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AutoNation, Inc. (NYSE: AN) doubles Q2 profit on strong EPS growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

AutoNation, Inc. reported second quarter 2026 revenue of $6.93 billion, down 1% from a year earlier, while GAAP net income rose to $182.1 million and diluted EPS to $5.39. Adjusted EPS was $5.56, slightly above $5.46 a year ago.

Management highlighted record After-Sales gross profit and continued strength in Customer Financial Services. AutoNation Finance grew its portfolio to 2.7 billion, generating income of $10.7 million versus $2.0 million a year earlier. Retail new and used unit sales declined around 4–8% year over year, and new-vehicle gross profit per unit fell about 14–15%, pressuring variable operations margins.

For the first half of 2026, revenue was $13.48 billion and net income $387.5 million. Adjusted free cash flow reached $439.2 million, equal to 125% of adjusted net income. The company repurchased 2.3 million shares for $457 million and completed acquisitions adding about $600 million of annual revenue. Liquidity totaled $1.0 billion with a covenant leverage ratio of 2.77x.

Positive

  • GAAP net income $182.1 million and diluted EPS $5.39 increased sharply from $86.4 million and $2.26 in Q2 2025, despite slightly lower revenue.
  • AutoNation Finance portfolio 2.7 billion with quarterly finance income of $10.7 million versus $2.0 million a year earlier, indicating significant growth in in-house financing.
  • Adjusted free cash flow $439.2 million in the first half of 2026, equal to 125% of adjusted net income, while funding $457 million of share repurchases and acquisitions representing about $600 million of annual revenue.

Negative

  • Revenue $6.93 billion declined 1% year over year, with gross profit down 3% and same-store revenue down 2–3% for the quarter and first half.
  • Retail new and used vehicle unit sales decreased by 4–8% year over year, and new-vehicle gross profit per unit fell about 14–15%, weighing on variable operations profitability.
  • Non-vehicle debt $4.43 billion increased from $3.98 billion at December 31, 2025, while equity declined to $2.26 billion, leaving the business more leveraged even though covenants are met.

Filing Explained

At June 30, reported liquidity included cash plus revolving-credit availability while auto-loan growth and acquisition spending absorbed capital despite $439.2 million adjusted free cash flow.

AutoNation used this Form 8-K to report completed results for the quarter ended June 30, 2026, under Item 2.02, which covers specified material events.

Although the release described cash flow as strong, it reported net cash used in operating activities; adjusted free cash flow was $439.2 million after including floorplan proceeds and an increase in auto loans receivable, less $126.0 million of capital expenditures.

At June 30, 2026, the filing reported cash, net auto loans receivable, non-vehicle debt, and equity; the reported $1.0 billion liquidity therefore included revolving-credit availability, not cash alone.

The company reported cash paid for acquisitions; the acquired dealerships were described as adding approximately $600 million of annual revenue and 9,700 annual retail vehicle sales.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $6,929.8 million Three months ended June 30, 2026; down 1% vs Q2 2025
Q2 2026 Net Income $182.1 million Three months ended June 30, 2026 vs $86.4 million in Q2 2025
Q2 2026 Diluted EPS $5.39 GAAP diluted earnings per share for the quarter vs $2.26 in Q2 2025
Q2 2026 Adjusted Diluted EPS $5.56 Non-GAAP EPS for the quarter vs $5.46 in Q2 2025
AutoNation Finance Portfolio 2.7 billion Size of AutoNation Finance portfolio as described for Q2 2026
Adjusted Free Cash Flow H1 2026 $439.2 million Six months ended June 30, 2026; 125% of adjusted net income
Share Repurchases H1 2026 $457.0 million 2.3 million shares repurchased in first half 2026 at $200.59 per share
Covenant Leverage Ratio 2.77x Key credit agreement leverage ratio vs 3.75x maximum covenant
Adjusted free cash flow financial
"Adjusted free cash flow was $439.2 million, or 125% of adjusted net income."
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
floorplan interest expense financial
"Floorplan interest expense was (43.7) in Q2 2026 and (45.3) in Q2 2025."
Floorplan interest expense is the cost a dealer or seller pays in interest on short-term loans used to buy inventory, such as vehicles or heavy equipment, before those items are sold. Think of it like a retailer paying interest on a credit line to stock its shelves: the longer inventory sits unsold, the more interest accrues. Investors watch this number because it reduces profit, drains cash flow, and can signal financing stress or slower sales if it grows relative to revenue.
non-vehicle debt financial
"The Company had $4.4 billion of non-vehicle debt outstanding."
AutoNation Finance income financial
"AutoNation Finance income was 10.7 in Q2 2026 compared with 2.0 a year ago."
covenant leverage ratio financial
"The Company’s covenant leverage ratio was 2.8X at quarter-end."
A covenant leverage ratio is a borrower's pledged rule that compares how much debt a company carries to its ability to generate earnings, essentially a numeric cap set by lenders to keep borrowing in check. It matters to investors because crossing that cap can trigger penalties, higher interest, or lender control actions—similar to a weight limit on a bridge that, if exceeded, forces traffic restrictions and costly repairs.
Revenue $6,929.8 million -1% year over year vs $6,974.4 million in Q2 2025
Gross profit $1,231.1 million -3% vs $1,275.4 million in Q2 2025
Operating income $319.0 million up 47% vs $217.6 million in Q2 2025
GAAP net income $182.1 million vs $86.4 million in Q2 2025
GAAP diluted EPS $5.39 vs $2.26 in Q2 2025
Adjusted diluted EPS $5.56 2% higher than $5.46 in Q2 2025

