Dealership operational stabilization initiatives underway following leadership changes implemented in mid-February 2026, with sequential improvement in used vehicle performance observed through March and into April

First Quarter 2026 Financial Highlights

• Revenue from continuing operations was $1.19 billion as compared to $1.24 billion in the prior year
• Gross profit of $169.1 million, compared to $198.0 million in the prior year
• Gross profit percentage² of 14.2%, compared to 16.0% in the prior year
• Net loss from continuing operations of $(3.3) million, compared to net income of $9.7 million in the prior year
• Diluted net loss per share from continuing operations of $(0.15), compared to diluted net income per share of $0.37 in the prior year
• Adjusted EBITDA¹ from continuing operations of $31.0 million, compared to $43.0 million in the prior year
• Adjusted EBITDA margin¹ of 2.6%, compared to 3.5% in the prior year
• Operating expenses before depreciation² decreased (14.1)% year-over-year to $138.5 million
• Total Net Funded Debt to Bank EBITDA Ratio² of 3.96x at March 31, 2026
• Cash and available revolving credit capacity totaled approximately $357.5 million at quarter-end

Outlook Highlights

• Canadian automotive demand remained soft into the early part of the second quarter amid macroeconomic uncertainty
• Early signs of stabilization in dealership operations observed following leadership changes implemented in mid-February 2026, including sequential improvement in used vehicle performance through March and into April
• Collision operations continued to demonstrate resilient demand and margin characteristics
• The Company has received approximately $65.8 million in gross proceeds from completed U.S. dealership divestitures to date and expects total proceeds of approximately $130 million upon sale of remaining U.S. dealerships

EDMONTON, AB , May 13, 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 March 31, 2026.

"We entered 2026 focused on stabilizing dealership performance, improving operational execution, and strengthening our balance sheet, and we made meaningful progress against those priorities during the quarter," said Samuel Cochrane, Chief Executive Officer and Interim Chief Financial Officer of AutoCanada.

"While industry demand remained soft and profitability was impacted by expected pressure in used vehicle margins, we are encouraged by improving trends in used vehicle sales productivity, used vehicle profit per retail unit, operational efficiencies achieved through organizational changes implemented during the quarter, and the continued resilience of our collision platform.

We also advanced several important strategic initiatives, including progress on the divestiture of our U.S. dealership portfolio, expansion of our collision operations, and the successful amendment and extension of our syndicated credit facility. We believe these actions position the Company to reduce leverage and create a stronger operational foundation as we move through 2026."

OUTLOOK

Dealership Outlook

Canadian new light vehicle demand remained soft into the early part of the second quarter, extending trends observed in Q1 2026. Preliminary April industry data³ indicates a continued year-over-year decline in sales volumes (mid-single digit range), reflecting persistent macroeconomic headwinds, including elevated vehicle pricing, higher fuel costs, and ongoing consumer uncertainty. On a seasonally adjusted basis, national sales volumes remain below prior expectations and continue to normalize following demand pull-forward in early 2025.

Despite these conditions, management is encouraged by early signs of operational stabilization and sequential improvement across key dealership performance indicators. Since the appointment of new leadership in mid-February 2026, the Company has taken decisive actions to enhance its operating model, improve structural efficiencies, and refocus the organization on execution fundamentals. While momentum is building, management expects that achieving consistent target performance across all dealership operating categories will require sustained execution through the balance of 2026 and into early 2027.

Key areas of progress year-to-date include:

• March and April reflected improving used profitability trends, supported by higher used vehicle volumes, stronger gross profit per unit, and increased sales productivity per selling day.
• Actions taken in Q1 2026, including leadership changes and organizational streamlining, have improved operating efficiency and position the business to generate operating leverage as volumes recover.
• The addition of experienced regional and functional leaders is strengthening performance management and accountability at the dealership level.
• Improvements in used vehicle sourcing, inventory management, and sales efficiency are driving better throughput and margin stability, with continued opportunity in new vehicle performance, fixed operations absorption, and customer experience metrics.

