AutoNation Q3 2026 net income falls 25% to $162M
AutoNation increased revolving and commercial paper capacities to $2.0 billion and extended its credit agreement maturity to September 14, 2031.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
AutoNation (AN) reported third-quarter 2026 revenue of $7,010.3 million, down 0.4% from a year earlier. Net income was $162.3 million, versus $215.1 million, and diluted EPS was $4.87, versus $5.65. Adjusted diluted EPS, a non-GAAP measure, was $5.11 compared with $5.01. Parts and service revenue increased 5.2% to $1,290.0 million; the company reported record After-Sales gross profit.
For the first nine months of 2026, net income rose 15% to $549.8 million and diluted EPS rose 30% to $16.12, while revenue declined 1% to $20,492.2 million. Adjusted free cash flow was $739.0 million, or 141% of adjusted net income, compared with $785.7 million and 128% a year earlier. AutoNation Finance's portfolio grew more than 40% year over year, and income was $15.4 million versus $1.5 million. AutoNation repurchased 3.1 million shares for $619.9 million during the period, and its board authorized up to an additional $1.0 billion in repurchases in October. Liquidity was $1.5 billion as of September 30, 2026.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointYear-to-date diluted EPS rose 30% to $16.12.
- Moderate pointYear-to-date net income rose 15% to $549.8 million.
Negative
- Moderate pointThird-quarter net income fell 25% to $162.3 million.
Filing Explained
AutoNation says year-to-date repurchases reduced shares outstanding by 9%; through
8-K Event Classification
2 items: 2.02, 9.01
2 items
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, or exhibit attachments filed with this report.
Key Figures
Third-quarter revenue: $7,010.3 million
Third-quarter net income: $162.3 million
Third-quarter diluted EPS: $4.87
+5 more
8 metrics
Third-quarter revenue
$7,010.3 million
Three months ended September 30, 2026; down 0.4% year over year
Third-quarter net income
$162.3 million
Three months ended September 30, 2026; compared with $215.1 million in 2025
Third-quarter diluted EPS
$4.87
Three months ended September 30, 2026; compared with $5.65 in 2025
Adjusted diluted EPS
$5.11
Three months ended September 30, 2026; compared with $5.01 in 2025
Nine-month net income
$549.8 million
Nine months ended September 30, 2026; up 15% year over year
Nine-month diluted EPS
$16.12
Nine months ended September 30, 2026; up 30% year over year
Nine-month share repurchases
3.1 million shares; $619.9 million aggregate purchase price
First nine months of 2026
Additional repurchase authorization
Up to $1.0 billion
Authorized by the board in October 2026
Key Terms
Adjusted diluted EPS, Adjusted free cash flow conversion, Covenant leverage ratio, Floorplan interest expense
4 terms
Adjusted diluted EPS financial
"Adjusted Diluted EPS"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
Adjusted free cash flow conversion financial
"Adjusted free cash flow conversion %"
Adjusted free cash flow conversion measures how effectively a company turns its reported profit into available cash after accounting for necessary expenses and adjustments. It shows the percentage of profit that becomes actual cash the company can use for growth, debt repayment, or returning value to shareholders. This metric helps investors understand the quality and sustainability of a company's earnings.
Covenant leverage ratio financial
"covenant leverage ratio was 2.7X 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.
Floorplan interest expense financial
"Floorplan interest expense"
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.
Earnings Snapshot
Revenue: $7,010.3 million
Third quarter 2026
Revenue
$7,010.3 million
Down 0.4% year over year
Net income
$162.3 million
Down 25% year over year
Diluted EPS
$4.87
Down 14% year over year
Adjusted diluted EPS
$5.11
Up 2% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AutoNation (AN)'s Q3 2026 revenue and earnings?
AutoNation reported revenue of $7,010.3 million for the third quarter ended September 30, 2026. Net income was $162.3 million and diluted EPS was $4.87, compared with $215.1 million and $5.65, respectively, in the year-ago quarter. Adjusted diluted EPS was $5.11 versus $5.01.
How much did AutoNation (AN) repurchase through October 28, 2026?
Year to date through October 28, 2026, AutoNation repurchased 3.4 million shares for an aggregate purchase price of $668 million, or $194.99 per share. As of that date, $1.4 billion remained available for repurchases under the program.
What changed in AutoNation's credit and commercial paper capacity?
In September 2026, AutoNation amended its unsecured Credit Agreement, increasing revolving borrowing capacity to $2.0 billion and extending the maturity date to September 14, 2031. In October, it increased its commercial paper program capacity to $2.0 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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) October 30, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
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 2.02 | Results of Operations and Financial Condition. | ||||
On October 30, 2026, AutoNation, Inc. (the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended September 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 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
99.1 Press Release of AutoNation, Inc. dated October 30, 2026, regarding results of operations for the fiscal quarter ended September 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: | October 30, 2026 | By: | /s/ C. Coleman Edmunds | ||||||||||||||
| C. Coleman Edmunds | |||||||||||||||||
| Executive Vice President, General Counsel and Corporate Secretary | |||||||||||||||||
Exhibit 99.1
 | Investor Contact: Derek Fiebig (954) 769-2227 fiebigd@autonation.com Media Contact: Lisa Rhodes Ryans (954) 769-4120 publicrelations@autonation.com | |||||||||||||
AutoNation Reports Third Quarter 2026 Results
•Q3 2026 EPS $4.87 and Adjusted EPS $5.11, seventh consecutive quarter of YoY growth
•Strong cash flow generation and cash conversion
•Share repurchases of $620 million year-to-date, 9% reduction of shares outstanding
•Additional $1 billion of share repurchase authorization approved
•Record After-Sales gross profit; Customer Pay growth 6%
•AN Finance portfolio growth of more than 40% YoY, profit up 10X YoY
FORT LAUDERDALE, Fla., (October 30, 2026) — AutoNation, Inc. (NYSE: AN) today reported third quarter 2026 revenue of $7.0 billion, relatively flat compared to the same period a year ago. Third quarter 2026 EPS was $4.87, compared to $5.65 a year ago, and third quarter 2026 Adjusted EPS was $5.11, compared to $5.01 a year ago. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
“Our team delivered another solid quarter, growing adjusted EPS for the seventh consecutive quarter,” said Mike Manley, Chief Executive Officer of AutoNation. “Record After-Sales performance and strong growth in AutoNation Finance further increased the contribution of recurring earnings and cash flow, leading to exceptional cash generation and disciplined capital allocation. We utilized nearly 85 percent of our adjusted free cash flow for share repurchases, reducing shares outstanding by 9 percent year-to-date. The current environment strongly favors allocating capital toward share repurchases and as such we have secured Board authorization for an additional $1 billion in share repurchases,” Manley concluded.