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FAQ

How did AutoNation (AN) perform in Q2 2026?
AutoNation reported Q2 2026 revenue of $6.93 billion, down 1% year over year, and GAAP net income of $182.1 million. Diluted EPS was $5.39, compared with $2.26 in Q2 2025, while adjusted EPS was $5.56 versus $5.46.

What was AutoNation (AN) adjusted EPS and profitability trend in Q2 2026?
Adjusted diluted EPS in Q2 2026 was $5.56, slightly above $5.46 a year earlier. However, adjusted operating income $343.1 million and adjusted net income $187.8 million declined 7% and 10% year over year, reflecting softer volumes and margin pressure.

How much cash did AutoNation (AN) generate and return to shareholders in 2026 year-to-date?
For the first half of 2026, AutoNation generated $439.2 million of adjusted free cash flow, equal to 125% of adjusted net income. The company repurchased 2.3 million shares for $457 million and completed acquisitions representing approximately $600 million of annual revenue.

How is AutoNation Finance performing for AutoNation (AN)?
AutoNation Finance grew its portfolio to 2.7 billion and delivered Q2 2026 income of $10.7 million, up from $2.0 million a year ago. Interest and fee income reached $68.6 million for the quarter, with total interest margin after provisions improving significantly.

What is AutoNation (AN) liquidity and leverage as of June 30, 2026?
As of June 30, 2026, AutoNation had $1.0 billion of liquidity, including $53 million in cash and $0.9 billion of revolver availability. The covenant leverage ratio was 2.77x, comfortably within the 3.75x limit, with $4.43 billion of non-vehicle debt outstanding.

How did AutoNation (AN) unit sales and per-vehicle margins change in Q2 2026?
In Q2 2026, retail new vehicle unit sales fell 4.0% and retail used units declined 7.5% year over year. New-vehicle gross profit per vehicle dropped from $2,785 to $2,381, and used-vehicle gross profit per unit declined slightly, pressuring overall margins.
false000035069800003506982026-07-312026-07-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date Of Report (Date Of Earliest Event Reported) July 31, 2026  
AUTONATION, INC.
(Exact name of registrant as specified in its charter)
 
Delaware 1-13107 73-1105145
(State or other jurisdiction
of incorporation)		 (Commission     
File Number)     		 (IRS Employer
Identification No.)
200 SW 1st Ave
Fort Lauderdale, Florida 33301
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (954) 769-6000
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareANNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02Results of Operations and Financial Condition.
On July 31, 2026, AutoNation, Inc. (the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits

99.1    Press Release of AutoNation, Inc. dated July 31, 2026, regarding results of operations for the fiscal quarter ended June 30, 2026.
104        Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 AUTONATION, INC.
Date:July 31, 2026 By: /s/ C. Coleman Edmunds
  C. Coleman Edmunds
  Executive Vice President, General Counsel and Corporate Secretary



Exhibit 99.1

imagea.jpg
 
Investor Contact: Derek Fiebig
(954) 769-2227
fiebigd@autonation.com

Media Contact: Lisa Rhodes Ryans
(954) 769-4120
publicrelations@autonation.com

AutoNation Reports Second Quarter 2026 Results
•Q2 2026 EPS $5.39 and Adjusted EPS $5.56
•Sixth consecutive quarter of Adjusted EPS growth
•Record After-Sales gross profit; Customer Pay growth 7%
•CFS gross profit per unit up 3%
•AN Finance portfolio growth 50%+, YTD profit up 10X
•Acquired four dealerships, adding attractive scale ($600M revenue), brands, and density
•First half 2026 share repurchases of $457 million, 6%+ reduction of shares

FORT LAUDERDALE, Fla., (July 31, 2026) — AutoNation, Inc. (NYSE: AN) today reported second quarter 2026 revenue of $6.9 billion, a decrease of 1% compared to the same period a year ago. Second quarter 2026 EPS was $5.39, compared to $2.26 a year ago, and second quarter 2026 Adjusted EPS was $5.56, compared to $5.46 a year ago. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

“We are pleased to report another quarter of strong performance, including record profit in After-Sales and continued strength in Customer Financial Services,” said Mike Manley, Chief Executive Officer of AutoNation. “Cash flow was strong, and we deployed significant capital for share repurchases and acquisitions to improve density in existing markets. AutoNation Finance continued to scale, growing the portfolio to $2.7 billion while substantially improving profitability. We are focused on continued execution, attractive cash flow generation, and disciplined capital allocation to consistently generate attractive shareholder returns,” Manley concluded.

