Autonation, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 30 October 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EPS rose, GAAP EPS fell: Adjusted diluted EPS was $5.11 against $5.01, up 2%. Diluted EPS was $4.87 against $5.65, down 14%; the prior-year figure included a $40 million CDK insurance recovery. Source
• After-Sales gross profit set a record: Parts and service revenue rose 5.2% to $1,290.0 million, and parts and service gross profit rose 3.3% to $616.6 million. That was 51.1% of total gross profit, against 48.2%. Source
• AN Finance income and portfolio grew: AutoNation Finance income was $15.4 million against $1.5 million. The release gives portfolio growth above 40% and profit up tenfold year over year. Source
• Gross profit fell 2.5%: Gross profit was $1,207.6 million, down 2.5%, against $1,238.4 million a year earlier. Source
• New vehicle gross profit fell: New vehicle gross profit fell 7.9% to $139.1 million. Gross profit per retail new unit was $2,176, down 4.6%, and nine-month per-unit gross profit fell 10.3%. Source
• Adjusted free cash flow reached $739M: Adjusted free cash flow was $739.0 million for nine months, or 141% of adjusted net income, against $785.7 million (128%) a year earlier. Source
• Nine-month buybacks reached $620M: Nine-month repurchases were $619.9 million for 3.1 million shares, against $434.8 million a year earlier. Shares outstanding fell to 32.3 million from 36.9 million. Source

“Our team delivered another solid quarter, growing adjusted EPS for the seventh consecutive quarter,”

Mike Manley, Chief Executive Officer of AutoNation

Guidance

What changed from last quarter

• New: The unsecured credit agreement was amended: revolving capacity raised to $2.0 billion and maturity extended to September 14, 2031. Source
• New: Commercial paper program capacity was increased to $2.0 billion, matching the revolving credit facility. Source

Third-quarter results and growth drivers

• Adjusted EPS rose, GAAP EPS fell: Adjusted diluted EPS was $5.11 against $5.01, up 2%. Diluted EPS was $4.87 against $5.65, down 14%; the prior-year figure included a $40 million CDK insurance recovery. Source
• Revenue flat, operating income down: Revenue was $7,010.3 million against $7,037.4 million, down 0.4%. Operating income was $314.6 million, down 15.5%, and net income was $162.3 million, down 25%. Source
• Adjusted operating income fell 7%: Adjusted operating income was $322.7 million against $348.1 million, down 7%. Adjusted net income was $170.3 million, down 11%. Source
• Fewer shares lifted per-share results: Diluted weighted average shares fell 13% to 33.3 million. Shares outstanding at period end were 32.3 million, against 36.9 million a year earlier. Source

Brand segments and regions

• Domestic segment income fell most: Domestic revenue fell 7.1% to $1,807.2 million and segment income fell 19.4% to $65.5 million, as retail new units fell 12.3%. Source
• Import revenue rose, income fell: Import revenue rose 3.6% to $2,252.2 million, while import segment income fell 6.8% to $115.3 million. Toyota rose to 23.3% of retail new units from 21.9%. Source
• Premium luxury revenue edged up: Premium luxury revenue rose 2.8% to $2,630.3 million, and segment income fell 6.4% to $150.6 million. Mercedes-Benz rose to 8.9% of retail new units from 8.2%. Source
• Corporate and other loss widened: Corporate and other revenue fell 10.8% to $320.6 million. Its segment loss was $77.6 million, against $42.5 million a year earlier. Source

“We utilized nearly 85 percent of our adjusted free cash flow for share repurchases, reducing shares outstanding by 9 percent year-to-date.”

Mike Manley, Chief Executive Officer of AutoNation

After-Sales and AN Finance

• After-Sales gross profit set a record: Parts and service revenue rose 5.2% to $1,290.0 million, and parts and service gross profit rose 3.3% to $616.6 million. That was 51.1% of total gross profit, against 48.2%. Source
• AN Finance income and portfolio grew: AutoNation Finance income was $15.4 million against $1.5 million. The release gives portfolio growth above 40% and profit up tenfold year over year. Source
• Auto loan book grew: Auto loans receivable, net, reached $2,783.6 million, against $1,953.9 million a year earlier. Provision for credit losses was $17.2 million, against $22.0 million. Source
• Finance and insurance per unit fell: Finance and insurance net revenue fell 6.9% to $349.0 million. Finance and insurance gross profit per retail unit was $2,698, down 2.8%. Source