Operational Summary
Third quarter 2026 compared to the year-ago period:
| Selected GAAP Financial Data | ||||||||||||||||||||
(In millions, except per share data and unit sales) | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | YoY | ||||||||||||||||||
| Revenue | $ | 7,010.3 | $ | 7,037.4 | —% | |||||||||||||||
| Gross Profit | $ | 1,207.6 | $ | 1,238.4 | -2% | |||||||||||||||
| Operating Income | $ | 314.6 | $ | 372.4 | -16% | |||||||||||||||
| Net Income | $ | 162.3 | $ | 215.1 | -25% | |||||||||||||||
| Diluted EPS | $ | 4.87 | $ | 5.65 | -14% | |||||||||||||||
Diluted weighted average common shares outstanding | 33.3 | 38.1 | -13% | |||||||||||||||||
| Same-store Revenue | $ | 6,805.1 | $ | 6,972.5 | -2% | |||||||||||||||
| Same-store Gross Profit | $ | 1,169.8 | $ | 1,227.8 | -5% | |||||||||||||||
| Same-store New Vehicle Retail Unit Sales | 62,356 | 65,836 | -5% | |||||||||||||||||
| Same-store Used Vehicle Retail Unit Sales | 63,703 | 67,988 | -6% | |||||||||||||||||
| Selected Non-GAAP Financial Data* | ||||||||||||||||||||
| ($ in millions, except per share data) | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | YoY | ||||||||||||||||||
| Adjusted Operating Income | $ | 322.7 | $ | 348.1 | -7% | |||||||||||||||
| Adjusted Net Income | $ | 170.3 | $ | 190.9 | -11% | |||||||||||||||
| Adjusted Diluted EPS | $ | 5.11 | $ | 5.01 | 2% | |||||||||||||||
*Reconciliations of non-GAAP financial measures are included in the attached financial tables. 2026 Adjusted Diluted EPS primarily excludes self-insurance losses associated with weather-related events of $6.6 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) | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | YoY | ||||||||||||||||||
| Revenue | $ | 20,492.2 | $ | 20,702.2 | -1% | |||||||||||||||
| Gross Profit | $ | 3,649.8 | $ | 3,733.7 | -2% | |||||||||||||||
| Operating Income | $ | 947.9 | $ | 926.0 | 2% | |||||||||||||||
| Net Income | $ | 549.8 | $ | 477.0 | 15% | |||||||||||||||
| Diluted EPS | $ | 16.12 | $ | 12.36 | 30% | |||||||||||||||
Diluted weighted average common shares outstanding | 34.1 | 38.6 | -12% | |||||||||||||||||
| Same-store Revenue | $ | 19,976.7 | $ | 20,494.8 | -3% | |||||||||||||||
| Same-store Gross Profit | $ | 3,553.5 | $ | 3,699.6 | -4% | |||||||||||||||
| Same-store New Vehicle Retail Unit Sales | 180,804 | 193,178 | -6% | |||||||||||||||||
| Same-store Used Vehicle Retail Unit Sales | 190,674 | 203,654 | -6% | |||||||||||||||||
| Selected Non-GAAP Financial Data* | ||||||||||||||||||||
| ($ in millions, except per share data) | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | YoY | ||||||||||||||||||
| Adjusted Operating Income | $ | 977.5 | $ | 1,051.8 | -7% | |||||||||||||||
| Adjusted Net Income | $ | 522.7 | $ | 584.3 | -11% | |||||||||||||||
| Adjusted Diluted EPS | $ | 15.33 | $ | 15.14 | 1% | |||||||||||||||
*Reconciliations of non-GAAP financial measures are included in the attached financial tables.
Capital Allocation, Liquidity, and Leverage
For the first nine months ended September 30, 2026, cash used in operating activities was $160.4 million, auto loans receivable, net, increased $708.4 million, capital expenditures were $201.7 million, and adjusted free cash flow was $739.0 million, or 141% of adjusted net income.
During the first nine months of 2026, AutoNation repurchased 3.1 million shares for an aggregate purchase price of $620 million or $198.68 per share. Year-to-date through October 28, 2026, AutoNation repurchased 3.4 million shares for an aggregate purchase price of $668 million or $194.99 per share. In October 2026, AutoNation’s Board of Directors authorized the repurchase of up to an additional $1.0 billion of common stock under its share repurchase program. As of October 28, 2026, $1.4 billion remained available for share repurchases under the program.
As of September 30, 2026, AutoNation had $1.5 billion of liquidity, including $51 million in cash and $1.4 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company’s covenant leverage ratio was 2.7X at quarter-end, and the Company had $4.3 billion of non-vehicle debt outstanding.
In September 2026, AutoNation amended its unsecured Credit Agreement, increasing the revolving borrowing capacity to $2.0 billion and extending the maturity date to September 14, 2031, among other things. In October 2026, the Company increased its commercial paper program capacity to $2.0 billion, matching the capacity under its revolving credit facility.