While same-store new vehicle volumes remain under pressure and near-term industry conditions are expected to remain challenging, management believes the business is approaching an operational inflection point. The focus for the remainder of 2026 is on continuing to build momentum across key controllable drivers, including:

• Sales productivity and conversion
• Used vehicle acquisition and margin expansion
• Fixed operations growth and service bay utilization
• Inventory discipline and working capital efficiency
• Maintaining operating expense discipline while ensuring adequate frontline capacity

Overall, 2026 is expected to remain a transitional year for the dealership segment. However, actions taken in Q1 2026 have established a clearer path toward improved profitability and more consistent execution. As these initiatives continue to take hold, the Company expects to benefit from both internal operational improvements and eventual stabilization in broader industry demand.

Collision Outlook

Collision operations continue to demonstrate strong underlying growth characteristics, supported by stable demand that is less directly tied to new vehicle sales cycles and largely driven by insurance-related activity. While demand remains resilient, it is influenced by vehicle usage trends, including kilometers driven, which may be impacted by factors such as rising fuel costs.

Management views the segment as a strategically important platform, offering resilient margins and attractive consolidation opportunities within a highly fragmented market. As dealership operations stabilize, the Company intends to prioritize disciplined, accretive growth in collision through targeted acquisitions, subject to balance sheet capacity.

Momentum in the segment continued through Q1 2026 and into April, with progress across both organic and inorganic growth initiatives. The core collision business is performing well, however, overall segment performance continues to be impacted by weaker hail-related activity compared to the prior year, reflecting both the absence of significant hail events and challenging year-over-year comparisons. As the Company continues to scale its collision platform, management expects this weather-related volatility to diminish over time.

The Company continues to advance its collision growth strategy through a disciplined and strategic approach to acquisitions, with a focus on enhancing regional density and expanding OEM certification capabilities across its network. Recent acquisitions have strengthened the Company's presence in key markets and improved its ability to capture referral volumes through insurer and OEM relationships. The Company continues to evaluate additional opportunities that align with this strategy, with a focus on high-quality assets that support long-term platform optimization and margin expansion.

Operational execution remains a key focus, with continued expansion of OEM certifications and insurance relationships driving increased referral volumes. The Company added multiple OEM certifications during the quarter, with additional certifications in progress, and continues to expand its network of insurance direct repair program (DRP) partnerships, enhancing long-term demand visibility.

Looking ahead, management is focused on several key initiatives to drive sustained growth and margin expansion. These include scaling its apprenticeship program, advancing a national operating model, and expanding higher-margin service offerings such as diagnostics, calibrations, and coatings. In parallel, the Company is progressing its national brand rollout and strengthening its B2B strategy with national insurance partners and large-scale vendors.

With continued operational enhancements and a disciplined approach to expansion, the Company is well positioned to advance its collision growth strategy, reinforcing the segment as a key driver of long-term value creation.

U.S. Dealership Divestiture Update

The Company continues to make meaningful progress on the divestiture of its U.S. dealership portfolio, having received approximately $65.8 million in gross proceeds, net of working capital, to date. The Company has entered into a definitive agreement for 1 of the remaining 10 dealerships, while the remaining 9 franchised dealerships have letters of intent, representing approximately $65 million of expected proceeds net of working capital, including approximately $13 million of real estate. Total expected proceeds remain consistent at approximately $130 million, at the upper end of the previously disclosed range of $115 million to $130 million.

Proceeds from these transactions are expected to be directed toward debt reduction and to reinforce the Company's strategic focus on its core Canadian dealership and collision operations. All transactions remain subject to customary closing conditions, including OEM approvals. Upon completion, the divestiture program is expected to enhance financial flexibility, strengthen the balance sheet, and accelerate progress toward the Company's target leverage range of 2.0x to 3.0x Total Net Funded Debt to Bank EBITDA.

First Quarter Key Highlights and Recent Developments

Revenue decreased by (4.1)% in the first quarter of 2026 compared to the first quarter of 2025, primarily due to decreases in new vehicle sales, parts and service, F&I and collision repair services. This decline is partially offset by an increase in used vehicle sales.

Gross profit decreased by (14.6)% to $169.1 million in the first quarter of 2026 compared to the first quarter of 2025, 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 (14.1)% to $138.5 million in the first quarter of 2026 compared to the first quarter of 2025. Normalized operating expenses before depreciation¹ decreased by (5.4)% to $135.4 million, and included the normalization of $5.2 million of restructuring related charges.

Floorplan financing expenses decreased by (14.0)% to $8.8 million due to lower interest rates, partially offset by higher new and used vehicle inventory balances.

