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Dec 31, 2025
AutoNation Q4 2025 Earnings Report
AutoNation reported fourth quarter and full year results for 2025, with a decrease in Q4 revenue but an increase in full year revenue, alongside growth in After-Sales gross profit and Customer Financial Services unit profitability.
Key Takeaways
AutoNation reported a mixed fourth quarter for 2025, with total revenue decreasing by 4% to $6.9 billion compared to the previous year. Despite this, the company achieved record gross profit in After-Sales and record unit profitability in Customer Financial Services. Diluted EPS increased by 1% to $4.70, and Adjusted Diluted EPS rose by 2% to $5.08. For the full year, AutoNation saw a 3% increase in revenue to $27.6 billion and significant growth in Adjusted EPS, alongside substantial share repurchases and strategic acquisitions.
Fourth quarter 2025 revenue decreased by 4% to $6.9 billion compared to the prior year, primarily due to lower new and used vehicle unit sales.
The company achieved record gross profit in After-Sales and record unit profitability in Customer Financial Services for the fourth quarter.
Diluted EPS for Q4 2025 was $4.70, a 1% increase year-over-year, and Adjusted Diluted EPS was $5.08, up 2% from the previous year.
AutoNation repurchased 1.7 million shares for $350 million in Q4 2025, contributing to a 10% share reduction for the full year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
AutoNation's forward guidance emphasizes continued strategic capital deployment, including share repurchases and acquisitions, to enhance market density and shareholder returns. The company aims to leverage its multiple revenue streams, flexible cost structure, and strong balance sheet to deliver robust financial results.
Positive Outlook
- Continued scaling of AutoNation Finance, growing its portfolio to $2.2 billion with improved profitability and funded status.
- Strategic acquisitions, such as Toyota, Audi, Mercedes-Benz, Mazda, and Ford stores, are expected to add over $650 million in annual revenues and enhance market density.
- Significant capital deployment for share repurchases, with $968 million remaining under the current authorization, indicating ongoing commitment to shareholder returns.
- Successful completion of a second asset-backed term securitization for AN Finance, securing $749.2 million in funding at a favorable weighted-average fixed interest rate of 4.25%.
- Strong liquidity position with $1.8 billion, including $59 million in cash and $1.7 billion availability under its revolving credit facility.
Challenges Ahead
- Unit volumes for new vehicles faced strong comparisons from the fourth quarter 2024, indicating potential challenges in maintaining high growth rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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