The third quarter conference call may be accessed by telephone at 833-461-5787 (Conference ID: 561396341) 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| New vehicle | $ | 3,330.4 | $ | 3,415.6 | $ | 9,634.1 | $ | 10,060.0 | |||||||||||||||
| Used vehicle | 2,035.8 | 2,015.7 | 6,011.0 | 5,923.1 | |||||||||||||||||||
| Parts and service | 1,290.0 | 1,226.2 | 3,773.9 | 3,611.3 | |||||||||||||||||||
| Finance and insurance, net | 349.0 | 374.8 | 1,058.6 | 1,095.0 | |||||||||||||||||||
| Other | 5.1 | 5.1 | 14.6 | 12.8 | |||||||||||||||||||
| Total revenue | 7,010.3 | 7,037.4 | 20,492.2 | 20,702.2 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| New vehicle | 3,191.3 | 3,264.6 | 9,199.9 | 9,550.7 | |||||||||||||||||||
| Used vehicle | 1,931.7 | 1,900.8 | 5,670.4 | 5,558.3 | |||||||||||||||||||
| Parts and service | 673.4 | 629.2 | 1,956.8 | 1,848.0 | |||||||||||||||||||
| Other | 6.3 | 4.4 | 15.3 | 11.5 | |||||||||||||||||||
| Total cost of sales | 5,802.7 | 5,799.0 | 16,842.4 | 16,968.5 | |||||||||||||||||||
| Gross profit | 1,207.6 | 1,238.4 | 3,649.8 | 3,733.7 | |||||||||||||||||||
AutoNation Finance income | 15.4 | 1.5 | 35.5 | 3.6 | |||||||||||||||||||
| Selling, general, and administrative expenses | 849.1 | 850.1 | 2,547.6 | 2,526.7 | |||||||||||||||||||
| Depreciation and amortization | 63.8 | 64.2 | 190.3 | 189.9 | |||||||||||||||||||
| Goodwill impairment | — | — | — | 65.3 | |||||||||||||||||||
| Franchise rights impairment | — | — | — | 71.7 | |||||||||||||||||||
Other income, net(1) | (4.5) | (46.8) | (0.5) | (42.3) | |||||||||||||||||||
| Operating income | 314.6 | 372.4 | 947.9 | 926.0 | |||||||||||||||||||
| Non-operating income (expense) items: | |||||||||||||||||||||||
| Floorplan interest expense | (45.4) | (47.5) | (130.9) | (139.3) | |||||||||||||||||||
| Other interest expense | (51.7) | (45.1) | (149.6) | (133.6) | |||||||||||||||||||
Other income (loss), net(2) | (2.0) | 7.8 | 67.6 | 6.9 | |||||||||||||||||||
| Income before income taxes | 215.5 | 287.6 | 735.0 | 660.0 | |||||||||||||||||||
| Income tax provision | 53.2 | 72.5 | 185.2 | 183.0 | |||||||||||||||||||
| Net income | $ | 162.3 | $ | 215.1 | $ | 549.8 | $ | 477.0 | |||||||||||||||
Diluted earnings per share | $ | 4.87 | $ | 5.65 | $ | 16.12 | $ | 12.36 | |||||||||||||||
Diluted weighted average common shares outstanding | 33.3 | 38.1 | 34.1 | 38.6 | |||||||||||||||||||
| Common shares outstanding, net of treasury stock, at period end | 32.3 | 36.9 | 32.3 | 36.9 | |||||||||||||||||||
(1)Includes net gains on business/property divestitures and asset impairments. Prior periods also include cybersecurity insurance recoveries received in connection with the CDK outage.
(2)Includes net gains and losses on minority equity investments, as well as net gains and losses 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 Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ Variance | % Variance | 2026 | 2025 | $ Variance | % Variance | |||||||||||||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle | $ | 3,330.4 | $ | 3,415.6 | $ | (85.2) | (2.5) | $ | 9,634.1 | $ | 10,060.0 | $ | (425.9) | (4.2) | ||||||||||||||||||||||||||||||||||||
| Retail used vehicle | 1,883.3 | 1,874.3 | 9.0 | 0.5 | 5,553.0 | 5,511.4 | 41.6 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 152.5 | 141.4 | 11.1 | 7.9 | 458.0 | 411.7 | 46.3 | 11.2 | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle | 2,035.8 | 2,015.7 | 20.1 | 1.0 | 6,011.0 | 5,923.1 | 87.9 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||
| Finance and insurance, net | 349.0 | 374.8 | (25.8) | (6.9) | 1,058.6 | 1,095.0 | (36.4) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
| Total variable operations | 5,715.2 | 5,806.1 | (90.9) | (1.6) | 16,703.7 | 17,078.1 | (374.4) | (2.2) | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service | 1,290.0 | 1,226.2 | 63.8 | 5.2 | 3,773.9 | 3,611.3 | 162.6 | 4.5 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 5.1 | 5.1 | — | 14.6 | 12.8 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 7,010.3 | $ | 7,037.4 | $ | (27.1) | (0.4) | $ | 20,492.2 | $ | 20,702.2 | $ | (210.0) | (1.0) | ||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle | $ | 139.1 | $ | 151.0 | $ | (11.9) | (7.9) | $ | 434.2 | $ | 509.3 | $ | (75.1) | (14.7) | ||||||||||||||||||||||||||||||||||||
| Retail used vehicle | 99.7 | 102.6 | (2.9) | (2.8) | 306.7 | 328.7 | (22.0) | (6.7) | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 4.4 | 12.3 | (7.9) | 33.9 | 36.1 | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle | 104.1 | 114.9 | (10.8) | (9.4) | 340.6 | 364.8 | (24.2) | (6.6) | ||||||||||||||||||||||||||||||||||||||||||
