AutoNation : First Quarter 2026 Earnings Conference Call and Audio Webcast Presentation

Published: 2026-05-01 10:21:08 ET AN

Published on 05/01/2026 at 10:21 am EDT

Earnings Release

May 1, 2026

After-Sales Gross Profit ($M)

CFS Gross Profit ($M)

New Gross Profit ($M)

Used Gross Profit ($M)

$568

$593

Q1 2025 Q1 2026

$353 $352

Q1 2025 Q1 2026

$175

$2,855

$2,703

$145

Q1 2025 Q1 2026

$125 $121

Q1 2025 Q1 2026

Record Q1 performance (up 5%)

Customer pay up 8%

Unit profitability up 6% YoY

Offsets volume decline

Unit profitability up 5% QoQ

Unit change (~9%) in-line with Retail SAAR

Unit profitability up 11% QoQ

Used : New ratio 1.15X (1.09X in Q1 2025)

Gross Margin Q1 2026 18.5% vs. Q1 2025 18.2%

AN Finance Profitability ($M)

Adjusted Free Cash Flow ($M)

Capital Allocation ($M)

Covenant Leverage

Q1 2025 Q1 2026

$237 $256

Q1 2025 Q1 2026

129%

155%

$370 $356

Q1 2025 Q1 2026

2.56X 2.57X

Q1 2025 Q1 2026

Portfolio $2.45B up 68%

Debt Funded Status 90%

Robust cash conversion (155%)

Efficient working capital

~$325M CapEx Run Rate

4% of Shares Repurchased in Q1

Targeted 2X - 3X range

Investment grade rating

Strong Start to 2026

($ in millions, except per share data)

Q1 2025

Q1 2026

Change

Total Revenue

$6,690

$6,552

(2%)

Tariff driven pull ahead in 2025

Gross Profit

$1,220

$1,211

(1%)

18.5% of revenue (up 30 bps)

Adj. SG&A Expense

67.5%

69.8%

(3%)

Marketing, strategic investments & self-insurance

Adj. Operating Income

$334

$312

(7%)

Margin 4.8%, ~100bps up from 2019

Adj. Net Income

$184

$165

(11%)

Excludes ~$40M gain on equity investments

Wtd. Avg. S/O

39.4

35.1

(11%)

$1.1B of repurchases since year end 2024

Diluted Adj. EPS

$4.68

$4.69

Fifth consecutive quarter of YoY growth

Revenue ($M) & Gross Margin (%)

$1,221

$1,164

48.8%

48.6%

Q1 2025

Q1 2026

Continued mid-single-digit growth

Higher repair order count and value per repair order

Customer Pay grew 8%

Gross margin rate stable

Improved technician retention, franchise technician headcount growth of 3% (SS)

Revenue ($M)

Gross Profit ($M) & Unit Profitability

$353

$352

$2,855

$2,703

Q1 2025

Q1 2026

Continued strong product and finance penetration

Unit profitability up 6% YoY to a Q1 record

Continued growth of AN Finance - superior long-term shareholder value

Unit profitability $~160 lower from ANF

penetration impact

Gross Profit ($M)

Profitability ($M)

Scaling High ROE Business

Portfolio Balance ($M)

AN Equity Funding (%)

Non-Recourse Debt Funded (%)

$2,445

$1,451

Q1 2025

Q1 2026

74%

90%

Scale benefits driving results with Q1 2026 OpEx 1.6% of portfolio (v 2.8% Q1 25)

$1B growth in portfolio YoY; 17% penetration

of deals financed in Q1 2026

Improving credit on underwritings - Q1 2026 FICO ~ 700

Second ABS closed January 2026 (~$750M)

Improving funding efficiency with portfolio now 90% debt-funded (v 74% a year ago)

Delinquencies in line with expectations

Retail Units & Unit Profitability

-8%

62,387

57,482

$2,803

$2,514

Q1 2025

Q1 2026

Industry retail units were down >8% YoY

BEV decline had a disproportionate impact to AN Premium Luxury units

BEV -53% / HEV -11% / ICE -4%

Domestic -5% / Import -4% / PL -16%

Unit profitability up 5% QoQ driven by improvements in Import and Premium Luxury

Vehicle supply at 46 days (v. Dec. 45 days)

Retail Units & Unit Profitability

-3%

68,000

65,818

$1,662

$1,594

Q1 2025

Q1 2026

Used : New unit ratio - 1.15X

<$20k units down 9%, > $40k units up 7%

Unit sales of 0 - 3-year-old vehicles up 6% YoY

Unit profitability increased >$150 QoQ

Vehicle supply at 35 days (v. Dec. 38 days)

