AUTOCANADA ANNOUNCES FOURTH QUARTER RESULTS

Mar 18 2026 21:15 BST

Revenue from continuing operations was $1,116.6 million as compared to $1,265.8 million in the prior year, a decrease of $149.2 million
Net loss for the period from total operations was $(14.6) million as compared to $(38.4) million in the prior year
- Net (loss) income from continuing operations was $(2.3) million as compared to $9.8 million in the prior year
- Net loss from discontinued operations was $(12.2) million as compared to net loss of $(48.2) million in the prior year
Diluted net (loss) income per share from continuing operations of $(0.06) as compared to $0.45 in the prior year
Adjusted EBITDA¹ from total operations was $26.3 million as compared to $47.1 million in the prior year
- Adjusted EBITDA from continuing operations was $32.7 million as compared to $54.4 million in the prior year
- Adjusted EBITDA from discontinued operations was $(6.4) million as compared to $(7.3) million in the prior year
Total Net Funded Debt to Bank EBITDA Ratio² Increased from 3.40x as at September 30, 2025 to 3.44x as at December 31, 2025

EDMONTON, AB , March 18, 2026 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended December 31, 2025.

Samuel Cochrane, CEO, stated, "Fourth quarter performance was shaped by a more challenging market backdrop. Demand was affected by prior-period pull-forward activity, including the sunset of Canadian EV tax credits that benefited the fourth quarter of 2024 and tariff-related policy changes that drove stronger demand in the first half of 2025. At the same time, affordability pressures persisted and industry gross profit per unit declined as vehicle availability improved and pricing normalized. Industry wide performance was impacted in the fourth quarter by these dynamics, which have also created tough comparisons as we entered 2026.

Against that backdrop, AutoCanada navigated a period of significant internal change as we progressed through a leadership transition while simultaneously completing our cost transformation. Over the course of 2025, we achieved approximately $115 million in annualized run-rate cost savings.

The pace and scope of the transformation created temporary operational disruption at the store level in the second half of 2025, impacting sales productivity and performance relative to the broader market. We have identified the issues, put new operating leadership in place, and are focused on closing the gap to market through 2026.

Looking ahead, our priorities for 2026 are clear: stabilizing and improving our automotive retail operations, continuing to expand our collision platform, strengthening the support our head office provides to dealerships and collision centres, recruiting and retaining a high-performing team, and maintaining a lean and efficient cost structure.

I want to thank our employees across the organization for their commitment and resilience through this period of change, and our OEM partners for their continued collaboration and support. Together, we are building a stronger and more focused AutoCanada, and we are confident in the path ahead."

See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and year ended December 31, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at investors.autocan.ca or on www.sedarplus.ca).

Fourth Quarter Key Highlights and Recent Developments

	Three-Months Ended December 31
Continuing Operations Financial Results	2025	2024 Revised ³	% Change
Revenue	1,116,564	1,265,837	(11.8) %
Same store revenue	1,114,883	1,230,442	(9.4) %
Gross profit	173,970	216,118	(19.5) %
Gross profit percentage ²	15.6 %	17.1 %	(1.5) ppts
Operating expenses ("Opex")	150,212	178,675	(15.9) %
Net (loss) income	(2,331)	9,847	(123.7) %
Basic net (loss) income per share attributable to AutoCanada shareholders	(0.06)	0.46	(113.0) %
Diluted net (loss) income per share attributable to AutoCanada shareholders	(0.06)	0.45	(113.3) %
Adjusted EBITDA¹	32,703	54,379	(39.9) %
Adjusted EBITDA margin ¹	2.9 %	4.3 %	(1.4) ppts
New retail vehicles sold (units) ²	7,028	8,544	(17.7) %
Used retail vehicles sold (units) ²	8,741	10,585	(17.4) %
New vehicle gross profit per retail unit ²	3,748	4,627	(19.0) %
Used vehicle gross profit per retail unit ²	442	1,836	(75.9) %
Parts and service ("P&S") gross profit	69,626	76,843	(9.4) %
Collision repair ("Collision") gross profit	18,136	17,242	5.2 %
Finance, insurance and other ("F&I") gross profit per retail unit average ²	3,451	3,305	4.4 %
Operating expenses before depreciation ²	137,245	164,078	(16.4) %
Operating expenses before depreciation as a % of gross profit ²	78.9 %	75.9 %	3.0 ppts
Normalized opex before depreciation ¹	131,490	151,559	(13.2) %
Normalized opex before depreciation as a percentage of gross profit (%) ¹	75.6 %	70.1 %	5.5 ppts
Floorplan financing expense	8,331	13,055	(36.2) %

3 Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Revenue decreased by (11.8)% in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to decreases in new vehicle sales, used vehicle sales, parts and service, and F&I.