| Finance and insurance | 349.0 | 374.8 | (25.8) | (6.9) | 1,058.6 | 1,095.0 | (36.4) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
| Total variable operations | 592.2 | 640.7 | (48.5) | (7.6) | 1,833.4 | 1,969.1 | (135.7) | (6.9) | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service | 616.6 | 597.0 | 19.6 | 3.3 | 1,817.1 | 1,763.3 | 53.8 | 3.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other | (1.2) | 0.7 | (1.9) | (0.7) | 1.3 | (2.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | 1,207.6 | 1,238.4 | (30.8) | (2.5) | 3,649.8 | 3,733.7 | (83.9) | (2.2) | ||||||||||||||||||||||||||||||||||||||||||
AutoNation Finance income | 15.4 | 1.5 | 13.9 | 35.5 | 3.6 | 31.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | 849.1 | 850.1 | 1.0 | 0.1 | 2,547.6 | 2,526.7 | (20.9) | (0.8) | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 63.8 | 64.2 | 0.4 | 190.3 | 189.9 | (0.4) | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 65.3 | 65.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Franchise rights impairment | — | — | — | — | 71.7 | 71.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Other income, net | (4.5) | (46.8) | (42.3) | (0.5) | (42.3) | (41.8) | ||||||||||||||||||||||||||||||||||||||||||||
| Operating income | 314.6 | 372.4 | (57.8) | (15.5) | 947.9 | 926.0 | 21.9 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||
| Non-operating income (expense) items: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Floorplan interest expense | (45.4) | (47.5) | 2.1 | (130.9) | (139.3) | 8.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Other interest expense | (51.7) | (45.1) | (6.6) | (149.6) | (133.6) | (16.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Other income (loss), net | (2.0) | 7.8 | (9.8) | 67.6 | 6.9 | 60.7 | ||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 215.5 | $ | 287.6 | $ | (72.1) | (25.1) | $ | 735.0 | $ | 660.0 | $ | 75.0 | 11.4 | ||||||||||||||||||||||||||||||||||||
| Retail vehicle unit sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | 63,929 | 66,189 | (2,260) | (3.4) | 184,651 | 194,423 | (9,772) | (5.0) | ||||||||||||||||||||||||||||||||||||||||||
| Used | 65,410 | 68,896 | (3,486) | (5.1) | 195,749 | 206,632 | (10,883) | (5.3) | ||||||||||||||||||||||||||||||||||||||||||
| 129,339 | 135,085 | (5,746) | (4.3) | 380,400 | 401,055 | (20,655) | (5.2) | |||||||||||||||||||||||||||||||||||||||||||
| Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | $ | 52,095 | $ | 51,604 | $ | 491 | 1.0 | $ | 52,175 | $ | 51,743 | $ | 432 | 0.8 | ||||||||||||||||||||||||||||||||||||
| Used | $ | 28,792 | $ | 27,205 | $ | 1,587 | 5.8 | $ | 28,368 | $ | 26,673 | $ | 1,695 | 6.4 | ||||||||||||||||||||||||||||||||||||
| Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | $ | 2,176 | $ | 2,281 | $ | (105) | (4.6) | $ | 2,351 | $ | 2,620 | $ | (269) | (10.3) | ||||||||||||||||||||||||||||||||||||
| Used | $ | 1,524 | $ | 1,489 | $ | 35 | 2.4 | $ | 1,567 | $ | 1,591 | $ | (24) | (1.5) | ||||||||||||||||||||||||||||||||||||
| Finance and insurance | $ | 2,698 | $ | 2,775 | $ | (77) | (2.8) | $ | 2,783 | $ | 2,730 | $ | 53 | 1.9 | ||||||||||||||||||||||||||||||||||||
Total variable operations(1) | $ | 4,545 | $ | 4,652 | $ | (107) | (2.3) | $ | 4,731 | $ | 4,820 | $ | (89) | (1.8) | ||||||||||||||||||||||||||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 (%) | 2025 (%) | 2026 (%) | 2025 (%) | |||||||||||||||||||||||
| Revenue mix percentages: | ||||||||||||||||||||||||||
| New vehicle | 47.5 | 48.5 | 47.0 | 48.6 | ||||||||||||||||||||||
| Used vehicle | 29.0 | 28.6 | 29.3 | 28.6 | ||||||||||||||||||||||
| Parts and service | 18.4 | 17.4 | 18.4 | 17.4 | ||||||||||||||||||||||
| Finance and insurance, net | 5.0 | 5.3 | 5.2 | 5.3 | ||||||||||||||||||||||
| Other | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||||||||||||||||
| 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||
| Gross profit mix percentages: | ||||||||||||||||||||||||||
| New vehicle | 11.5 | 12.2 | 11.9 | 13.6 | ||||||||||||||||||||||
| Used vehicle | 8.6 | 9.3 | 9.3 | 9.8 | ||||||||||||||||||||||
| Parts and service | 51.1 | 48.2 | 49.8 | 47.2 | ||||||||||||||||||||||
| Finance and insurance | 28.9 | 30.3 | 29.0 | 29.3 | ||||||||||||||||||||||
| Other | (0.1) | — | — | 0.1 | ||||||||||||||||||||||
| 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||
| Operating items as a percentage of revenue: | ||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||
| New vehicle | 4.2 | 4.4 | 4.5 | 5.1 | ||||||||||||||||||||||
