AutoCanada (ACQ) Q3 2025 earnings summary

Executive summary

• Leadership transition with Paul Antony stepping down and Samuel Cochrane appointed Interim CEO, focusing on completing transformation and operational excellence for 2026.

• 2025 marked a transformational year, with a $115M operational transformation plan underway and $98M in annualized savings realized by Q3 2025.

• Strategic review prioritized core Canadian dealership and collision operations, exiting unprofitable U.S. operations, and closing all RightRide locations.

• Revenue from continuing operations fell 14.9% year-over-year to $1,201.5 million, driven by declines in new and used vehicle sales, parts and service, and F&I, partially offset by growth in collision repair revenue.

• Leadership team strengthened with key promotions and planned executive transitions to support the next growth phase.

Financial highlights

• Q3 2025 revenue from continuing operations was $1,201.5M, down 14.9% year-over-year due to declines in new and used vehicle sales, parts, service, and F&I.

• Adjusted EBITDA from continuing operations was $58.1 million, down 7.9% year-over-year, but margin improved to 4.8%.

• Gross profit decreased 22.2% year-over-year, while normalized operating expenses before depreciation dropped 23.4% year-over-year.

• Floorplan financing costs declined 44.3% year-over-year due to lower inventory and interest rates.

• Net income from total operations rose to $16.8 million from $7.1 million, but net loss from continuing operations was $(2.9) million versus income of $27.2 million last year.

Outlook and guidance

• Management expects to complete the transformation plan by year-end 2025, targeting $115M in annual run-rate savings.

• Cost transformation nearing completion, with $100 million of $150 million annual run rate savings achieved as of September 30.

• Sales activity is expected to normalize in 2026, supported by a leaner, more efficient operating model.

• Near-term M&A activity to focus on collision business, with broader dealership acquisitions considered once leverage targets are met.

• Forward-looking statements highlight risks related to cost-savings realization, customer demand, and access to capital.