Gross profit decreased by (19.5)% to $174.0 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, driven by decreases in new vehicle, used vehicle, parts and service, and F&I gross profits. This decline is partially offset by an increase in gross profit from collision repair services.

Operating expenses before depreciation² decreased by (16.4)% to $137.2 million in the fourth quarter of 2025 compared to the fourth quarter of 2024. Normalized operating expenses before depreciation¹ decreased by (13.2)% to $131.5 million, and included the normalization of $4.9 million of restructuring charges related to the initiatives targeting $115.0 million in annual run-rate cost savings.

Floorplan financing expenses decreased (36.2)% to $8.3 million due to reduced new and used vehicle inventory levels and lower interest rates.

Net income for the period decreased by (123.7)% to a net loss of $(2.3) million in the fourth quarter of 2025 compared to $9.8 million in the fourth quarter of 2024, as a result of items noted above, as well as higher interest rate swap costs, unrealized FX losses, and income taxes, partially offset by an increase in fair value change in interest swaps and gain on settlement of redemption liability.

Adjusted EBITDA¹ decreased by (39.9)% to $32.7 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, while adjusted EBITDA margin¹ decreased by (1.4) percentage points ("ppts") to 2.9%. The decrease in margin was driven by decreases in gross profit, partially offset by lower operating expenses before depreciation² and lower floorplan financing expenses as noted above.

Collision Operations Highlights

	Three-Months Ended December 31
Collision Financial Results	2025	2024	% Change
Revenue	35,366	36,262	(2.5) %
Gross profit	18,136	17,242	5.2 %
Gross profit percentage²	51.3 %	47.5 %	3.8 ppts
Adjusted EBITDA¹	5,477	5,949	(7.9) %
Same store revenue²	33,686	36,262	(7.1) %
Same store gross profit²	17,576	17,241	1.9 %
Same store gross profit percentage²	52.2 %	47.5 %	4.7 ppts

Revenue decreased as a result of normalization of paintless dent repair following a severe hail event in 2024 and this was partially offset by increased revenue from traditional collision business.

Gross profit and gross profit percentage² increased driven by strong customer demand for traditional collision repair services, and additional Original Equipment Manufacturer ("OEM") certifications.

Trends in the same store revenue², gross profit and gross profit percentage² are consistent with overall business performance, with the reasons noted above.

Adjusted EBITDA¹ decreased as a result of increased operating expenses which relate to investments in operational support functions.

Other Recent Developments

During the quarter:

On October 3, 2025, the Company completed the acquisition of Doug's Place Strathcona, a collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment.
On October 28, 2025, the Company announced the appointment of AutoCanada's Chief Financial Officer to the role of Interim Chief Executive Officer. Concurrently, the Executive Chair transitioned out of his role as AutoCanada's Executive Chair and as a director of the Company. In addition, the Company's Chief Strategy Officer & General Counsel transitioned out of his respective role at the end of 2025.
On November 13, 2025, the Company announced that AutoCanada's Chief Operating Officer and President, North American Operations will be transitioning out of their respective roles. Mikel Pestrak was promoted to Interim President, Dealership Operations. Art Crawford was promoted to President, Collision Operations. Cynthia Hill was promoted to Executive Vice President, General Counsel and Corporate Secretary.
On December 15, 2025, the Company announced the appointment of Fade Bouras as Chief Operating Officer, effective January 5, 2026, and John North to its Board of Directors, effective immediately.
On December 15, 2025, the Company announced that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to commence a normal course issuer bid ("NCIB") for its common shares. Under the NCIB, the Company may purchase for cancellation up to 1,177,539 common shares, representing approximately 10% of the public float of 11,775,396 of the Company's issued and outstanding common shares on December 15, 2025. The NCIB will commence on December 18, 2025 and will terminate on the earlier of December 17, 2026, the date the Company acquires the maximum number of common shares under the NCIB, or such earlier date as the Company may determine.

