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Third Quarter 2025 Earnings Release October 23, 2025 1
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Forward-Looking Statements 2 This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “estimates,” “intends,” “goals,” “targets,” “projects,” “plans,” “believes,” “continues,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, and investments, including AutoNation Finance, statements regarding our expectations for shareholder returns, potential tariff-related impacts, and the future performance of our business and the automotive retail industry, including during 2025, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward- looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: economic conditions, including changes in tariffs, unemployment, interest, and/or inflation rates, consumer demand, and fuel prices; our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments; our ability to maintain or improve gross profit margins; our ability to maintain or gain market share; legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; changes in automotive laws and regulations affecting our business, including fuel economy requirements; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
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Overview 3 HIGHLIGHTS Double-digit Domestic growth; record BEV sales Higher profitability YoY , strong wholesale performance 7% unit profitability, 4% unit volume Record 3Q total store gross profit; margin up 100bps Improving profitability and portfolio leverage Robust cash flow conversion Repurchases $435M, Acquisitions $384M, & CapEx $223M 3Q 2025 Strong performance and balanced capital deployment New Vehicle Unit Growth (SS) +4% Used Vehicle Unit Growth (SS) +2% CFS Gross Profit (SS) +11% After-Sales Gross Profit (SS) +7% AN Finance Portfolio $2+B Adjusted Free Cash Flow (YTD) $786M Capital Deployment (YTD) $1.0B
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Financial Summary 4 3Q 2024 3Q 2025 YoY Total Revenue $6,586 $7,037 7% Same-store New Vehicle +7%, After-Sales +6% Gross Profit $1,183 $1,238 5% Same-store CFS +11%, After-Sales +7% Used +2% Adj. SG&A Expense $797 $834 5% 67.4% of Gross Profit (Target 66 – 67%) Adj. Operating Income $320 $348 9% Modest improvement in margin rate Adj. Net Income $162 $191 18% Lower floorplan / ~25% effective tax rate Wtd. Avg. S/O 40.3 38.1 -5% Continued capital allocation priority Diluted Adj. EPS $4.02 $5.01 25% ($ in millions, except per share data) 3Q 2025 Refer to the Appendix for Non-GAAP Reconciliations
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New Vehicles 5 RETAIL UNITS & UNIT PROFITABILITY • Same store units increased 4%, led by increases in domestic and import brands • PVRs lower YoY driven by: • Lower manufacturer assistance • Domestic Mix • Record BEV sales, low exit inventory • Vehicle supply at 47 days (v. June 49 days) Retail Units Gross Profit per Unit 3Q 2025 5% 63,150 66,189 $2,804 $2,281 3Q 24 3Q 25
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6 RETAIL UNITS & UNIT PROFITABILITY 66,454 68,896 $1,589 $1,489 3Q 24 3Q 25 • Unit sales increased 4% from 2024 • Strong unit growth led by over $40k category (+17% YoY) • Total Used gross profit +3%, reflecting increased units and stronger wholesale • Lower PVR reflects higher acquisition costs • Vehicle supply at 37 days (v. June 39 days) Used Vehicles Retail Units Gross Profit per Unit 3Q 2025
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7 GROSS PROFIT ($M) & UNIT PROFITABILITY $335 $375 $2,588 $2,775 3Q 24 3Q 25 • Total unit sales increased 4%+ • Record total CFS profit – unit profitability increased YoY and QoQ • Improved margins on vehicle service contracts • Consistent attachment rates and higher finance penetration • Continued growth of AN Finance – superior long-term shareholder value, current quarter CFS unit profitability headwind (~$30 YoY) 3Q 2025 Customer Financial Services Gross Profit ($M) Gross Profit per Unit
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8 Sep. YTD 2025 Scaling the portfolio with improved profitability AutoNation Finance YTD PROFITABILITY ($M) PORTFOLIO BALANCE ($M) 69% 86%$942 $2,020 YTD 24 YTD 25 AN Equity Funding (%) Non-Recourse Debt Funded (%) 31% 14% • Attractive offerings driving strong customer take-up in high ROE business model • 10% penetration rate (vs 7% in 3Q 24) • Originations of $1.3+B in YTD 25 (vs. $0.7B in YTD 24) • Weighted average FICO of 697 YTD 25 (vs. 674 YTD 24) • 30+ Day Delinquencies 2.4% in 3Q 25, losses stable as a percent of portfolio • Improved funded status and doubled portfolio size without additional equity contribution -$10 $4 YTD 24 YTD 25