| Used vehicle - retail | 5.3 | 5.5 | 5.5 | 6.0 | ||||||||||||||||||||||
| Parts and service | 47.8 | 48.7 | 48.1 | 48.8 | ||||||||||||||||||||||
| Total | 17.2 | 17.6 | 17.8 | 18.0 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 12.1 | 12.1 | 12.4 | 12.2 | ||||||||||||||||||||||
| Operating income | 4.5 | 5.3 | 4.6 | 4.5 | ||||||||||||||||||||||
| Operating items as a percentage of total gross profit: | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | 70.3 | 68.6 | 69.8 | 67.7 | ||||||||||||||||||||||
| Operating income | 26.1 | 30.1 | 26.0 | 24.8 | ||||||||||||||||||||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA
($ in millions)
| Segment Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ Variance | % Variance | 2026 | 2025 | $ Variance | % Variance | |||||||||||||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | $ | 1,807.2 | $ | 1,945.3 | $ | (138.1) | (7.1) | $ | 5,316.9 | $ | 5,583.2 | $ | (266.3) | (4.8) | ||||||||||||||||||||||||||||||||||||
| Import | 2,252.2 | 2,173.1 | 79.1 | 3.6 | 6,533.4 | 6,368.7 | 164.7 | 2.6 | ||||||||||||||||||||||||||||||||||||||||||
| Premium luxury | 2,630.3 | 2,559.4 | 70.9 | 2.8 | 7,651.5 | 7,691.7 | (40.2) | (0.5) | ||||||||||||||||||||||||||||||||||||||||||
Total Franchised Dealerships | 6,689.7 | 6,677.8 | 11.9 | 0.2 | 19,501.8 | 19,643.6 | (141.8) | (0.7) | ||||||||||||||||||||||||||||||||||||||||||
| Corporate and other | 320.6 | 359.6 | (39.0) | (10.8) | 990.4 | 1,058.6 | (68.2) | (6.4) | ||||||||||||||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 7,010.3 | $ | 7,037.4 | $ | (27.1) | (0.4) | $ | 20,492.2 | $ | 20,702.2 | $ | (210.0) | (1.0) | ||||||||||||||||||||||||||||||||||||
Segment income(1): | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | $ | 65.5 | $ | 81.3 | $ | (15.8) | (19.4) | $ | 217.6 | $ | 242.3 | $ | (24.7) | (10.2) | ||||||||||||||||||||||||||||||||||||
| Import | 115.3 | 123.7 | (8.4) | (6.8) | 352.6 | 383.3 | (30.7) | (8.0) | ||||||||||||||||||||||||||||||||||||||||||
| Premium luxury | 150.6 | 160.9 | (10.3) | (6.4) | 462.3 | 519.7 | (57.4) | (11.0) | ||||||||||||||||||||||||||||||||||||||||||
Total Franchised Dealerships | 331.4 | 365.9 | (34.5) | (9.4) | 1,032.5 | 1,145.3 | (112.8) | (9.8) | ||||||||||||||||||||||||||||||||||||||||||
| AutoNation Finance income | 15.4 | 1.5 | 13.9 | 35.5 | 3.6 | 31.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate and other | (77.6) | (42.5) | (35.1) | (251.0) | (362.2) | 111.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Add: Floorplan interest expense | 45.4 | 47.5 | (2.1) | 130.9 | 139.3 | (8.4) | ||||||||||||||||||||||||||||||||||||||||||||
| Operating income | $ | 314.6 | $ | 372.4 | $ | (57.8) | (15.5) | $ | 947.9 | $ | 926.0 | $ | 21.9 | 2.4 | ||||||||||||||||||||||||||||||||||||
(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: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | 17,196 | 19,610 | (2,414) | (12.3) | 50,134 | 55,742 | (5,608) | (10.1) | ||||||||||||||||||||||||||||||||||||||||||
| Import | 30,009 | 29,974 | 35 | 0.1 | 86,848 | 87,725 | (877) | (1.0) | ||||||||||||||||||||||||||||||||||||||||||
| Premium luxury | 16,724 | 16,605 | 119 | 0.7 | 47,669 | 50,956 | (3,287) | (6.5) | ||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicle unit sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | 17,600 | 19,440 | (1,840) | (9.5) | 52,822 | 57,616 | (4,794) | (8.3) | ||||||||||||||||||||||||||||||||||||||||||
| Import | 23,391 | 23,368 | 23 | 0.1 | 69,380 | 69,915 | (535) | (0.8) | ||||||||||||||||||||||||||||||||||||||||||
| Premium luxury | 18,422 | 18,638 | (216) | (1.2) | 54,809 | 56,671 | (1,862) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
| Brand Mix - Retail New Vehicle Units Sold | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 (%) | 2025 (%) | 2026 (%) | 2025 (%) | |||||||||||||||||||||||||||||||||||||||||||||||
| Domestic: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Ford, Lincoln | 12.1 | 13.0 | 12.0 | 12.4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Chevrolet, Buick, Cadillac, GMC | 9.7 | 11.1 | 10.0 | 11.0 | ||||||||||||||||||||||||||||||||||||||||||||||
| Chrysler, Dodge, Jeep, Ram | 5.1 | 5.5 | 5.2 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||||||
| Domestic total | 26.9 | 29.6 | 27.2 | 28.7 | ||||||||||||||||||||||||||||||||||||||||||||||
| Import: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Toyota | 23.3 | 21.9 | 23.2 | 21.2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Honda | 12.3 | 11.9 | 12.5 | 12.5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Hyundai | 3.7 | 3.7 | 3.5 | 3.6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Subaru | 3.9 | 3.4 | 3.8 | 3.6 | ||||||||||||||||||||||||||||||||||||||||||||||