After the quarter:

On January 20, 2026, the Company completed the acquisition of Modern Autobody, a single-location collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment.
On January 27, 2026, the Company sold substantially all of the operating assets of Toyota of Lincoln Park, located in Chicago, Illinois, for cash consideration of $11.2 million plus closing adjustments. Toyota of Lincoln Park was previously presented as held for sale in the U.S. Operations segment.
On February 18, 2026, the Company announced that its Board of Directors has appointed Samuel Cochrane as Chief Executive Officer, effective immediately. Mr. Cochrane will also serve as Interim Chief Financial Officer while the Company initiates a search for a permanent Chief Financial Officer.

Conference Call

A conference call to discuss the results for the three months ended December 31, 2025 will be held on March 18, 2026 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-510-2154 approximately 10 minutes prior to the call.

This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/2025-q4-conference-call/

MD&A and Financial Statements

Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three-month period and year ended December 31, 2025, which can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca.

All comparisons presented in this press release are between the three-month period ended December 31, 2025 and the three-month period ended December 31, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.

Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended
(in thousands of Canadian dollars except for share and per share amounts)

	December 31, 2025 $	December 31, 2024 Revised ⁽¹⁾ $
Continuing operations
Revenue (Note 6)	4,896,320	5,271,549
Cost of sales (Note 7)	(4,111,536)	(4,396,109)
Gross profit	784,784	875,440
Operating expenses (Note 8)	(657,632)	(720,408)
Operating profit before other income and expense	127,152	155,032
Lease and other income, net (Note 10)	6,540	7,783
Gain on disposal of assets, net (Note 10)	15,547	31,881
Net impairment losses on trade and other receivables	(2,107)	(8,737)
Impairment of non-financial assets (Note 20, 24)	(11,314)	(3,412)
Operating profit	135,818	182,547
Finance costs (Note 11)	(101,734)	(128,636)
Finance income (Note 11)	1,192	2,674
Gain (loss) on redemption liabilities (Note 14)	3,920	(486)
Other (losses) gains, net	(3,689)	846
Income for the year before tax from continuing operations	35,507	56,945
Income tax expense (Note 12)	12,121	8,035
Net income for the year from continuing operations	23,386	48,910
Net loss for the year from discontinued operations (Note 18)	(5,447)	(115,658)
Net income (loss) for the year	17,939	(66,748)
Other comprehensive income (loss)
Items that may be reclassified to profit or loss
Foreign operations currency translation (Note 18)	(6,131)	8,032
Reclassification of cumulative foreign operations currency translation on discontinued operations (Note 18)	(4,908)	—
Change in fair value of cash flow hedge (Note 25)	—	(206)
Income tax relating to these items (Note 12)	(604)	51
Other comprehensive (loss) income for the year, net of tax	(11,643)	7,877
Comprehensive income (loss) for the year	6,296	(58,871)
Net income (loss) for the year attributable to:
AutoCanada shareholders	16,034	(68,233)
Non-controlling interests	1,905	1,485
	17,939	(66,748)
Net income (loss) for the year attributable to AutoCanada shareholders arises from:
Continuing operations	21,481	47,425
Discontinued operations	(5,447)	(115,658)
	16,034	(68,233)
Comprehensive income (loss) for the year attributable to:
AutoCanada shareholders	4,391	(60,356)
Non-controlling interests	1,905	1,485
	6,296	(58,871)
Comprehensive income (loss) for the year attributable to AutoCanada shareholders arises from:
Continuing operations	16,552	47,270
Discontinued operations	(12,161)	(107,626)
	4,391	(60,356)

Consolidated Statements of Comprehensive (Loss) Income (continued)
For the Years Ended
(in thousands of Canadian dollars except for share and per share amounts)

	December 31, 2025 $	December 31, 2024 Revised ⁽¹⁾ $
Net income (loss) per share attributable to AutoCanada shareholders:
Basic from continuing operations	0.93	2.03
Basic from discontinued operations	(0.24)	(4.96)
Basic	0.69	(2.93)

Diluted from continuing operations	0.89	1.96
Diluted from discontinued operations	(0.23)	(4.79)
Diluted	0.66	(2.83)
Weighted average shares
Basic (Note 30)	23,103,884	23,316,008
Diluted (Note 30)	24,220,047	24,137,069

1 Comparative period revised to reflect current period presentation. See Note 18 - "Discontinued Operations" for additional information

The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca .

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

	December 31, 2025 $	December 31, 2024 $
ASSETS
Current assets
Cash	87,963	67,343
Trade and other receivables (Note 15)	133,164	173,568
Inventories (Note 16)	895,928	947,278
Current tax recoverable	12,297	10,205
Other current assets (Note 21)	16,790	11,993
Derivative financial instruments (Note 25)	911	376
	1,147,053	1,210,763
Assets held for sale (Note 17, 18)	228,259	332,693
Total current assets	1,375,312	1,543,456
Property and equipment (Note 19)	301,385	312,014
Right-of-use assets (Note 24)	337,936	389,958
Other long-term assets (Note 21)	15,821	16,501
Deferred income tax (Note 12)	16,772	18,840
Intangible assets (Note 20)	607,765	630,467
Goodwill (Note 20)	91,905	94,592
Total assets	2,746,896	3,005,828
LIABILITIES
Current liabilities
Trade and other payables (Note 22)	149,517	177,473
Revolving floorplan facilities (Note 23)	962,616	1,010,579
Current tax payable	3,602	3,766
Vehicle repurchase obligations (Note 26)	2,582	3,705
Indebtedness (Note 23)	1,688	24,108
Lease liabilities (Note 24)	25,872	35,780
Redemption liabilities (Note 14)	19,146	23,066
Equity forward liabilities (Note 27)	22,970	11,063
Derivative financial instruments (Note 25)	2,109	1,741
	1,190,102	1,291,281
Liabilities directly associated with assets held for sale (Note 18)	98,357	201,966
Total current liabilities	1,288,459	1,493,247
Long-term indebtedness (Note 23)	513,021	517,543
Long-term lease liabilities (Note 24)	383,469	421,392
Long-term redemption liabilities (Note 14)	25,000	25,000
Derivative financial instruments (Note 25)	5,147	8,705
Deferred income tax (Note 12)	49,824	44,613
Total liabilities	2,264,920	2,510,500
EQUITY
Attributable to AutoCanada shareholders	460,477	468,027
Attributable to non-controlling interests	21,499	27,301
Total equity	481,976	495,328
	2,746,896	3,005,828

Consolidated Statements of Cash Flows
For the Years Ended
(in thousands of Canadian dollars)

	December 31, 2025 $	December 31, 2024 $
Cash provided by (used in): Operating activities
Net income (loss) for the year	17,939	(66,748)
Adjustments for:
Income tax expense (Note 12, 18)	12,742	21,733
Finance costs (Note 11, 18)	118,339	155,598
Depreciation of right-of-use assets (Note 24)	32,618	35,919
Depreciation of property and equipment (Note 19)	20,100	25,843
Amortization of intangible assets (Note 20)	733	503
Gain on disposal of assets, net (Note 10, 18)	(22,839)	(29,781)
Share-based compensation (Note 29)	8,613	8,033
Unrealized fair value changes on foreign exchange forward contracts (Note 25)	(2,652)	3,853
Revaluation of redemption liabilities (Note 14)	(3,920)	486
Net impairment of non-financial assets (Note 18, 20)	3,808	21,058
Net change in non-cash working capital (Note 36)	(34,068)	1,325
	151,413	177,822
Income taxes paid	(8,322)	(537)
Interest paid	(117,462)	(144,412)
Settlement of share-based awards, net	(2,587)	(1,247)
	23,042	31,626
Investing activities
Business acquisitions, net of cash acquired (Note 13)	(2,174)	(20,197)
Purchases of property and equipment	(26,229)	(33,282)
Additions to intangible assets (Note 20)	(648)	(790)
Settlement of prior year business acquisitions	(46)	(491)
Proceeds on sale of property and equipment	10,433	63,123
Proceeds on divestiture of dealership (Note 34)	44,148	59,497
Proceeds on termination of loan agreement with subsidiary (Note 34)	30,107	—
Proceeds on franchise termination (Note 34)	894	—
	56,485	67,860
Financing activities
Proceeds from indebtedness (Note 23)	760,680	635,046
Repayment of indebtedness (Note 23)	(789,539)	(657,730)
Repurchase of common shares under Normal Course Issuer Bid (Note 30)	—	(9,942)
Payments for purchase of Used Digital Division minority interest	—	(22,500)
Treasury shares acquired (Note 30)	(5,178)	(1,625)
Shares settled from treasury (Note 30)	2,522	1,629
Acquisition of non-controlling interests	(8,490)	(5,486)
Repayment of loan by non-controlling interests	4,477	2,961
Dividends paid to non-controlling interests	(3,694)	(4,294)
Principal portion of lease payments	(31,374)	(31,984)
	(70,596)	(93,925)
Effect of exchange rate changes on cash	(1,217)	(1,359)
Net increase in cash	7,714	4,202
Cash at beginning of year per balance sheet	67,343	103,146
Cash at the beginning of year included in discontinued operations (Note 18)	40,005	—
Cash at end of year	115,062	107,348
Included in cash per balance sheet	87,963	67,343
Included in the assets of the discontinued operations (Note 18)	27,099	40,005

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional Non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used.

Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers.

We list and define these "NON-GAAP MEASURES" below:

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to:

Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization;
Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division);
Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities);
Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures, and real estate transactions); and
Charges that are non-recurring in nature (such as resolution of lawsuits and legal claims, and share-based compensation amounts attributable to certain equity issuances as part of the transformation plan).

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance over a period of time.

Adjusted EBITDA Margin

Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance.

The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale changes over a period of time.

Normalized Operating Expenses ("Opex") Before Depreciation

Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items:

Transaction costs related to acquisitions, dispositions, and open points;
Software implementation costs associated with the configuration or customization of software as a service arrangement;
Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency;
Management transition costs; and
Share-based compensation expense.

The Company considers this measure meaningful as it provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time.

Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit.

The Company considers this measure meaningful as it provides a comparison of our operating performance, normalized for transactions that are not indicative of the Company's operating expenses, with our growing profitability as our gross profit and scale changes over a period of time.

NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS
Adjusted EBITDA and Segmented Adjusted EBITDA
The following table illustrates segmented adjusted EBITDA for the three-month periods ended December 31:

	Three-Months Ended December 31, 2025			Three-Months Ended December 31, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Period from October 1 to December 31
Net (loss) income for the period	(2,227)	(12,328)	(14,555)	7,105	(45,471)	(38,366)
Add back (deduct):
Income tax expense	3,209	621	3,830	1,173	94	1,267
Depreciation of property and equipment	4,571	4	4,575	6,084	685	6,769
Interest on long-term indebtedness	7,746	831	8,577	7,509	3,141	10,650
Depreciation of right of use assets	8,113	—	8,113	8,536	1,008	9,544
Amortization of intangible assets	279	—	279	126	—	126
Lease liability interest	7,486	1,672	9,158	8,127	960	9,087
Impairment (recovery) of non-financial assets	4,919	1,486	6,405	(3,240)	5,192	1,952
(Gain) loss on redemption liabilities	(2,950)	—	(2,950)	1,113	—	1,113
Canadian franchise dealership and corporate restructuring charges	4,899	—	4,899	9,913	—	9,913
FTC settlement	—	—	—	—	27,396	27,396
Unrealized fair value changes on derivative instruments	(4,343)	—	(4,343)	5,491	—	5,491
Unrealized foreign exchange losses (gains)	2,092	—	2,092	(175)	—	(175)
Software implementation costs	330	—	330	531	—	531
Cybersecurity incident costs	468	—	468	567	—	567
RightRide restructuring charges	—	—	—	995	—	995
Write-down associated with wholesale transactions	—	—	—	7,592	—	7,592
Acquisition related costs	137	1,199	1,336	—	—	—
Share-based compensation for transformation plan awards	(153)	—	(153)	—	—	—
Realized foreign exchange gain on divested dealerships	—	38	38	—	—	—
Gain on disposal of assets	(1,725)	(25)	(1,750)	(7,352)	—	(7,352)
Adjusted EBITDA	32,851	(6,502)	26,349	54,095	(6,995)	47,100
Adjusted EBITDA from discontinued operations	87	6,267	6,354	284	6,995	7,279
Adjusted EBITDA from continuing operations	32,938	(235)	32,703	54,379	—	54,379

1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended December 31. There is no discontinued operation in Collision Operations.