Net income for the period decreased by (134.0)% to a net loss of $(3.3) million in the first quarter of 2026 compared to $9.7 million in the first quarter of 2025, as a result of items noted above, and lower gain/(loss) on disposal of assets, lower gain on settlement of redemption liability, higher interest rate swap costs, and lower unrealized FX gains, partially offset by a higher fair value change in interest rate swaps and lower income taxes.

Adjusted EBITDA¹ decreased by (28.0)% to $31.0 million in the first quarter of 2026 compared to the first quarter of 2025, which is driven by a decline in new retail vehicles sold consistent in-part with industry trends, a strong comparative quarter due to tariff-related pull-forward and a focus on rebuilding sales productivity. Adjusted EBITDA margin¹ decreased by (0.9) percentage points ("ppts") to 2.6%. The decrease in margin was driven by decreases in gross profit, particularly used gross profit per unit sold as it worked through aged inventory, partially offset by lower operating expenses before depreciation² which was positively impacted by the forfeiture of stock based compensation due to the executive restructuring earlier in the year and lower floorplan financing expenses as noted above.

Collision Operations Highlights

Revenue decreased as a result of normalization of paintless dent repair following a severe hail event in 2024 which benefitted the first quarter of 2025, and this was partially offset by increased revenue from newly acquired stores and organic growth from traditional collision business.

Gross profit and gross profit percentage² increased driven by newly acquired stores, additional Original Equipment Manufacturer ("OEM") certifications and strong customer demand for traditional collision repair services, partially offset by gross profit normalization of lower-margin paintless dent repair business.

Trends in the same store revenue² and gross profit percentage² are consistent with overall business performance, with the reasons noted above. Same store gross profit² decreased driven by normalization of hail-related business.

Adjusted EBITDA¹ decreased as a result of the items noted above, as well as increased operating expenses which relate to new stores.

Automatic share purchase plan

In connection with its previously announced normal course issuer bid ("NCIB") to purchase up to 1,177,539 common shares, AutoCanada has entered into an automatic share purchase plan ("ASPP") with its designated broker. The ASPP has been pre-cleared by the TSX and will terminate on December 17, 2026, unless earlier terminated in accordance with its terms.

The ASPP is intended to allow for purchases of its common shares during certain pre-determined black-out periods, subject to certain parameters as to price and number of shares. Outside of these pre-determined black-out periods, shares will be repurchased in accordance with management's discretion, subject to applicable law.

AutoCanada's NCIB commenced on December 18, 2025 and will continue until December 17, 2026, when the bid expires, or such earlier date as the Corporation completes its purchases pursuant to the notice of intention filed with the TSX. All purchases of common shares made under the ASPP will be included in determining the number of common shares purchased under the NCIB. Any common shares purchased by the Corporation pursuant to the NCIB will be cancelled.

Other Recent Developments

During the quarter:

• On January 19, 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 Collision Operations segment.
• On January 26, 2026, the Company sold substantially all of the operating assets of Toyota of Lincoln Park, located in Chicago, Illinois, for cash consideration of $11.1 million plus closing adjustments. Toyota of Lincoln Park was previously presented as held for sale in the Dealership Operations segment.
• On February 18, 2026, the Company announced that its Board of Directors had appointed Samuel Cochrane as Chief Executive Officer, with immediate effect. Mr. Cochrane will also serve as Interim Chief Financial Officer until his successor is appointed.
• On March 23, 2026, the Company sold substantially all of the operating assets of Kia of Lincolnwood, located in Lincolnwood, Illinois, for cash consideration of $15.4 million plus closing adjustments. Kia of Lincolnwood was previously presented as held for sale in the Dealership Operations segment.
• On March 27, 2026, the Company obtained lender consent to change its syndicated credit agreement to increase the Company's maximum permitted Total Net Funded Debt to Bank EBITDA Ratio from 4.00:1.00 to 4.50:1.00 for the period from January 1, 2026 to June 30, 2026. On July 1, 2026, the Company's maximum permitted Total Net Funded Debt to Bank EBITDA Ratio will revert to 4.00:1.00.