| Other Import | 3.7 | 4.4 | 4.0 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Import total | 46.9 | 45.3 | 47.0 | 45.1 | ||||||||||||||||||||||||||||||||||||||||||||||
| Premium Luxury: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Mercedes-Benz | 8.9 | 8.2 | 8.9 | 8.8 | ||||||||||||||||||||||||||||||||||||||||||||||
| BMW | 8.6 | 8.6 | 8.6 | 8.7 | ||||||||||||||||||||||||||||||||||||||||||||||
| Lexus | 3.2 | 3.2 | 3.2 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||||
| Audi | 2.1 | 2.0 | 1.9 | 1.9 | ||||||||||||||||||||||||||||||||||||||||||||||
| Jaguar Land Rover | 1.9 | 1.7 | 1.9 | 1.9 | ||||||||||||||||||||||||||||||||||||||||||||||
| Other Premium Luxury | 1.5 | 1.4 | 1.3 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Premium Luxury total | 26.2 | 25.1 | 25.8 | 26.2 | ||||||||||||||||||||||||||||||||||||||||||||||
| 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||
| AutoNation Finance | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ Variance | 2026 | 2025 | $ Variance | |||||||||||||||||||||||||||||||||
| Interest margin: | ||||||||||||||||||||||||||||||||||||||
| Interest and fee income | $ | 74.2 | $ | 55.2 | $ | 19.0 | $ | 205.5 | $ | 145.7 | $ | 59.8 | ||||||||||||||||||||||||||
| Interest expense | (30.3) | (21.2) | (9.1) | (81.8) | (52.9) | (28.9) | ||||||||||||||||||||||||||||||||
| Total interest margin | 43.9 | 34.0 | 9.9 | 123.7 | 92.8 | 30.9 | ||||||||||||||||||||||||||||||||
| Provision for credit losses | (17.2) | (22.0) | 4.8 | (56.8) | (60.1) | 3.3 | ||||||||||||||||||||||||||||||||
| Total interest margin after provision for loan losses | 26.7 | 12.0 | 14.7 | 66.9 | 32.7 | 34.2 | ||||||||||||||||||||||||||||||||
Direct expenses(1) | (11.3) | (10.5) | (0.8) | (31.4) | (29.1) | (2.3) | ||||||||||||||||||||||||||||||||
| AutoNation Finance income | $ | 15.4 | $ | 1.5 | $ | 13.9 | $ | 35.5 | $ | 3.6 | $ | 31.9 | ||||||||||||||||||||||||||
(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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Capital expenditures | $ | 75.7 | $ | 68.9 | $ | 201.7 | $ | 223.1 | ||||||||||||||||||
| Cash paid for acquisitions, net of cash acquired | $ | — | $ | 278.8 | $ | 316.5 | $ | 348.4 | ||||||||||||||||||
| Cash received from divestitures, net of cash relinquished | $ | — | $ | 16.1 | $ | 17.4 | $ | 16.1 | ||||||||||||||||||
| Stock repurchases: | ||||||||||||||||||||||||||
Aggregate purchase price(1) | $ | 162.9 | $ | 181.0 | $ | 619.9 | $ | 434.8 | ||||||||||||||||||
| Shares repurchased (in millions) | 0.8 | 0.8 | 3.1 | 2.4 | ||||||||||||||||||||||
| New Vehicle Floorplan Assistance and Expense | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Variance | 2026 | 2025 | Variance | |||||||||||||||||||||||||||||||||
| Floorplan assistance earned (included in cost of sales) | $ | 34.0 | $ | 34.2 | $ | (0.2) | $ | 98.3 | $ | 100.0 | $ | (1.7) | ||||||||||||||||||||||||||
| New vehicle floorplan interest expense | (43.9) | (46.0) | 2.1 | (125.9) | (133.6) | 7.7 | ||||||||||||||||||||||||||||||||
| Net new vehicle inventory carrying expense | $ | (9.9) | $ | (11.8) | $ | 1.9 | $ | (27.6) | $ | (33.6) | $ | 6.0 | ||||||||||||||||||||||||||
| Balance Sheet and Other Highlights | September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||||
| Cash and cash equivalents | $ | 51.2 | $ | 58.6 | $ | 97.6 | ||||||||||||||
| Inventory | $ | 3,674.4 | $ | 3,404.9 | $ | 3,489.2 | ||||||||||||||
| Floorplan notes payable | $ | 4,019.4 | $ | 3,828.3 | $ | 3,796.6 | ||||||||||||||
Auto loans receivable, net | $ | 2,783.6 | $ | 2,140.2 | $ | 1,953.9 | ||||||||||||||
| Non-recourse debt | $ | 2,586.6 | $ | 1,944.6 | $ | 1,741.0 | ||||||||||||||
| Non-vehicle debt | $ | 4,343.7 | $ | 3,979.5 | $ | 3,833.1 | ||||||||||||||
| Equity | $ | 2,265.8 | $ | 2,341.1 | $ | 2,511.6 | ||||||||||||||
| New days supply (industry standard of selling days) | 52 days | 45 days | 47 days | |||||||||||||||||
| Used days supply (trailing calendar month days) | 43 days | 38 days | 37 days | |||||||||||||||||
Key Credit Agreement Covenant Compliance Calculations (2) | ||||||||
| Leverage ratio | 2.71x | |||||||
| Covenant | less than or equal to | 3.75x | ||||||
| Interest coverage ratio | 4.61x | |||||||
| Covenant | greater than or equal to | 3.00x | ||||||
(1) Excludes excise taxes imposed under Inflation Reduction Act.
(2) Calculated in accordance with our credit agreement as filed with the SEC on September 14, 2026.
