AutoNation (AN) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with total revenue up 3.2% to $6.69 billion, record aftersales gross profit, and robust new vehicle growth; adjusted EPS rose 4% to $4.68, while reported EPS was $4.45.

• Same-store new vehicle unit sales rose 7% year-over-year, with premium luxury up 14%, domestic up 6%, and import up 2%.

• Used vehicle gross profit increased 12%-13%, with strong demand for sub-$20,000 vehicles; total gross profit rose 2%-3%.

• Customer Financial Services and AN Finance delivered strong results, with AN Finance originating $460 million in loans and reaching profitability ahead of expectations.

• $225 million in share repurchases and $70 million in acquisitions added $220 million in annualized revenue, reducing share count by 3%-4%.

Financial highlights

• Total revenue was $6.7 billion, up 3%-4% year-over-year (4% same-store); gross profit reached $1.22 billion, up 2%-3%.

• Adjusted net income was $184 million, down 3% year-over-year; net income was $175.5 million, down 8%.

• Adjusted EPS grew 4% to $4.68; reported EPS was $4.45.

• Free cash flow conversion was 129% of adjusted net income; adjusted FCF was $237 million.

• SG&A as a percentage of gross profit increased to 67.4%, up from 65.6% last year.

Outlook and guidance

• SG&A as a percentage of gross profit expected to remain in the 66%-67% range for the full year.

• Management expects continued cash generation, prudent capital deployment, and durable business model despite tariff uncertainties.

• Aftersales business expected to grow mid-single digits annually; expansion of finance and used vehicle stores remains a focus.

• New vehicle margins expected to moderate due to increased supply and potential tariff impacts.