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9 REVENUE ($M) & GROSS MARGIN (%) • Same-store top-line and gross profit growth of 6% and 7% • Growth led by Customer Pay, Internal, and Warranty • Increased repair order count and value per repair order • Increased technician headcount After Sales $1,171 $1,226 47.7% 48.7% 3Q 24 3Q 25 Revenue ($M) Gross Profit Margin (%) 3Q 2025
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ADJ FCF ($M) & CONVERSION % 10 • Consistent, attractive cash conversion profile (100%) • Focused on working capital and cycle times (e.g. billing, time-to-auction, and service WIP) • CapEx discipline ($40M YoY reduction) • CDK business interruption insurance proceeds ($40M) Free Cash Flow $467M $786M 91% 134% YTD 2024 YTD 2025 Refer to the Appendix for Non-GAAP Reconciliations Adjusted FCF ($M) Conversion % Sep. YTD 2025
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CAPITAL ALLOCATION ($M) 11 • Continued strong cash conversion provides optionality • Disciplined CapEx (down 15% vs. YTD 24) • Through Sep. reduced shares outstanding by 6% from YE 24 at an average price of $183 • Leverage 2.35x – below the mid-point of targeted range (vs. 2.45x from YE 24) Capital Allocation Sep. YTD 24 Sep. YTD 25 Capital Expenditures $262 $223 M&A - $348 Share Repurchases $356 $435 Total $618 $1,006 Sep. YTD 2025
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12 Closing Comments • Strong execution and performance across the business • Healthy balance sheet and robust cash conversion • Focus on generating attractive returns through capital allocation and share repurchases • Well positioned for success in evolving landscape Durable business model proven in all economic environments
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10/22/2025 13 Appendix This presentation contains certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.
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Balance Sheet and Other Items 14 ($ in millions) 1: Leverage ratio calculated in accordance with credit agreement in place at the time of filing. Balance Sheet and Other Highlights 9/30/24 9/30/25 Cash and cash equivalents $60.2 $97.6 Inventory $3,530.8 $3,489.2 Floorplan notes payable $3,805.2 $3,796.6 Auto loans receivable, net $891.5 $1,953.9 Non-recourse debt (AN Finance funding) $645.9 $1,741.0 Non-vehicle debt $3,934.5 $3,833.1 Equity $2,371.2 $2,511.6 New days supply (industry standard of selling days) 52 Days 47 Days Used days supply (trailing calendar month days) 36 Days 37 Days Key Credit Agreement Covenant Compliance Calculations(1) Leverage ratio Less than or equal to 2.35x Covenant 3.75x Interest coverage ratio Greater than or equal to 4.79x Covenant 3.00x 3Q 2025
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NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) 15 Operating Income Income Before Income Taxes Income Tax Provision(2) Effective Tax Rate Net Income Diluted Earnings Per Share(3) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 As reported 350.7 372.4 247.4 287.6 61.6 72.5 24.9% 25.2% 185.8 215.1 4.61 5.65 Increase in compensation expense related to market valuation changes in deferred compensation obligations(4) 8.2 7.7 - - - - - - - - Acquisition-related expenses - 8.0 - 8.0 - 2.0 - 6.0 - 0.16 Cybersercurity insurance recoveries(5) - (40.0) - (40.0) - (9.8) - (30.2) - (0.79) Net loss on equity investments - - 6.7 - 1.6 - 5.1 - 0.13 - Self-insurance related losses (6) 5.7 - 5.7 - 1.4 - 4.3 - 0.11 - Business/property-related items: Net gains on dispositions, net of asset impairments (46.7) - (46.7) - (11.4) - (35.3) - (0.88) - Loss from operations resulting from dispositions 2.4 - 3.0 - 0.7 - 2.3 - 0.06 - Adjusted 320.3 348.1 216.1 255.6 53.9 64.7 24.9% 25.3% 162.2 190.9 4.02 5.01 Adjusted as % of Revenue 4.9% 4.9% Three Months Ended September 30, 2024, and September 30, 2025 SG&A SG&A as a Percentage of Gross Profit (%) 2024 2025 2024 2025 As reported 811.3 850.1 68.6 68.6 Excluding: Increase in compensation expense related to market valuation changes in deferred compensation obligations 8.2 7.7 Acquisition-related expenses - 8.0 Self-insurance related losses 5.7 - Adjusted 797.4 834.4 67.4 67.4 1.Please refer to the "Non-GAAP Financial Measures" section of the Press Release. 2.Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item. 3.Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. 4.Increases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains, related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, the net impact to net income and earnings per share is de minimis. Gains related to the COLI are recorded in non-operating Other Income, Net. 5.Insurance recoveries received under our cyber insurance policies for estimated business interruption and related losses caused by the CDK outage. 6.Primarily related to losses from hail storms and other natural catastrophes.