Operational Summary
Second quarter 2026 compared to the year-ago period:
Selected GAAP Financial Data
(In millions, except per share data and unit sales)
Three Months Ended June 30,
20262025YoY
Revenue$6,929.8 $6,974.4 -1%
Gross Profit$1,231.1 $1,275.4 -3%
Operating Income$319.0 $217.6 47%
Net Income$182.1 $86.4 111%
Diluted EPS$5.39 $2.26 138%
Diluted weighted average common shares outstanding
33.838.3-12%
Same-store Revenue$6,816.5 $6,923.5 -2%
Same-store Gross Profit$1,207.6 $1,266.5 -5%
Same-store New Vehicle Retail Unit Sales62,435 65,533 -5%
Same-store Used Vehicle Retail Unit Sales63,428 68,917 -8%




Selected Non-GAAP Financial Data*
($ in millions, except per share data)
Three Months Ended June 30,
20262025YoY
Adjusted Operating Income$343.1 $369.3 -7%
Adjusted Net Income$187.8 $209.2 -10%
Adjusted Diluted EPS$5.56 $5.46 2%
*Reconciliations of non-GAAP financial measures are included in the attached financial tables. 2026 Adjusted Diluted EPS excludes items related to property and store divestitures of $5.7 million after tax.

Year-to-date 2026 compared to the year-ago period:
Selected GAAP Financial Data
(In millions, except per share data and unit sales )
Six Months Ended June 30,
20262025YoY
Revenue$13,481.9 $13,664.8 -1%
Gross Profit$2,442.2 $2,495.3 -2%
Operating Income$633.3 $553.6 14%
Net Income$387.5 $261.9 48%
Diluted EPS$11.26 $6.73 67%
Diluted weighted average common shares outstanding
34.438.9-12%
Same-store Revenue$13,206.7 $13,557.4 -3%
Same-store Gross Profit$2,388.4 $2,476.9 -4%
Same-store New Vehicle Retail Unit Sales118,682 127,598 -7%
Same-store Used Vehicle Retail Unit Sales127,312 135,982 -6%
Selected Non-GAAP Financial Data*
($ in millions, except per share data)
Six Months Ended June 30,
20262025YoY
Adjusted Operating Income$654.8 $703.7 -7%
Adjusted Net Income$352.4 $393.4 -10%
Adjusted Diluted EPS$10.24 $10.11 1%
*Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Capital Allocation, Liquidity, and Leverage
For the first six months ended June 30, 2026, cash used in operating activities was $48.9 million, auto loans receivable, net, increased $493.6 million, capital expenditures were $126.0 million, and adjusted free cash flow was $439.2 million, or 125% of adjusted net income.

In June 2026, AutoNation acquired a Toyota dealership in the Atlanta area and three Premium Luxury stores in the San Francisco Bay area adding scale and density to these key markets. These acquisitions represent approximately $600 million in annual revenue and 9,700 retail new and used vehicle annual unit sales.

During the first half of 2026, AutoNation repurchased 2.3 million shares for an aggregate purchase price of $457 million or $200.59 per share. Year-to-date through July 29, 2026, AutoNation repurchased 2.3 million shares for an aggregate purchase price of $470 million or $200.46 per share.



As of June 30, 2026, AutoNation had $1.0 billion of liquidity, including $53 million in cash and $0.9 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company’s covenant leverage ratio was 2.8X at quarter-end (2.7X net of cash), and the Company had $4.4 billion of non-vehicle debt outstanding.

The second quarter conference call may be accessed by telephone at 833-461-5787 (Conference ID: 436930872) at 9:00 a.m. Eastern Time today or on AutoNation’s investor relations website at investors.autonation.com. The webcast will also be made available on AutoNation’s investor relations website following the call under “Events & Presentations.” Finally, additional information regarding AutoNation’s results can be found in the Investor Presentation available on the investor relations website.