Costs, margins and gross profit

• Gross profit fell 2.5%: Gross profit was $1,207.6 million, down 2.5%, against $1,238.4 million a year earlier. Source
• New vehicle gross profit fell: New vehicle gross profit fell 7.9% to $139.1 million. Gross profit per retail new unit was $2,176, down 4.6%, and nine-month per-unit gross profit fell 10.3%. Source
• Used retail gross profit fell: Retail used gross profit fell 2.8% to $99.7 million, while gross profit per used unit rose 2.4% to $1,524. Used vehicle retail unit sales fell 5.1%. Source
• SG&A rose as share of gross profit: SG&A was $849.1 million, down 0.1%, but was 70.3% of gross profit against 68.6%. Adjusted SG&A was 69.6% of gross profit against 67.4%. Source
• Self-insurance losses excluded from adjusted: Adjusted results excluded $8.7 million of pre-tax self-insurance losses, equal to $6.6 million after tax or $0.20 a share. Source
• Transformation costs excluded from adjusted: Customer journey transformation costs of $1.9 million were also excluded from adjusted results. Source

“we have secured Board authorization for an additional $1 billion in share repurchases”

Mike Manley, Chief Executive Officer of AutoNation

Vehicle volumes and days supply

• Same-store new units fell 5.3%: Same-store new retail units were 62,356, down 5.3% from 65,836. Nine-month same-store new units fell 6.4%. Source
• Same-store used units fell 6.3%: Same-store used retail units were 63,703, down 6.3% from 67,988. Nine-month same-store used units fell 6.4%. Source
• Toyota share of new units rose: Toyota rose to 23.3% of retail new units from 21.9%, while Domestic brands fell to 26.9% from 29.6%. Source
• Days supply rose from a year earlier: New days supply was 52 days, against 47 a year earlier. Used days supply was 43 days, against 37. Source

Cash flow, liquidity and leverage

• Adjusted free cash flow reached $739M: Adjusted free cash flow was $739.0 million for nine months, or 141% of adjusted net income, against $785.7 million (128%) a year earlier. Source
• Operating cash flow described two ways: The narrative describes $160.4 million as cash used in operating activities, while the free cash flow table shows it as net cash provided of $160.4 million. Source
• Auto loan growth shows in non-recourse debt: Non-recourse debt rose to $2,586.6 million from $1,944.6 million at year-end 2025. Auto loans receivable rose $708.4 million in nine months. Source
• Liquidity and covenant ratios: Liquidity was $1.5 billion, including $51 million of cash. Covenant leverage was 2.71x against a 3.75x maximum, and interest coverage was 4.61x against a 3.00x minimum. Source
• Capital expenditures lower year to date: Capital expenditures were $75.7 million in the quarter, against $68.9 million. Nine-month capital expenditures were $201.7 million, against $223.1 million. Source

Share repurchases and shareholder returns

• Nine-month buybacks reached $620M: Nine-month repurchases were $619.9 million for 3.1 million shares, against $434.8 million a year earlier. Shares outstanding fell to 32.3 million from 36.9 million. Source
• Third-quarter buybacks held near prior level: Third-quarter repurchases were $162.9 million for 0.8 million shares, against $181.0 million for 0.8 million shares a year earlier. Source
• Repurchases continued into October: Through October 28, 2026, the company had repurchased 3.4 million shares for $668 million, at an average of $194.99 per share. Source
• No acquisitions paid in quarter: No acquisition payments were made in the third quarter, against $278.8 million a year earlier. Nine-month acquisition payments were $316.5 million. Source

Nine-month trends

• Nine-month revenue and gross profit lower: Nine-month revenue was $20,492.2 million, down 1%. Gross profit was $3,649.8 million, down 2%. Source
• Nine-month operating and net income higher: Nine-month operating income was $947.9 million, up 2%, and net income was $549.8 million, up 15%. The prior year included goodwill and franchise rights impairments. Source
• Nine-month same-store gross profit lower: Nine-month same-store revenue fell 2.5% to $19,976.7 million, and same-store gross profit fell 3.9% to $3,553.5 million. Source
• Nine-month adjusted measures lower: Nine-month adjusted operating income was $977.5 million, down 7%, and adjusted net income was $522.7 million, down 11%. Source
• Nine-month diluted EPS higher: Nine-month diluted EPS was $16.12 against $12.36, up 30%. Nine-month adjusted diluted EPS was $15.33 against $15.14, up 1%. Source

Figures management reported

Other quarters

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

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.