After the quarter:

• On April 9, 2026, the Company sold substantially all of the operating assets of Hyundai of Lincolnwood, located in Lincolnwood, Illinois, for cash consideration of $3.1 million plus closing adjustments. Hyundai of Lincolnwood was previously presented as held for sale in the Dealership Operations segment.
• On April 22, 2026, the Company amended and restated its syndicated credit agreement. The amended credit facility decreased the revolving floorplan facility to $1,000 million for total aggregate bank facilities of $1,380 million. The amendment includes the removal of the borrowing base and goodwill-based revolving credit structure, increased the Company's maximum permitted Total Net Funded Debt to Bank EBITDA Ratio to 5.00, increased the Company's maximum permitted Senior Net Funded Debt to Bank EBITDA Ratio to 3.50, includes changes to the definition of Bank EBITDA to expand allowable add-backs, other administrative changes, and the term was extended to November 22, 2028.
• On May 7, 2026, the Company announced the appointment of Mike Woodward as Chief Financial Officer, effective July 6, 2026.
• On May 13, 2026, in connection with its previously announced NCIB, AutoCanada entered into an automatic share purchase plan ("ASPP") with its designated broker. The ASPP will terminate on December 17, 2026, unless earlier terminated in accordance with its terms.

Conference Call

A conference call to discuss the results for the three months ended March 31, 2026 will be held on May 13, 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/2026-q1-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 ended March 31, 2026, 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 March 31, 2026 and the three-month period ended March 31, 2025, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(in thousands of Canadian dollars except for share and per share amounts)

Consolidated Statements of Comprehensive (Loss) Income (continued)
(Unaudited)
(in thousands of Canadian dollars except for share and per share amounts)

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 .

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

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 .

Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
(in thousands of Canadian dollars)

Condensed Interim Consolidated Statements of Cash Flows (continued)
(Unaudited)
(in thousands of Canadian dollars)

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 .

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);
• 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

The following table illustrates segmented adjusted EBITDA for the three-month period ended March 31:

Adjusted EBITDA Margin

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

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

The following table illustrates 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 March 31:

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, 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.

The financial outlook with respect to dealership operations is disclosed to assist current and future shareholders to evaluate the effectiveness of AutoCanada's dealership operating model enhancements and initiatives and readers are cautioned that it may not be suitable for any other purpose. Dealership operating model enhancements and initiatives, the completion, and the anticipated timing of completion, are based on the assumptions that improving sales productivity, improving used vehicle margins, fixed operations growth, improving service bay utilization rates, and operating expense cost discipline will improve dealership performance. Additional key assumptions or risk factors with respect to improvements in the dealership operating model include the risk of economic stability and other external factors, which may delay progress toward the Company's targeted 2.0x-3.0x Total Net Funded Debt to Bank EBITDA leverage ratio.

The financial outlook with respect to the accretive growth of collision operations is disclosed to assist current and future shareholders to evaluate the effectiveness of AutoCanada's collision growth plan and readers are cautioned that it may not be suitable for any other purposes. The expected accretive growth of collision operations and the anticipated timing is based on the assumptions that acquisition opportunities remain available, attractive and accretive, newly acquired collision centres are being integrated effectively, and financing continues to be accessible on reasonable and acceptable terms. Additional key assumptions or risk factors with respect to the accretive growth of collision operations is the willingness of sellers, economic and industry stability, and other external factors.

Forward-looking statements with respect to the expected aggregate proceeds from the U.S. dealership divestitures, the anticipated timing of completion of the U.S. disposition transactions, and the engagement in selling the remaining U.S. dealerships is disclosed to assist current and future shareholders to evaluate the effectiveness of the U.S. divestiture strategy and readers are cautioned that it may not be suitable for any other purpose. The expected aggregate proceeds from the U.S. dealership divestitures, the anticipated timing of completion of the U.S. disposition transactions, and the engagement in selling the remaining dealerships of the U.S. dealerships are based on the assumptions that customary closing conditions will be satisfied, and OEM approvals will be secured. Additional key assumptions or risk factors with respect to the successful execution of our U.S. divestiture strategy is the willingness of buyers, economic stability, and other external factors.

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,  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 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 Dealership 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. AutoCanada'sU.S. franchise dealerships, operating as Leader Automotive Group ("Leader"), operates 10 franchised dealerships comprised of 7 brands, in Illinois, USA. In 2025, our U.S. dealerships sold approximately 8,000 new and used retail vehicles. Leader is classified as discontinued operations as the Company progresses the sale of its U.S. dealership portfolio.

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

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.

For further information contact:

Samuel Cochrane, Chief Executive Officer and Interim Chief Financial Officer

Phone:    604.910.5509

Email:    scochrane@autocan.ca

SOURCE AutoCanada Inc.