About AutoNation, Inc.
AutoNation, one of the largest automotive retailers in the United States, offers innovative products and exceptional services as part of a portfolio of comprehensive solutions for our customers and their automotive needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised over $50 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

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

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “estimates,” “intends,” “goals,” “targets,” “projects,” “plans,” “believes,” “continues,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, and investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including with respect to After-Sales, Customer Financial Services, new and used vehicle volume and profitability, SG&A as a percentage of total gross profit, earnings per share, and shareholder returns, as well as 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; safety recalls, legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; changes in automotive laws and regulations affecting our business, including fuel economy requirements; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
 
 Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Revenue:
New vehicle$3,292.7 $3,396.3 $6,303.7 $6,644.4 
Used vehicle2,011.4 1,985.0 3,975.2 3,907.4 
Parts and service1,263.0 1,221.1 2,483.9 2,385.1 
Finance and insurance, net357.6 367.7 709.6 720.2 
Other5.1 4.3 9.5 7.7 
Total revenue6,929.8 6,974.4 13,481.9 13,664.8 
Cost of sales:
New vehicle3,142.1 3,212.9 6,008.6 6,286.1 
Used vehicle1,896.3 1,859.6 3,738.7 3,657.5 
Parts and service655.9 622.5 1,283.4 1,218.8 
Other4.4 4.0 9.0 7.1 
Total cost of sales5,698.7 5,699.0 11,039.7 11,169.5 
Gross profit1,231.1 1,275.4 2,442.2 2,495.3 
AutoNation Finance income
10.7 2.0 20.1 2.1 
Selling, general, and administrative expenses856.3 854.7 1,698.5 1,676.6 
Depreciation and amortization63.5 63.9 126.5 125.7 
Goodwill impairment— 65.3 — 65.3 
Franchise rights impairment— 71.7 — 71.7 
Other expense, net(1)
3.0 4.2 4.0 4.5 
Operating income319.0 217.6 633.3 553.6 
Non-operating income (expense) items:
Floorplan interest expense(43.7)(45.3)(85.5)(91.8)
Other interest expense(49.9)(46.2)(97.9)(88.5)
Other income (loss), net(2)
18.4 12.3 69.6 (0.9)
Income before income taxes243.8 138.4 519.5 372.4 
Income tax provision61.7 52.0 132.0 110.5 
Net income$182.1 $86.4 $387.5 $261.9 
Diluted earnings per share
$5.39 $2.26 $11.26 $6.73 
Diluted weighted average common shares outstanding
33.8 38.3 34.4 38.9 
Common shares outstanding, net of treasury stock, at period end33.1 37.7 33.1 37.7 

(1)Includes asset impairments and net gains on business/property divestitures.
(2)Includes net gains and losses on minority equity investments, as well as net gains related to changes in the cash surrender value of corporate-owned life insurance for deferred compensation plan participants.




AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions, except per vehicle data)
Operating HighlightsThree Months Ended June 30,Six Months Ended June 30,
 20262025$ Variance% Variance20262025$ Variance% Variance
Revenue:
New vehicle$3,292.7 $3,396.3 $(103.6)(3.1)$6,303.7 $6,644.4 $(340.7)(5.1)
Retail used vehicle1,850.1 1,845.0 5.1 0.3 3,669.7 3,637.1 32.6 0.9 
Wholesale161.3 140.0 21.3 15.2 305.5 270.3 35.2 13.0 
Used vehicle2,011.4 1,985.0 26.4 1.3 3,975.2 3,907.4 67.8 1.7 
Finance and insurance, net357.6 367.7 (10.1)(2.7)709.6 720.2 (10.6)(1.5)
Total variable operations5,661.7 5,749.0 (87.3)(1.5)10,988.5 11,272.0 (283.5)(2.5)
Parts and service1,263.0 1,221.1 41.9 3.4 2,483.9 2,385.1 98.8 4.1 
Other5.1 4.3 0.8 9.5 7.7 1.8 
Total revenue$6,929.8 $6,974.4 $(44.6)(0.6)$13,481.9 $13,664.8 $(182.9)(1.3)
Gross profit:
New vehicle$150.6 $183.4 $(32.8)(17.9)$295.1 $358.3 $(63.2)(17.6)
Retail used vehicle102.1 113.1 (11.0)(9.7)207.0 226.1 (19.1)(8.4)
Wholesale13.0 12.3 0.7 29.5 23.8 5.7 
Used vehicle115.1 125.4 (10.3)(8.2)236.5 249.9 (13.4)(5.4)
Finance and insurance357.6 367.7 (10.1)(2.7)709.6 720.2 (10.6)(1.5)
Total variable operations623.3 676.5 (53.2)(7.9)1,241.2 1,328.4 (87.2)(6.6)
Parts and service607.1 598.6 8.5 1.4 1,200.5 1,166.3 34.2 2.9 
Other0.7 0.3 0.4 0.5 0.6 (0.1)
Total gross profit1,231.1 1,275.4 (44.3)(3.5)2,442.2 2,495.3 (53.1)(2.1)
AutoNation Finance income
10.7 2.0 8.7 20.1 2.1 18.0 
Selling, general, and administrative expenses856.3 854.7 (1.6)(0.2)1,698.5 1,676.6 (21.9)(1.3)
Depreciation and amortization63.5 63.9 0.4 126.5 125.7 (0.8)
Goodwill impairment— 65.3 65.3 — 65.3 65.3 
Franchise rights impairment— 71.7 71.7 — 71.7 71.7 
Other expense, net3.0 4.2 1.2 4.0 4.5 0.5 
Operating income319.0 217.6 101.4 46.6 633.3 553.6 79.7 14.4 
Non-operating income (expense) items:
Floorplan interest expense(43.7)(45.3)1.6 (85.5)(91.8)6.3 
Other interest expense(49.9)(46.2)(3.7)(97.9)(88.5)(9.4)
Other income (loss), net18.4 12.3 6.1 69.6 (0.9)70.5 
Income before income taxes$243.8 $138.4 $105.4 76.2 $519.5 $372.4 $147.1 39.5 
Retail vehicle unit sales:
New63,240 65,847 (2,607)(4.0)120,722 128,234 (7,512)(5.9)
Used64,521 69,736 (5,215)(7.5)130,339 137,736 (7,397)(5.4)
127,761 135,583 (7,822)(5.8)251,061 265,970 (14,909)(5.6)
Revenue per vehicle retailed:
New$52,067 $51,579 $488 0.9 $52,217 $51,815 $402 0.8 
Used$28,674 $26,457 $2,217 8.4 $28,155 $26,406 $1,749 6.6 
Gross profit per vehicle retailed:
New$2,381 $2,785 $(404)(14.5)$2,444 $2,794 $(350)(12.5)
Used$1,582 $1,622 $(40)(2.5)$1,588 $1,642 $(54)(3.3)
Finance and insurance$2,799 $2,712 $87 3.2 $2,826 $2,708 $118 4.4 
Total variable operations(1)
$4,777 $4,899 $(122)(2.5)$4,826 $4,905 $(79)(1.6)
(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 PercentagesThree Months Ended June 30,Six Months Ended June 30,
 2026 (%)2025 (%)2026 (%)2025 (%)
Revenue mix percentages:
New vehicle47.5 48.7 46.8 48.6 
Used vehicle29.0 28.5 29.5 28.6 
Parts and service18.2 17.5 18.4 17.5 
Finance and insurance, net5.2 5.3 5.3 5.3 
Other0.1 — — — 
100.0 100.0 100.0 100.0 
Gross profit mix percentages:
New vehicle12.2 14.4 12.1 14.4 
Used vehicle9.3 9.8 9.7 10.0 
Parts and service49.3 46.9 49.1 46.7 
Finance and insurance29.0 28.8 29.1 28.9 
Other0.2 0.1 — — 
100.0 100.0 100.0 100.0 
Operating items as a percentage of revenue:
Gross profit:
New vehicle4.6 5.4 4.7 5.4 
Used vehicle - retail5.5 6.1 5.6 6.2 
Parts and service48.1 49.0 48.3 48.9 
Total17.8 18.3 18.1 18.3 
Selling, general, and administrative expenses
12.4 12.3 12.6 12.3 
Operating income4.6 3.1 4.7 4.1 
Operating items as a percentage of total gross profit:
Selling, general, and administrative expenses
69.6 67.0 69.5 67.2 
Operating income25.9 17.1 25.9 22.2 
 










AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions) 
Segment Operating HighlightsThree Months Ended June 30,Six Months Ended June 30,
 20262025$ Variance% Variance20262025$ Variance% Variance
Revenue:
Domestic$1,793.1 $1,920.5 $(127.4)(6.6)$3,509.7 $3,637.9 $(128.2)(3.5)
Import2,233.1 2,148.3 84.8 3.9 4,281.2 4,195.6 85.6 2.0 
Premium luxury2,579.7 2,555.8 23.9 0.9 5,021.2 5,132.3 (111.1)(2.2)
Total Franchised Dealerships
6,605.9 6,624.6 (18.7)(0.3)12,812.1 12,965.8 (153.7)(1.2)
Corporate and other323.9 349.8 (25.9)(7.4)669.8 699.0 (29.2)(4.2)
Total consolidated revenue$6,929.8 $6,974.4 $(44.6)(0.6)$13,481.9 $13,664.8 $(182.9)(1.3)
Segment income(1):
Domestic$74.0 $92.0 $(18.0)(19.6)$152.1 $161.0 $(8.9)(5.5)
Import123.5 133.4 (9.9)(7.4)237.3 259.6 (22.3)(8.6)
Premium luxury156.9 180.1 (23.2)(12.9)311.7 358.8 (47.1)(13.1)
Total Franchised Dealerships
354.4 405.5 (51.1)(12.6)701.1 779.4 (78.3)(10.0)
AutoNation Finance income10.7 2.0 8.7 20.1 2.1 18.0 
Corporate and other(89.8)(235.2)145.4 (173.4)(319.7)146.3 
Add: Floorplan interest expense43.7 45.3 (1.6)85.5 91.8 (6.3)
Operating income$319.0 $217.6 $101.4 46.6 $633.3 $553.6 $79.7 14.4 
(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:
Domestic17,080 19,354 (2,274)(11.7)32,938 36,132 (3,194)(8.8)
Import30,060 29,748 312 1.0 56,839 57,751 (912)(1.6)
Premium luxury16,100 16,745 (645)(3.9)30,945 34,351 (3,406)(9.9)
63,240 65,847 (2,607)(4.0)120,722 128,234 (7,512)(5.9)
Retail used vehicle unit sales:
Domestic17,315 19,752 (2,437)(12.3)35,222 38,176 (2,954)(7.7)
Import22,955 23,392 (437)(1.9)45,989 46,547 (558)(1.2)
Premium luxury18,213 19,016 (803)(4.2)36,387 38,033 (1,646)(4.3)
Other6,038 7,576 (1,538)(20.3)12,741 14,980 (2,239)(14.9)
64,521 69,736 (5,215)(7.5)130,339 137,736 (7,397)(5.4)
Brand Mix - Retail New Vehicle Units SoldThree Months EndedSix Months Ended
June 30,June 30,
 2026 (%)2025 (%)2026 (%)2025 (%)
Domestic:
Ford, Lincoln11.9 12.9 11.9 12.1 
Chevrolet, Buick, Cadillac, GMC10.0 11.3 10.2 11.0 
Chrysler, Dodge, Jeep, Ram5.1 5.2 5.2 5.1 
Domestic total27.0 29.4 27.3 28.2 
Import:
Toyota23.5 21.2 23.1 20.7 
Honda12.7 12.8 12.5 12.7 
Hyundai3.5 3.5 3.4 3.5 
Subaru3.7 3.3 3.8 3.7 
Other Import4.1 4.4 4.3 4.4 
Import total47.5 45.2 47.1 45.0 
Premium Luxury:
Mercedes-Benz8.7 8.5 8.9 9.1 
BMW8.8 8.3 8.7 8.7 
Lexus3.1 3.5 3.1 3.5 
Audi1.7 1.6 1.7 1.9 
Jaguar Land Rover1.8 1.9 1.9 2.0 
Other Premium Luxury1.4 1.6 1.3 1.6 
Premium Luxury total25.5 25.4 25.6 26.8 
100.0 100.0 100.0 100.0 


AutoNation FinanceThree Months Ended June 30,Six Months Ended June 30,
 20262025$ Variance20262025$ Variance
Interest margin:
Interest and fee income$68.6 $48.6 $20.0 $131.3 $90.5 $40.8 
Interest expense(27.1)(17.8)(9.3)(51.5)(31.7)(19.8)
Total interest margin41.5 30.8 10.7 79.8 58.8 21.0 
Provision for credit losses(20.1)(19.2)(0.9)(39.6)(38.1)(1.5)
Total interest margin after provision for loan losses21.4 11.6 9.8 40.2 20.7 19.5 
Direct expenses(1)
(10.7)(9.6)(1.1)(20.1)(18.6)(1.5)
AutoNation Finance income$10.7 $2.0 $8.7 $20.1 $2.1 $18.0 
(1) Direct expenses are comprised primarily of compensation expense and loan administration costs incurred by our auto finance company.


 AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions)
 
Capital Allocation
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Capital expenditures$69.6 $79.0 $126.0 $154.2 
Cash paid for acquisitions, net of cash acquired $316.5 $— 

$316.5 $69.6 
Cash received from divestitures, net of cash relinquished$4.7 $— 

$17.4 $— 
Stock repurchases:
Aggregate purchase price(1)
$157.0 $29.0 $457.0 $253.8 
Shares repurchased (in millions)0.8 0.2 2.3 1.5 
 
New Vehicle Floorplan Assistance and ExpenseThree Months Ended June 30,Six Months Ended June 30,
 20262025Variance20262025Variance
Floorplan assistance earned (included in cost of sales)$33.9 $34.7 $(0.8)$64.3 $65.8 $(1.5)
New vehicle floorplan interest expense(42.0)(43.6)1.6 (82.0)(87.6)5.6 
Net new vehicle inventory carrying expense$(8.1)$(8.9)$0.8 $(17.7)$(21.8)$4.1 
 