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NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) 16 Operating Income Income Before Income Taxes Income Tax Provision(2) Effective Tax Rate Net Income Diluted Earnings Per Share(3) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 As reported 966.0 926.0 674.9 660.0 168.8 183.0 25.0% 27.7% 506.1 477.0 12.31 12.36 Increase in compensation expense related to market valuation changes in deferred compensation(4) 16.3 16.5 - - - - - - - - Goodwill, franchise rights and other asset impairments (5) - 141.3 - 141.3 - 18.5 - 122.8 - 3.18 Acquisition-related expenses - 8.0 - 8.0 - 2.0 - 6.0 - 0.16 Cybersecurity insurance recoveries(6) - (40.0) - (40.0) - (9.8) - (30.2) - (0.78) One-time costs associated with CDK outage (7) 42.8 - 42.8 - 10.5 - 32.3 - 0.79 - Net loss on equity investments - - 6.7 11.5 1.6 2.8 5.1 8.7 0.12 0.23 Self-insurance related losses (8) 5.7 - 5.7 - 1.4 - 4.3 - 0.10 - Business/property-related items: Net gains on dispositions, net of asset impairments (46.7) - (46.7) - (11.4) - (35.3) - (0.86) - Loss from operations resulting from dispositions 2.4 - 3.0 - 0.7 - 2.3 - 0.06 - Adjusted 986.5 1,051.8 686.4 780.8 171.6 196.5 25.0% 25.2% 514.8 584.3 12.53 15.14 Adjusted as % of Revenue 5.0% 5.1% Nine Months Ended September 30, 2024, and September 30, 2025 SG&A SG&A as a Percentage of Gross Profit (%) 2024 2025 2024 2025 As reported 2,430.2 2,526.7 68.6 67.7 Excluding: Increase in compensation expense related to market valuation changes in deferred compensation 16.3 16.5 Acquisition-related expenses - 8.0 One-time costs associated with CDK outage 42.8 - Insurance-related losses 5.7 - Adjusted 2,365.4 2,502.2 66.7 67.0 1.Please refer to the "Non-GAAP Financial Measures" section of the Press Release. 2.Tax expense is determined based on the amount of additional taxes or tax benefits associated with each individual item. 3.Diluted earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. 4.Increases in deferred compensation obligations, which are recorded in SG&A, are substantially offset by corresponding gains, related to changes in the cash surrender value of corporate-owned life insurance ("COLI") for deferred compensation plan participants as a result of changes in market performance of the underlying investments; therefore, the net impact to net income and earnings per share is de minimis. Gains related to the COLI are recorded in non-operating Other Income, Net. 5.Includes goodwill impairment of $65.3 million, franchise rights impairment of $71.7 million, and other asset adjustments of $4.3 million. 6.Insurance recoveries received under our cyber insurance policies for estimated business interruption and related losses caused by the CDK outage. 7.Represents certain one-time costs incurred associated with the CDK outage, principally consisting of compensation paid to commission-based associates to ensure business continuity. 8.Primarily related to losses from hail storms and other natural catastrophes.