	Three-Months Ended December 31, 2025			Three-Months Ended December 31, 2024
Collision Operations	Canada	U.S.	Total	Canada	U.S.	Total
Period from October 1 to December 31
Net income (loss) for the period	913	(236)	677	4,374	—	4,374
Add back (deduct):
Income tax expense	2,686	—	2,686	(448)	—	(448)
Depreciation of right of use assets	635	—	635	679	—	679
Depreciation of property and equipment	598	4	602	493	—	493
Amortization of intangible assets	11	—	11	—	—	—
Lease liability interest	860	—	860	851	—	851
Loss on disposal of assets	6	—	6	—	—	—
Adjusted EBITDA	5,709	(232)	5,477	5,949	—	5,949

Adjusted EBITDA Margin

The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended December 31:

	Three-Months Ended December 31, 2025			Three-Months Ended December 31, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Adjusted EBITDA	32,938	(235)	32,703	54,379	—	54,379
Revenue	1,116,291	273	1,116,564	1,265,837	—	1,265,837
Adjusted EBITDA Margin	3.0 %	(86.1) %	2.9 %	4.3 %	— %	4.3 %

1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit

The following tables illustrate segmented normalized opex before depreciation and normalized opex before depreciation as a percentage of gross profit from continuing operations for the three-month periods ended December 31:

	Three-Months Ended December 31, 2025			Three-Months Ended December 31, 2024 Revised ¹
	Canada	U.S.	Total	Canada	U.S.	Total
Operating expenses before depreciation	136,912	333	137,245	164,078	—	164,078
Normalizing Items:
Deduct:
Acquisition-related costs	(137)	—	(137)	(316)	—	(316)
Software implementation costs	(330)	—	(330)	(531)	—	(531)
Canadian franchise dealership and corporate restructuring charges	(4,899)	—	(4,899)	(9,913)	—	(9,913)
Share-based compensation expense	(389)	—	(389)	(1,759)	—	(1,759)
Normalized Opex before depreciation	131,157	333	131,490	151,559	—	151,559
Gross profit	173,877	93	173,970	216,118	—	216,118
Normalized Opex Before Depreciation as a percentage of gross profit (%)	75.4 %	358.1 %	75.6 %	70.1 %	— %	70.1 %

1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations.

Forward Looking Statements

Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) and the financial outlook with respect to the transformation plan are not all historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict.

Forward-looking statements and financial outlook in this press release include: AutoCanada's future financial position, expected run-rate operational expense savings from the implementation of the ACX Operating Method, the expected aggregate proceeds from the U.S. dealership divestitures, the completion and the anticipated timing of completion of the U.S. dealership disposition transactions, engagement in selling the remaining dealerships of the U.S. Operations segment, the impact of the U.S. dealership divestitures on the Company's leverage ratio, the anticipated timing of restoring Canadian dealership performance to levels more consistent with industry benchmarks, the impact of restoring Canadian dealership performance to levels more consistent with industry benchmarks on the Company's leverage ratio, and the expected accretive growth of collision operations.

Forward-looking statements and financial outlook provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements and financial outlook are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, including information obtained from third-party consultants and other third-party sources, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements and financial outlook, including AutoCanada's expected run-rate operational expense savings through the transformation plan, could prove to be incorrect or inaccurate.

In preparing the forward-looking statements and financial outlook, AutoCanada considered numerous economic, market and operational assumptions, including key assumptions listed under Section 3 Market and Financial Outlook of the MD&A.

The forward-looking statements and financial outlook are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements and financial outlook involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements or financial outlook. These risks and uncertainties include risks relating to failure to realize expected cost-savings, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the MD&A under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive.

Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements and financial outlook. Therefore, any such forward-looking statements and financial outlook are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A.

Details of the Company's material forward-looking statements and financial outlook are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website (www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference.

When relying on our forward-looking statements and financial outlook to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements and financial outlook are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or financial outlook.

About AutoCanada

AutoCanada's Canadian Operations segment operates 64 franchised dealerships in Canada, comprised of 23 automotive brands across 8 provinces as well as three independent used dealerships ("Used Vehicle Operations"). AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen vehicles. In 2025, our Canadian dealerships sold approximately 71,000 new and used retail vehicles.

In addition, AutoCanada's Canadian Operations segment operates 33 collision centres ("Collision Centres"), supported by 26 Original Equipment Manufacturer ("OEM") certifications covering 37 vehicle brands. The Company's collision platform enables customer retention across multiple touchpoints within the automotive ownership lifecycle.

AutoCanada's U.S. Operations segment, operating as Leader Automotive Group ("Leader"), operates 12 franchised dealerships comprised of 9 brands, in Illinois, USA. Leader currently sells Audi, Hyundai, Kia, Lincoln, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen branded vehicles. In 2025, our U.S. dealerships sold approximately 8,000 new and used retail vehicles.

Additional Information

Additional information about AutoCanada is available at the Company's website at www.autocan.ca and on the SEDAR+ website at www.sedarplus.ca.

SOURCE AutoCanada Inc.

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