AutoNation Reports Third Quarter 2025 Results
AutoNation, Inc., one of the largest automotive retailers in the United States, has released its third quarter 2025 results through an SEC 8-K filing. The report highlights significant financial and operational achievements, reflecting the company's robust performance and strategic initiatives.
Financial Highlights
For the third quarter of 2025, AutoNation reported a revenue of $7.0 billion, marking a 7% increase compared to the same period last year. The company's earnings per share (EPS) rose to $5.65, up 23% from $4.61 a year ago. Adjusted EPS also saw a notable increase, reaching $5.01, a 25% rise from $4.02 in the previous year. The after-sales gross profit was $597 million, with a gross margin of 48.7%, up 100 basis points. Additionally, the Customer Financial Services (CFS) gross profit hit a record $375 million, up 12% year-over-year.
Business and Operational Highlights
AutoNation's operational performance was strong across various segments. Same-store revenue increased by 6% to $6.9 billion, driven by higher new vehicle unit sales and increased average new vehicle selling prices. New vehicle revenue rose by 7% to $3.4 billion, while used vehicle revenue increased by 5% to $2.0 billion. The Customer Financial Services segment saw an 11% increase in revenue, reaching $368 million. After-sales revenue also grew by 6% to $1.2 billion.
In terms of unit sales, same-store new vehicle retail unit sales increased by 4% to 65,425 units, and same-store used vehicle retail unit sales rose by 2% to 67,288 units.
Strategic Initiatives and Corporate Developments
AutoNation continued to focus on strategic capital deployments, including share repurchases and acquisitions. During the quarter, the company repurchased 0.8 million shares for $181 million. Year-to-date, AutoNation has repurchased 2.8 million shares for $523 million. The company also acquired an Audi and a Mercedes-Benz store in Chicago, adding to its acquisitions of a Mazda and a Ford store in Denver earlier this year. These acquisitions represent more than $500 million in annual revenues.
As of September 30, 2025, AutoNation had $1.8 billion in liquidity, including $98 million in cash and $1.7 billion of availability under its revolving credit facility. The company's covenant leverage ratio stood at 2.35x, with $3.8 billion of non-vehicle debt outstanding.
Management's Perspective
Mike Manley, Chief Executive Officer of AutoNation, expressed satisfaction with the company's performance, highlighting the robust growth across various business segments. He emphasized the strong cash flow and strategic capital deployments aimed at enhancing shareholder returns. Manley also noted the scaling of AutoNation Finance, which grew its portfolio to over $2 billion while improving profitability.
Future Outlook
AutoNation's leadership remains optimistic about the company's future performance, citing multiple revenue streams, a flexible cost structure, and a strong balance sheet as key factors that position the company for continued success. The company plans to continue its focus on strategic acquisitions and capital deployments to drive growth and shareholder value.
Original SEC Filing: AUTONATION, INC. [ AN ] - 8-K - Oct. 23, 2025