehicle |
|
123.7 |
|
110.3 |
|
13.4 |
|
12.1 |
|
247.1 |
|
220.6 |
|
26.5 |
|
12.0 |
|
Finance and insurance |
|
362.5 |
|
320.0 |
|
42.5 |
|
13.3 |
|
711.7 |
|
650.4 |
|
61.3 |
|
9.4 |
|
Total variable operations |
|
668.8 |
|
619.0 |
|
49.8 |
|
8.0 |
|
1,316.2 |
|
1,253.9 |
|
62.3 |
|
5.0 |
|
Parts and service |
|
594.4 |
|
526.2 |
|
68.2 |
|
13.0 |
|
1,160.2 |
|
1,070.3 |
|
89.9 |
|
8.4 |
|
Other |
|
0.2 |
|
0.6 |
|
(0.4) |
|
|
|
0.6 |
|
0.6 |
|
— |
|
|
|
Total gross profit |
|
$ 1,263.4 |
|
$ 1,145.8 |
|
$ 117.6 |
|
10.3 |
|
$ 2,477.0 |
|
$ 2,324.8 |
|
$ 152.2 |
|
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail vehicle unit sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
65,334 |
|
60,608 |
|
4,726 |
|
7.8 |
|
127,713 |
|
118,835 |
|
8,878 |
|
7.5 |
|
Used |
|
68,398 |
|
64,364 |
|
4,034 |
|
6.3 |
|
135,185 |
|
132,214 |
|
2,971 |
|
2.2 |
|
|
|
133,732 |
|
124,972 |
|
8,760 |
|
7.0 |
|
262,898 |
|
251,049 |
|
11,849 |
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per vehicle retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
$ 51,612 |
|
$ 50,962 |
|
$ 650 |
|
1.3 |
|
$ 51,832 |
|
$ 50,793 |
|
$ 1,039 |
|
2.0 |
|
Used |
|
$ 26,539 |
|
$ 26,684 |
|
$ (145) |
|
(0.5) |
|
$ 26,495 |
|
$ 26,636 |
|
$ (141) |
|
(0.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit per vehicle retailed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New |
|
$ 2,795 |
|
$ 3,113 |
|
$ (318) |
|
(10.2) |
|
$ 2,798 |
|
$ 3,222 |
|
$ (424) |
|
(13.2) |
|
Used |
|
$ 1,627 |
|
$ 1,642 |
|
$ (15) |
|
(0.9) |
|
$ 1,650 |
|
$ 1,559 |
|
$ 91 |
|
5.8 |
|
Finance and insurance |
|
$ 2,711 |
|
$ 2,561 |
|
$ 150 |
|
5.9 |
|
$ 2,707 |
|
$ 2,591 |
|
$ 116 |
|
4.5 |
|
Total variable operations(1) |
|
$ 4,908 |
|
$ 4,916 |
|
$ (8) |
|
(0.2) |
|
$ 4,915 |
|
$ 4,937 |
|
$ (22) |
|
(0.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. |
||||||||||||||||
|
|
||||||||
|
Operating Percentages |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
2025 ( %) |
|
2024 ( %) |
|
2025 ( %) |
|
2024 ( %) |
|
Revenue mix percentages: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
48.8 |
|
48.4 |
|
48.8 |
|
47.3 |
|
Used vehicle |
|
28.3 |
|
29.5 |
|
28.4 |
|
30.1 |
|
Parts and service |
|
17.6 |
|
17.0 |
|
17.5 |
|
17.4 |
|
Finance and insurance, net |
|
5.3 |
|
5.0 |
|
5.2 |
|
5.1 |
|
Other |
|
— |
|
0.1 |
|
0.1 |
|
0.1 |
|
|
|
100.0 |
|
100.0 |
|
100.0 |
|
100.0 |
|
Gross profit mix percentages: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
14.5 |
|
16.5 |
|
14.4 |
|
16.5 |
|
Used vehicle |
|
9.8 |
|
9.6 |
|
10.0 |
|
9.5 |
|
Parts and service |
|
47.0 |
|
45.9 |
|
46.8 |
|
46.0 |
|
Finance and insurance |
|
28.7 |
|
27.9 |
|
28.7 |
|
28.0 |
|
Other |
|
— |
|
0.1 |
|
0.1 |
|
— |
|
|
|
100.0 |
|
100.0 |
|
100.0 |
|
100.0 |
|
Operating items as a percentage of revenue: |
|
|
|
|
|
|
|
|
|
Gross profit: |
|
|
|
|
|
|
|
|
|
New vehicle |
|
5.4 |
|
6.1 |
|
5.4 |
|
6.3 |
|
Used vehicle - retail |
|
6.1 |
|
6.2 |
|
6.2 |
|
5.9 |
|
Parts and service |
|
49.0 |
|
48.4 |
|
48.9 |
|
48.1 |
|
Total |
|
18.3 |
|
17.9 |
|
18.3 |
|
18.2 |
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