Adj. FCF ($M) & Conversion (%)

$237

$256

155%

129%

Q1 2025

Q1 2026

Consistent, attractive cash conversion

profile (100+%)

Focused on working capital and cycle times (e.g. billing, time-to-auction, and service WIP)

CapEx $56M vs. $75M Q1 2025

Capital Allocation ($M)

Capital Expenditures

$75

$56

M&A

$70

Share Repurchases

$225

$300

Total

$370

$356

Continued strong cash conversion provides optionality

CapEx down 25% vs. Q1 2025 expected to be approx. flat for full year (~$325M)

Reduced shares outstanding by 11%+ from Q1 2025

Leverage 2.57X - stable from Q1 2025, within targeted range of 2X - 3X

First Quarter

2025

2026

Refer to the Appendix for Non-GAAP 12

Five consecutive quarters of increasing adjusted EPS

After Sales well positioned for continuing growth; technician and technology focus

Customer Financial Services sustaining performance

AN Finance portfolio scaling and profitability improving

Higher sequential new and used unit profitability

Maintaining strong profit to cash conversion

Shareholder-focused capital allocation and portfolio optimization

Investing in customer journey to enhance market position and growth trajectory

Poised to Continue Delivering Attractive Shareholder Returns

Appendix

Financials

Fundamentals

ANF

Premium Luxury

Import

Domestic

43%

32%

22%

Q1 26 Total Segment Income: $356 Million

12% 10%

Q1 26 Total Gross Profit: $1.2 Billion

49% 29%

30%

46%

19%

Q1 26 Total Revenue: $6.6 Billion

Used

New

CFS

After-Sales

Strong predictable cash flows with a disciplined capital

allocation strategy focused on total shareholder returns

Well positioned to capitalize on macro trends including pent-up vehicle demand, aging car PARC, population and driver growth

Large, highly profitable, and resilient After-Sales business with continued growth opportunity

Industry leading financing solutions complemented by a

captive finance business

Increased Used Vehicle penetration with a robust sourcing pipeline, and a used only business in AN USA

Great franchise brands in favorable locations with solid OEM relationships

Standardized practices and procedures, centralized store

support functions

AutoNation captures customer share of wallet and economics at multiple points of the vehicle ownership cycle

($ in millions)

Balance Sheet and Other Highlights

3/31/25

3/31/26

Cash and cash equivalents

$70

$65

Inventory

3,232

3,444

Floorplan notes payable

3,559

3,759

Auto loans receivable, net

1.398

2,371

Non-recourse debt (AN Finance Funding)

1,080

2,186

Non-vehicle debt

3,963

4,116

Equity

2,403

2,227

New days supply (industry standard of selling days)

Used days supply (trailing calendar month days)

Key Credit Agreement Covenant Compliance Calculations(1)

3/31/25

3/31/26

Leverage ratio

Covenant

Less than or equal to 3.75x

2.56x

2.57x

Interest coverage ratio

Covenant

Greater than or equal to 3.00x

4.33x

4.73x

Three Months Ended March 31, 2025, and March 31, 2026

Operating Income

2025 2026

Income Before Income Taxes

2025 2026

Income Tax Provision(2)

2025 2026

Effective Tax Rate

2025 2026

Net Income

2025 2026

Diluted Earnings Per Share(3)

2025 2026

As reported

336.0

314.3

234.0

275.7

58.5

70.3

25.0%

25.5%

175.5

205.4

4.45

5.85

Decrease in compensation expense related to market valuation changes in deferred compensation obligations(4)

(1.5)

(2.6)

Net (gain) loss on equity investments

11.5

(54.0)

2.8

(13.2)

8.7

(40.8)

0.22

(1.16)

Adjusted

$334.5

$311.7

$245.5

$221.7

$61.3

$57.1

25.0%

25.8%

$184.2

$164.6

$4.68

$4.69

Adjusted as % of Revenue 5.0% 4.8%

SG&A

2025 2026

SG&A as a Percentage of Gross Profit

(%)

2025 2026

As reported

821.9

842.2

67.4

69.5

Excluding:

Decrease in compensation expense related to market valuation changes in deferred compensation obligations

(1.5)

(2.6)

Adjusted

$823.4

$844.8

67.5

69.8

Please refer to the "Non-GAAP Financial Measures" section of the Press Release.

Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item.

Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.

Decreases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding losses 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. Losses related to the COLI are recorded in non-operating Other Income (Loss), Net.