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Income | Income Before Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 314.6 | $ | 372.4 | $ | 215.5 | $ | 287.6 | $ | 53.2 | $ | 72.5 | 24.7 | % | 25.2 | % | $ | 162.3 | $ | 215.1 | $ | 4.87 | $ | 5.65 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in compensation expense related to market valuation changes in deferred compensation obligations(4) | (2.5) | 7.7 | — | — | — | — | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Self-insurance related losses(5) | 8.7 | — | 8.7 | — | 2.1 | — | 6.6 | — | $ | 0.20 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer journey transformation costs(6) | 1.9 | — | 1.9 | — | 0.5 | — | 1.4 | — | $ | 0.04 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | — | 8.0 | — | 8.0 | — | 2.0 | — | 6.0 | $ | — | $ | 0.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance recoveries associated with CDK outage(7) | — | (40.0) | — | (40.0) | — | (9.8) | — | (30.2) | $ | — | $ | (0.79) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 322.7 | $ | 348.1 | $ | 226.1 | $ | 255.6 | $ | 55.8 | $ | 64.7 | 24.7 | % | 25.3 | % | $ | 170.3 | $ | 190.9 | $ | 5.11 | $ | 5.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A | SG&A as a Percentage of Gross Profit (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 849.1 | $ | 850.1 | 70.3 | 68.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Increase (decrease) in compensation expense related to market valuation changes in deferred compensation obligations | (2.5) | 7.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Self-insurance related losses | 8.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Customer journey transformation costs | 1.9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | — | 8.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 841.0 | $ | 834.4 | 69.6 | 67.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Please refer to the “Non-GAAP Financial Measures” section of the Press Release. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) | Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) | Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) | Increases (decreases) in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains and 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. Gains and losses related to the COLI are recorded in non-operating Other Income (Loss), Net. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) | Primarily related to losses from hail storms and other natural catastrophes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(6) | Represents third-party professional fees associated with discrete transformation initiatives that are incremental to our ongoing operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(7) | Insurance recoveries received under our cybersecurity insurance policies for business interruption and related losses caused by the CDK outage. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AUTONATION, INC.
UNAUDITED SUPPLEMENTARY DATA, Continued
($ in millions, except per share data)
Comparable Basis Reconciliations(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Income | Income Before Income Taxes | Income Tax Provision(2) | Effective Tax Rate | Net Income | Diluted Earnings Per Share(3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 947.9 | $ | 926.0 | $ | 735.0 | $ | 660.0 | $ | 185.2 | $ | 183.0 | 25.2 | % | 27.7 | % | $ | 549.8 | $ | 477.0 | $ | 16.12 | $ | 12.36 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in compensation expense related to market valuation changes in deferred compensation obligations(4) | 11.7 | 16.5 | — | — | — | — | — | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Self-insurance related losses(5) | 8.7 | — | 8.7 | — | 2.1 | — | 6.6 | — | $ | 0.19 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer journey transformation costs(6) | 1.9 | — | 1.9 | — | 0.5 | — | 1.4 | — | $ | 0.04 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, franchise rights, and other asset impairments(7) | — | 141.3 | — | 141.3 | — | 18.5 | — | 122.8 | $ | — | $ | 3.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | — | 8.0 | — | 8.0 | — | 2.0 | — | 6.0 | $ | — | $ | 0.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance recoveries associated with CDK outage(8) | — | (40.0) | — | (40.0) | — | (9.8) | — | (30.2) | $ | — | $ | (0.78) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (gain) loss on equity investments | — | — | (54.0) | 11.5 | (13.2) | 2.8 | (40.8) | 8.7 | $ | (1.20) | $ | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 stores | 4.1 | — | 4.3 | — | 1.0 | — | 3.3 | — | $ | 0.10 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 977.5 | $ | 1,051.8 | $ | 699.1 | $ | 780.8 | $ | 176.4 | $ | 196.5 | 25.2 | % | 25.2 | % | $ | 522.7 | $ | 584.3 | $ | 15.33 | $ | 15.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A | SG&A as a Percentage of Gross Profit (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 2,547.6 | $ | 2,526.7 | 69.8 | 67.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in compensation expense related to market valuation changes in deferred compensation obligations | 11.7 | 16.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Self-insurance related losses | 8.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Customer journey transformation costs | 1.9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related expenses | — | 8.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted | $ | 2,525.3 | $ | 2,502.2 | 69.2 | 67.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(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 and losses related to the COLI are recorded in non-operating Other Income (Loss), Net. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) | Primarily related to losses from hail storms and other natural catastrophes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(6) | Represents third-party professional fees associated with discrete transformation initiatives that are incremental to our ongoing operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(7) | 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(8) | Insurance recoveries received under our cybersecurity insurance policies for business interruption and related losses caused by the CDK outage. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Free Cash Flow | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by (used in) operating activities | $ | 160.4 | $ | (38.6) | ||||||||||
| Net proceeds from vehicle floorplan - non-trade | 71.9 | 74.6 | ||||||||||||
| Increase in auto loans receivable, net | 708.4 | 972.8 | ||||||||||||
| Adjusted cash provided by operating activities | 940.7 | 1,008.8 | ||||||||||||
| Purchases of property and equipment | (201.7) | (223.1) | ||||||||||||
| Adjusted free cash flow | $ | 739.0 | $ | 785.7 | ||||||||||
| Adjusted net income | $ | 522.7 | $ | 584.3 | ||||||||||
Adjusted free cash flow conversion %(1) | 141 | 128 | ||||||||||||
(1) 2025 Excludes cybersecurity insurance recoveries of $40 million received in the third quarter of 2025. | ||||||||||||||
AUTONATION, INC.