Balance Sheet and Other HighlightsJune 30, 2026December 31, 2025June 30, 2025
Cash and cash equivalents$53.3 $58.6 $62.9 
Inventory$3,738.1 $3,404.9 $3,445.6 
Floorplan notes payable$4,058.9 $3,828.3 $3,655.9 
Auto loans receivable, net
$2,589.1 $2,140.2 $1,702.4 
Non-recourse debt$2,417.2 $1,944.6 $1,464.6 
Non-vehicle debt$4,427.3 $3,979.5 $3,764.6 
Equity$2,259.1 $2,341.1 $2,469.5 
New days supply (industry standard of selling days)53 days 45 days49 days
Used days supply (trailing calendar month days)38 days38 days39 days
Key Credit Agreement Covenant Compliance Calculations (2)
  
Leverage ratio2.77x
Covenantless than or equal to3.75x
 
Interest coverage ratio4.67x
Covenantgreater than or equal to3.00x
 
(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 June 30, 2023.



AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data) 
Comparable Basis Reconciliations(1)
Three Months Ended June 30,
Operating IncomeIncome Before
Income Taxes
Income Tax Provision(2)
Effective Tax RateNet Income
Diluted Earnings
Per Share(3)
202620252026202520262025202620252026202520262025
As reported$319.0 $217.6 $243.8 $138.4 $61.7 $52.0 25.3 %37.6 %$182.1 $86.4 $5.39 $2.26 
Increase in compensation expense related to market valuation changes in deferred compensation obligations(4)
16.8 10.4 — — — — — — $— $— 
Goodwill, franchise rights, and other asset impairments(5)
— 141.3 — 141.3 — 18.5 — 122.8 $— $3.21 
Items related to property and store divestitures:
Asset impairments, net of gains on sales3.2 — 3.2 — 0.8 — 2.4 — $0.07 $— 
Loss from operations of terminated stores4.1 — 4.3 — 1.0 — 3.3 — $0.10 $— 
Adjusted$343.1 $369.3 $251.3 $279.7 $63.5 $70.5 25.3 %25.2 %$187.8 $209.2 $5.56 $5.46 
Three Months Ended June 30,
SG&ASG&A as a Percentage of Gross Profit (%)
2026202520262025
As reported$856.3 $854.7 69.6 67.0 
Excluding:
Increase in compensation expense related to market valuation changes in deferred compensation obligations
16.8 10.4 
Adjusted$839.5 $844.3 68.2 66.2 
(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)
Primarily comprised of franchise rights impairment of $71.7 million, goodwill impairment of $65.3 million, and other intangible asset impairments of $4.3 million.


AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations(1)
Six Months Ended June 30,
Operating IncomeIncome Before
Income Taxes
Income Tax Provision(2)
Effective Tax RateNet Income
Diluted Earnings
Per Share(3)
202620252026202520262025202620252026202520262025
As reported$633.3 $553.6 $519.5 $372.4 $132.0 $110.5 25.4 %29.7 %$387.5 $261.9 $11.26 $6.73 
Increase in compensation expense related to market valuation changes in deferred compensation obligations(4)
14.2 8.8 — — — — — — $— $— 
Goodwill, franchise rights, and other asset impairments(5)
— 141.3 — 141.3 — 18.5 — 122.8 $— $3.16 
Net (gain) loss on equity investments— — (54.0)11.5 (13.2)2.8 (40.8)8.7 $(1.19)$0.22 
Items related to property and store divestitures:
Asset impairments, net of gains on sales
3.2 — 3.2 — 0.8 — 2.4 — $0.07 $— 
Loss from operations of terminated stores4.1 — 4.3 — 1.0 — 3.3 — $0.10 $— 
Adjusted$654.8 $703.7 $473.0 $525.2 $120.6 $131.8 25.5 %25.1 %$352.4 $393.4 $10.24 $10.11 
Six Months Ended June 30,
SG&A
SG&A as a Percentage of Gross Profit (%)
2026202520262025
As reported$1,698.5 $1,676.6 69.5 67.2 
Excluding:
Increase in compensation expense related to market valuation changes in deferred compensation obligations
14.2 8.8 
Adjusted$1,684.3 $1,667.8 69.0 66.8 
(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)
Primarily comprised of franchise rights impairment of $71.7 million, goodwill impairment of $65.3 million, and other intangible asset impairments of $4.3 million.




