Autonation, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 31 July 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue eased 1% to $6.9 billion: Second quarter revenue was $6.9 billion, down 1% from a year earlier. The company reported the change against the same period a year ago. Source
• Diluted EPS rose, adjusted EPS edged up: Diluted EPS was $5.39 against $2.26 a year earlier. Adjusted EPS was $5.56 against $5.46. Adjusted EPS excluded divestiture items of $5.7 million after tax. Source
• After-Sales gross profit hit a record: The company reported record After-Sales gross profit and Customer Pay growth of 7%. Parts and service revenue rose 3.4% to $1,263.0 million, and parts and service gross profit rose 1.4% to $607.1 million. Source
• Repurchases totaled $457 million in first half: The company repurchased 2.3 million shares for $457 million, or $200.59 per share, in the first half. In the second quarter alone it repurchased 0.8 million shares for $157.0 million. Source
• Acquired stores add scale and density: The acquisitions represent approximately $600 million in annual revenue and 9,700 retail new and used vehicle units a year, adding scale and density in key markets. Source

“AutoNation Finance continued to scale, growing the portfolio to $2.7 billion while substantially improving profitability.”

Mike Manley, Chief Executive Officer of AutoNation

What changed from last quarter

• New: Four dealerships acquired in June 2026: a Toyota store in the Atlanta area and three Premium Luxury stores in the San Francisco Bay area. Source

Results and growth drivers

• Revenue eased 1% to $6.9 billion: Second quarter revenue was $6.9 billion, down 1% from a year earlier. The company reported the change against the same period a year ago. Source
• Diluted EPS rose, adjusted EPS edged up: Diluted EPS was $5.39 against $2.26 a year earlier. Adjusted EPS was $5.56 against $5.46. Adjusted EPS excluded divestiture items of $5.7 million after tax. Source
• Operating income rose on prior-year impairments: Operating income was up 47% from a year earlier. The prior-year quarter carried franchise rights, goodwill and other asset impairments, which did not recur in the current quarter. Source
• Six-month adjusted profit declined: Six-month adjusted operating income was $654.8 million, down 7%, and adjusted net income was $352.4 million, down 10%. Adjusted diluted EPS was $10.24, up 1%. Source
• Six-month diluted EPS rose 67%: Six-month diluted EPS was $11.26 against $6.73. Weighted average diluted shares were 34.4 million against 38.9 million a year earlier. Source

Segments and brands

• Import and premium revenue rose; Domestic fell: Import revenue rose 3.9% to $2,233.1 million and premium luxury rose 0.9% to $2,579.7 million. Domestic revenue fell 6.6% to $1,793.1 million. Source
• Segment income lower across all three brands: Segment income was $74.0 million for Domestic, $123.5 million for Import and $156.9 million for Premium Luxury, against $92.0 million, $133.4 million and $180.1 million a year earlier. Source
• Corporate loss narrowed from prior year: The corporate and other segment loss was $89.8 million, against $235.2 million a year earlier. Corporate and other revenue fell 7.4% to $323.9 million. Source

“we deployed significant capital for share repurchases and acquisitions to improve density in existing markets.”

Mike Manley, Chief Executive Officer of AutoNation

Products and customers

• Revenue per vehicle rose: Revenue per retailed new vehicle was $52,067, up 0.9%, and per used vehicle was $28,674, up 8.4%. Source
• After-Sales gross profit hit a record: The company reported record After-Sales gross profit and Customer Pay growth of 7%. Parts and service revenue rose 3.4% to $1,263.0 million, and parts and service gross profit rose 1.4% to $607.1 million. Source
• Toyota share of new retail units rose: Toyota accounted for 23.5% of retail new vehicle units, against 21.2% a year earlier. Honda was 12.7%, against 12.8%. Source

Costs, margins and pricing

• Gross profit fell 3% on vehicle lines: Gross profit was $1,231.1 million, down 3%. New vehicle gross profit fell 17.9% to $150.6 million and used vehicle gross profit fell 8.2% to $115.1 million. Source
• SG&A rose to 69.6% of gross profit: SG&A was 69.6% of gross profit, against 67.0%. Excluding a $16.8 million rise in deferred compensation expense, the ratio was 68.2%, against 66.2%. Source
• Effective tax rate fell to 25.3%: The effective tax rate was 25.3%, against 37.6% a year earlier. Net income was $182.1 million, against $86.4 million. Source

Demand and the order book

• Same-store new and used units fell: Same-store new retail units fell 5% to 62,435 and same-store used retail units fell 8% to 63,428 in the quarter. Source
• New days supply rose to 53 days: New days supply was 53 days, against 45 days at December 31, 2025 and 49 days a year earlier. Used days supply was 38 days, against 38 and 39 days. Source
• Wholesale revenue rose 15%: Wholesale revenue rose 15.2% to $161.3 million for the quarter. Retail used vehicle revenue rose 0.3% to $1,850.1 million. Source

Capital, cash and returns to shareholders

• Six-month adjusted free cash flow reported: Adjusted free cash flow was $439.2 million for the first six months. Cash used in operating activities was $48.9 million, and capital expenditures were $126.0 million. Source
• Repurchases totaled $457 million in first half: The company repurchased 2.3 million shares for $457 million, or $200.59 per share, in the first half. In the second quarter alone it repurchased 0.8 million shares for $157.0 million. Source
• Repurchases continued into late July: Year-to-date through July 29, 2026, repurchases totaled $470 million, or $200.46 per share, for 2.3 million shares. Source
• Liquidity stood at $1.0 billion: Liquidity was $1.0 billion, including $53 million of cash and $0.9 billion of revolving credit availability, net of commercial paper borrowings. Source
• Covenant leverage ratio at 2.8x: The covenant leverage ratio was 2.8x at quarter-end, or 2.7x net of cash. Non-vehicle debt was $4.4 billion. The interest coverage ratio was 4.67x against a 3.00x covenant minimum. Source

Strategy and investment

• Acquired stores add scale and density: The acquisitions represent approximately $600 million in annual revenue and 9,700 retail new and used vehicle units a year, adding scale and density in key markets. Source
• Cash paid for acquisitions $316.5 million: Cash paid for acquisitions, net of cash acquired, was $316.5 million in the second quarter. Divestiture proceeds were $4.7 million in the quarter and $17.4 million in the first half. Source
• AN Finance income rose: AutoNation Finance income was $10.7 million against $2.0 million, and $20.1 million for six months against $2.1 million. Auto loans receivable, net, reached $2,589.1 million. Source

Figures management reported

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.