- AutoNation (AN, Financial) reported a 4% increase in Q1 2025 revenue to $6.7 billion on a same-store basis.
- Same-store new vehicle retail unit sales rose by 7% to 62,379 units, driving new vehicle revenue up 10% to $3.2 billion.
- The company repurchased 1.4 million shares for $225 million, with acquisitions adding $220 million in annualized revenue.
AutoNation, Inc. (AN), a leading automotive retailer, announced mixed financial results for the first quarter of 2025. The company achieved a revenue of $6.7 billion, marking a 4% increase from the previous year. This growth was primarily driven by a robust 10% increase in new vehicle revenue, which reached $3.2 billion. The increase in revenue was attributed to a 7% boost in same-store new vehicle retail unit sales, totaling 62,379 units.
The company reported earnings per share (EPS) of $4.45, reflecting a slight decline of 1% compared to the prior year. However, adjusted EPS rose by 4% to $4.68, highlighting improved operational efficiency.
AutoNation continued its strategic focus on expansion and shareholder value. The company completed the acquisition of a Ford store and a Mazda store in Colorado for $70 million, expected to contribute an annualized revenue of $220 million. Additionally, AutoNation repurchased 1.4 million shares during the quarter, amounting to $225 million at approximately $165 per share. These activities are part of a broader capital allocation strategy aimed at enhancing shareholder returns.
While AutoNation's After-Sales segment reported a record gross profit of $568 million, the company's used vehicle revenue saw a decline of 3%, amounting to $1.9 billion. This segment experienced a 2% decrease in retail unit sales. Despite these challenges, AutoNation's diverse revenue streams and efficient cost management have positioned it well to navigate ongoing market dynamics.
CEO Mike Manley emphasized the company's resilience, noting that AutoNation's "flexible cost structure and strong cash flow generation" provide a solid foundation to continue delivering robust financial performance amidst economic uncertainties.