Free Cash FlowSix Months Ended June 30,
 20262025
Net cash provided by (used in) operating activities $(48.9)$(230.3)
Net proceeds from vehicle floorplan - non-trade120.5 83.1 
Increase in auto loans receivable, net493.6 695.0 
Adjusted cash provided by operating activities 565.2 547.8 
Purchases of property and equipment (126.0)(154.2)
Adjusted free cash flow $439.2 $393.6 
Adjusted net income$352.4 $393.4 
Adjusted free cash flow conversion %125100


AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
 
Operating HighlightsThree Months Ended June 30,Six Months Ended June 30,
 20262025$ Variance% Variance20262025$ Variance% Variance
Revenue:
New vehicle$3,246.3 $3,381.6 $(135.3)(4.0)$6,191.9 $6,614.1 $(422.2)(6.4)
Retail used vehicle1,814.7 1,827.2 (12.5)(0.7)3,581.2 3,598.8 (17.6)(0.5)
Wholesale158.8 138.6 20.2 14.6 298.8 267.2 31.6 11.8 
Used vehicle1,973.5 1,965.8 7.7 0.4 3,880.0 3,866.0 14.0 0.4 
Finance and insurance, net351.6 365.4 (13.8)(3.8)695.0 715.1 (20.1)(2.8)
Total variable operations5,571.4 5,712.8 (141.4)(2.5)10,766.9 11,195.2 (428.3)(3.8)
Parts and service1,239.9 1,206.5 33.4 2.8 2,430.2 2,354.6 75.6 3.2 
Other5.2 4.2 1.0 9.6 7.6 2.0 
Total revenue$6,816.5 $6,923.5 $(107.0)(1.5)$13,206.7 $13,557.4 $(350.7)(2.6)
Gross profit:
New vehicle$147.3 $182.9 $(35.6)(19.5)$288.6 $357.3 $(68.7)(19.2)
Retail used vehicle100.7 111.9 (11.2)(10.0)203.8 224.0 (20.2)(9.0)
Wholesale13.3 12.6 0.7 29.8 24.3 5.5 
Used vehicle114.0 124.5 (10.5)(8.4)233.6 248.3 (14.7)(5.9)
Finance and insurance351.6 365.4 (13.8)(3.8)695.0 715.1 (20.1)(2.8)
Total variable operations612.9 672.8 (59.9)(8.9)1,217.2 1,320.7 (103.5)(7.8)
Parts and service594.0 593.5 0.5 0.1 1,170.6 1,155.4 15.2 1.3 
Other0.7 0.2 0.5 0.6 0.8 (0.2)
Total gross profit$1,207.6 $1,266.5 $(58.9)(4.7)$2,388.4 $2,476.9 $(88.5)(3.6)
Retail vehicle unit sales:
New62,435 65,533 (3,098)(4.7)118,682 127,598 (8,916)(7.0)
Used63,428 68,917 (5,489)(8.0)127,312 135,982 (8,670)(6.4)
125,863 134,450 (8,587)(6.4)245,994 263,580 (17,586)(6.7)
Revenue per vehicle retailed:
New$51,995 $51,601 $394 0.8 $52,172 $51,835 $337 0.7 
Used$28,610 $26,513 $2,097 7.9 $28,129 $26,465 $1,664 6.3 
Gross profit per vehicle retailed:
New$2,359 $2,791 $(432)(15.5)$2,432 $2,800 $(368)(13.1)
Used$1,588 $1,624 $(36)(2.2)$1,601 $1,647 $(46)(2.8)
Finance and insurance$2,794 $2,718 $76 2.8 $2,825 $2,713 $112 4.1 
Total variable operations(1)
$4,764 $4,910 $(146)(3.0)$4,827 $4,918 $(91)(1.9)
(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 PercentagesThree Months Ended June 30,Six Months Ended June 30,
 2026 (%)2025 (%)2026 (%)2025 (%)
Revenue mix percentages:
New vehicle47.6 48.8 46.9 48.8 
Used vehicle29.0 28.4 29.4 28.5 
Parts and service18.2 17.4 18.4 17.4 
Finance and insurance, net5.2 5.3 5.3 5.3 
Other— 0.1 — — 
100.0 100.0 100.0 100.0 
Gross profit mix percentages:
New vehicle12.2 14.4 12.1 14.4 
Used vehicle9.4 9.8 9.8 10.0 
Parts and service49.2 46.9 49.0 46.6 
Finance and insurance29.1 28.9 29.1 28.9 
Other0.1 — — 0.1 
100.0 100.0 100.0 100.0 
Operating items as a percentage of revenue:
Gross profit:
New vehicle4.5 5.4 4.7 5.4 
Used vehicle - retail5.5 6.1 5.7 6.2 
Parts and service47.9 49.2 48.2 49.1 
Total17.7 18.3 18.1 18.3 


Source: View Original Filing on SEC EDGAR

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