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Sep 30
AutoNation Q3 2025 Earnings Report
AutoNation reported strong third quarter 2025 results with revenue growth across all major categories and increased EPS.
Key Takeaways
AutoNation delivered a strong third quarter in 2025, with total revenue increasing by 7% to $7.0 billion. Diluted EPS rose by 23% to $5.65, and Adjusted EPS increased by 25% to $5.01. The company saw robust growth in After-Sales and Customer Financial Services gross profit, alongside strong cash flow and strategic capital deployment.
Total revenue for Q3 2025 increased by 7% to $7.0 billion, driven by growth across all major categories.
Diluted EPS for Q3 2025 was $5.65, a 23% increase from the prior year, while Adjusted Diluted EPS grew 25% to $5.01.
After-Sales gross profit reached $597 million, up 7%, with a gross margin of 48.7%, an increase of 100 basis points.
Customer Financial Services (CFS) achieved a record gross profit of $375 million, up 12%, reflecting strong unit profitability.
AutoNation
AutoNation
AutoNation Revenue by Segment
AutoNation Revenue by Geographic Location
Revenue by Segment
New Vehicle Revenue
CapyFin.comUsed Vehicle Revenue
CapyFin.comParts and Service Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comImport Revenue
CapyFin.comPremium Luxury Revenue
CapyFin.comCorporate and other Revenue
CapyFin.com Forward Guidance
AutoNation is positioned for continued strong results and capital deployment, leveraging multiple revenue streams, a flexible cost structure, and a strong balance sheet.
Positive Outlook
- Continued scaling of AutoNation Finance, growing the portfolio to over $2 billion while improving profitability.
- Strategic acquisitions of Audi and Mercedes-Benz stores in Chicago, and Mazda and Ford stores in Denver, adding over $500 million in annual revenues and enhancing market density.
- Strong cash flow generation, enabling significant capital deployment for share repurchases and acquisitions.
- Maintenance of an investment-grade balance sheet, providing financial stability and flexibility.
- Multiple revenue streams and a flexible cost structure are expected to support ongoing strong performance.
Challenges Ahead
- Higher non-cash credit provisioning in AutoNation Finance due to significant loan origination growth.
- New vehicle gross profit per vehicle retailed decreased by 18.7% compared to the prior year.
- Used vehicle gross profit per vehicle retailed decreased by 6.3% compared to the prior year.
- Operating income for the nine months ended September 30, 2025, decreased by 4% compared to the prior year.
- Net income for the nine months ended September 30, 2025, decreased by 6% compared to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income