UNAUDITED SAME STORE DATA
($ in millions, except per vehicle data)
| Operating Highlights | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ Variance | % Variance | 2026 | 2025 | $ Variance | % Variance | |||||||||||||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle | $ | 3,237.4 | $ | 3,395.9 | $ | (158.5) | (4.7) | $ | 9,415.2 | $ | 9,995.5 | $ | (580.3) | (5.8) | ||||||||||||||||||||||||||||||||||||
| Retail used vehicle | 1,825.7 | 1,850.6 | (24.9) | (1.3) | 5,396.0 | 5,440.0 | (44.0) | (0.8) | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 147.1 | 138.6 | 8.5 | 6.1 | 444.7 | 403.8 | 40.9 | 10.1 | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle | 1,972.8 | 1,989.2 | (16.4) | (0.8) | 5,840.7 | 5,843.8 | (3.1) | (0.1) | ||||||||||||||||||||||||||||||||||||||||||
| Finance and insurance, net | 339.7 | 372.5 | (32.8) | (8.8) | 1,033.4 | 1,086.3 | (52.9) | (4.9) | ||||||||||||||||||||||||||||||||||||||||||
| Total variable operations | 5,549.9 | 5,757.6 | (207.7) | (3.6) | 16,289.3 | 16,925.6 | (636.3) | (3.8) | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service | 1,250.3 | 1,209.7 | 40.6 | 3.4 | 3,673.1 | 3,556.4 | 116.7 | 3.3 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 4.9 | 5.2 | (0.3) | 14.3 | 12.8 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 6,805.1 | $ | 6,972.5 | $ | (167.4) | (2.4) | $ | 19,976.7 | $ | 20,494.8 | $ | (518.1) | (2.5) | ||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle | $ | 133.9 | $ | 150.5 | $ | (16.6) | (11.0) | $ | 422.4 | $ | 508.0 | $ | (85.6) | (16.9) | ||||||||||||||||||||||||||||||||||||
| Retail used vehicle | 98.0 | 101.6 | (3.6) | (3.5) | 301.5 | 325.3 | (23.8) | (7.3) | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale | 5.0 | 12.6 | (7.6) | 34.9 | 37.1 | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle | 103.0 | 114.2 | (11.2) | (9.8) | 336.4 | 362.4 | (26.0) | (7.2) | ||||||||||||||||||||||||||||||||||||||||||
| Finance and insurance | 339.7 | 372.5 | (32.8) | (8.8) | 1,033.4 | 1,086.3 | (52.9) | (4.9) | ||||||||||||||||||||||||||||||||||||||||||
| Total variable operations | 576.6 | 637.2 | (60.6) | (9.5) | 1,792.2 | 1,956.7 | (164.5) | (8.4) | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service | 594.2 | 589.7 | 4.5 | 0.8 | 1,762.0 | 1,741.4 | 20.6 | 1.2 | ||||||||||||||||||||||||||||||||||||||||||
| Other | (1.0) | 0.9 | (1.9) | (0.7) | 1.5 | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 1,169.8 | $ | 1,227.8 | $ | (58.0) | (4.7) | $ | 3,553.5 | $ | 3,699.6 | $ | (146.1) | (3.9) | ||||||||||||||||||||||||||||||||||||
| Retail vehicle unit sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | 62,356 | 65,836 | (3,480) | (5.3) | 180,804 | 193,178 | (12,374) | (6.4) | ||||||||||||||||||||||||||||||||||||||||||
| Used | 63,703 | 67,988 | (4,285) | (6.3) | 190,674 | 203,654 | (12,980) | (6.4) | ||||||||||||||||||||||||||||||||||||||||||
| 126,059 | 133,824 | (7,765) | (5.8) | 371,478 | 396,832 | (25,354) | (6.4) | |||||||||||||||||||||||||||||||||||||||||||
| Revenue per vehicle retailed: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | $ | 51,918 | $ | 51,581 | $ | 337 | 0.7 | $ | 52,074 | $ | 51,742 | $ | 332 | 0.6 | ||||||||||||||||||||||||||||||||||||
| Used | $ | 28,660 | $ | 27,220 | $ | 1,440 | 5.3 | $ | 28,300 | $ | 26,712 | $ | 1,588 | 5.9 | ||||||||||||||||||||||||||||||||||||
| Gross profit per vehicle retailed: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New | $ | 2,147 | $ | 2,286 | $ | (139) | (6.1) | $ | 2,336 | $ | 2,630 | $ | (294) | (11.2) | ||||||||||||||||||||||||||||||||||||
| Used | $ | 1,538 | $ | 1,494 | $ | 44 | 2.9 | $ | 1,581 | $ | 1,597 | $ | (16) | (1.0) | ||||||||||||||||||||||||||||||||||||
| Finance and insurance | $ | 2,695 | $ | 2,784 | $ | (89) | (3.2) | $ | 2,782 | $ | 2,737 | $ | 45 | 1.6 | ||||||||||||||||||||||||||||||||||||
Total variable operations(1) | $ | 4,534 | $ | 4,667 | $ | (133) | (2.8) | $ | 4,731 | $ | 4,837 | $ | (106) | (2.2) | ||||||||||||||||||||||||||||||||||||
(1) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Percentages | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2026 (%) | 2025 (%) | 2026 (%) | 2025 (%) | |||||||||||||||||||||||
| Revenue mix percentages: | ||||||||||||||||||||||||||
| New vehicle | 47.6 | 48.7 | 47.1 | 48.8 | ||||||||||||||||||||||
| Used vehicle | 29.0 | 28.5 | 29.2 | 28.5 | ||||||||||||||||||||||
| Parts and service | 18.4 | 17.3 | 18.4 | 17.4 | ||||||||||||||||||||||
| Finance and insurance, net | 5.0 | 5.3 | 5.2 | 5.3 | ||||||||||||||||||||||
| Other | — | 0.2 | 0.1 | — | ||||||||||||||||||||||
| 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||
Gross profit mix percentages: | ||||||||||||||||||||||||||
| New vehicle | 11.4 | 12.3 | 11.9 | 13.7 | ||||||||||||||||||||||
| Used vehicle | 8.8 | 9.3 | 9.5 | 9.8 | ||||||||||||||||||||||
| Parts and service | 50.8 | 48.0 | 49.6 | 47.1 | ||||||||||||||||||||||
| Finance and insurance | 29.0 | 30.3 | 29.1 | 29.4 | ||||||||||||||||||||||
| Other | — | 0.1 | (0.1) | — | ||||||||||||||||||||||
| 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||||||
Operating items as a percentage of revenue: | ||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||
| New vehicle | 4.1 | 4.4 | 4.5 | 5.1 | ||||||||||||||||||||||
| Used vehicle - retail | 5.4 | 5.5 | 5.6 | 6.0 | ||||||||||||||||||||||
| Parts and service | 47.5 | 48.7 | 48.0 | 49.0 | ||||||||||||||||||||||
| Total | 17.2 | 17.6 | 17.8 | 18.1 | ||||||||||||||||||||||