($ in millions)

Free Cash Flow Reconciliation

2025

2026

Net cash provided by (used in) operating activities

Net Proceeds from (payments of) vehicle floorplan - non-trade Increase in auto loans receivable, net

Adj. cash provided by operating activities

Purchases of Property and Equipment

($52.5)

(0.9)

365.4

$22.2 36.3

253.5

312.0

(75.2)

312.0

(56.4)

Adj. Free Cash Flow

$236.8

$255.6

Adj. Net Income

$184.2

$164.6

Adj. FCF Conversion %

129%

155%

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

FY Avg.

Light Vehicle SAAR (mm)

13.1

10.3

11.5

12.6

14.3

15.4

16.4

17.4

17.5

17.1

17.2

17.0

14.5

14.9

13.7

15.6

15.9

16.3

15.0

New

Retail SAAR (mm)

10.6

8.6

9.2

10.3

11.7

12.8

13.6

14.2

14.1

13.9

13.7

12.4

13.1

11.7

12.7

13.0

13.5

12.4

Ending LV Inventory (mm)

3.2

1.9

2.3

2.4

3.0

3.4

3.5

3.9

3.7

3.8

3.5

2.7

1.1

1.7

2.3

2.8

2.6

2.9

Unit Sales (k)

255.8

183.4

206.5

224.0

267.8

292.9

318.0

339.1

337.6

329.1

310.8

282.6

249.7

262.4

230.0

244.5

254.7

259.3

ASP ($k)

$30.3

$31.2

$32.3

$33.5

$33.3

$34.0

$34.5

$35.4

$36.3

$37.0

$37.8

$39.5

$41.7

$46.0

$51.1

$52.2

$51.2

$52.1

New

Gross PVR

Margin

$1,997 6.6%

$2,106 6.8%

$2,185 6.8%

$2,445 7.3%

$2,164 6.5%

$2,104 6.2%

$2,044 5.9%

$1,985 5.6%

$1,883 5.2%

$1,788 4.8%

$1,660 4.4%

$1,783 4.5%

$2,340 5.6%

$4,579 9.9%

$5,942 11.6%

$4,342 8.3%

$3,045 5.9%

$2,564 4.9%

$2,609 6.5%

ASP Y/Y

-1%

10%

11%

-2%

Days Supply

Unit Sales (k)

181.3

135.3

160.1

171.1

181.0

204.6

214.9

227.3

225.7

234.1

237.7

246.1

241.2

304.4

299.8

274.0

265.9

269.6

ASP ($k)

$15.7

$16.3

$17.3

$17.8

$17.9

$18.1

$18.6

$19.2

$19.9

$19.5

$20.2

$21.0

$21.8

$26.5

$30.1

$27.9

$26.6

$27.0

Used

Gross PVR

Margin

$1,583

10.1%

$1,664

10.2%

$1,612

9.3%

$1,640

9.2%

$1,623

9.1%

$1,590

8.8%

$1,690

9.1%

$1,577

8.2%

$1,484

7.5%

$1,315

6.7%

$1,378

6.8%

$1,409

6.7%

$1,719

7.9%

$2,045

7.7%

$1,795

6.0%

$1,800

6.5%

$1,558

5.9%

$1,555

5.8%

$1,613

7.9%

ASP Y/Y

-2%

21%

14%

-7%

-5%

Days Supply

1.0

1.1

1.3

1.2

1.0

0.9

0.8

0.7

0.8

0.7

Used : New Units

Ratio

-5%

11%

13%

12%

$2,158 $2,443 $2,713 $2,736 $2,612 $2,769

$1,789 $1,935

$1,667

$1,355 $1,409 $1,534 $1,588

$1,273

$1,104 $1,102 $1,143 $1,201

0% 4% 5%

PVR PVR Y/Y

CFS

After-Sales

13%

14%

15%

$1,673 $1,900 $2,139 $2,209 $2,355

$1,461

-10%

$1,555 $1,623

$1,491

$1,435

12%

$1,197 $1,338

$1,106

10%

$970 $1,008

$963

$1,072 $935

-13%

Gross ($mm) Gross Y/Y

Cash From Ops ($mm) CapEx ($mm)

$685 $370 $252 $376 $317 $484 $485 $507 $516 $540

$97 $75 $150 $149 $161 $161 $209 $248 $245 $310

$511

$401

$769 $1,208 $1,628 $1,668

$269

$156

$216

$329

$724 $315 $112

$410 $329 $309

M&A ($mm) $32 - $73 $64 $142 $88 $205 $322 $410 $77 $67 $5 - $433 $192 $271 - $459

Share Repurchase ($mm) $54 $136 $524 $583 $581 $53 $485 $235 $497 $435 $100 $45 $382 $2,303 $1,710 $864 $460 $785

Disclaimer

AutoNation Inc. published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 14:20 UTC.