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Free Cash Flow Reconciliation 17 Free Cash Flow Reconciliation 2024 2025 Net cash provided by (used in) operating activities $164.9 ($38.6) Net Proceeds from (payments of) vehicle floorplan – non-trade ($24.0) $74.6 Increase in auto loans receivable, net $588.3 $972.8 Adj. cash provided by operating activities $729.2 $1,008.8 Purchases of Property and Equipment ($262.2) ($223.1) Adj. Free Cash Flow $467.0 $785.7 Adj. Net Income $514.8 $584.3 Adj. FCF Conversion % 91% 134% ($ in millions) Sep. YTD 2025
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SELECT HISTORICAL DATA Global Financial Crisis to 2025 18 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD FY Avg. New Light Vehicle SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 16.3 15.0 Retail SAAR (mm) 10.6 8.6 9.2 10.3 11.7 12.8 13.6 14.2 14.2 14.1 13.9 13.7 12.4 13.1 11.7 12.7 13.0 13.6 12.3 Ending LV Inventory (mm) 3.2 1.9 2.3 2.4 3.0 3.4 3.5 3.5 3.9 3.7 3.8 3.5 2.7 1.1 1.7 2.3 2.8 2.7 2.9 New Unit Sales (k) 255.8 183.4 206.5 224.0 267.8 292.9 318.0 339.1 337.6 329.1 310.8 282.6 249.7 262.4 230.0 244.5 254.7 194.4 ASP ($k) $30.3 $31.2 $32.3 $33.5 $33.3 $34.0 $34.5 $35.4 $36.3 $37.0 $37.8 $39.5 $41.7 $46.0 $51.1 $52.2 $51.2 $51.7 Gross PVR $1,997 $2,106 $2,185 $2,445 $2,164 $2,104 $2,044 $1,985 $1,883 $1,788 $1,660 $1,783 $2,340 $4,579 $5,942 $4,342 $3,045 $2,620 $2,611 Margin 6.6% 6.8% 6.8% 7.3% 6.5% 6.2% 5.9% 5.6% 5.2% 4.8% 4.4% 4.5% 5.6% 9.9% 11.6% 8.3% 5.9% 5.1% 6.6% ASP Y/Y 3% 4% 4% -1% 2% 2% 3% 3% 2% 2% 5% 6% 10% 11% 2% -2% 2.3% Days Supply 84 54 63 50 55 62 54 68 61 53 60 52 42 9 19 36 39 47 Used Unit Sales (k) 181.3 135.3 160.1 171.1 181.0 204.6 214.9 227.3 225.7 234.1 237.7 246.1 241.2 304.4 299.8 274.0 265.9 206.6 ASP ($k) $15.7 $16.3 $17.3 $17.8 $17.9 $18.1 $18.6 $19.2 $19.9 $19.5 $20.2 $21.0 $21.8 $26.5 $30.1 $27.9 $26.6 $26.7 Gross PVR $1,583 $1,664 $1,612 $1,640 $1,623 $1,590 $1,690 $1,577 $1,484 $1,315 $1,378 $1,409 $1,719 $2,045 $1,795 $1,800 $1,558 $1,591 $1,617 Margin 10.1% 10.2% 9.3% 9.2% 9.1% 8.8% 9.1% 8.2% 7.5% 6.7% 6.8% 6.7% 7.9% 7.7% 6.0% 6.5% 5.9% 6.0% 8.0% ASP Y/Y 4% 6% 3% 0% 1% 3% 4% 3% -2% 3% 4% 4% 21% 14% -7% -5% 1% Days Supply 30 41 42 31 35 35 38 43 44 43 42 39 39 40 31 39 37 37 Ratio Used : New Units 0.7 0.7 0.8 0.8 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.9 1.0 1.2 1.3 1.1 1.0 1.1 CFS PVR $1,104 $1,102 $1,143 $1,201 $1,273 $1,355 $1,409 $1,534 $1,588 $1,667 $1,789 $1,935 $2,158 $2,443 $2,713 $2,736 $2,612 $2,730 PVR Y/Y 0% 4% 5% 6% 6% 4% 9% 4% 5% 7% 8% 12% 13% 11% 1% -5% 6% After- Sales Gross ($mm) $1,072 $935 $963 $970 $1,008 $1,106 $1,197 $1,338 $1,435 $1,491 $1,555 $1,623 $1,461 $1,673 $1,900 $2,139 $2,209 $1,763 Gross Y/Y -13% 3% 1% 4% 10% 8% 12% 7% 4% 4% 4% -10% 15% 14% 13% 3% 7% Cash From Ops ($mm) $685 $370 $252 $376 $317 $484 $485 $507 $516 $540 $511 $769 $1,208 $1,628 $1,668 $724 $315 $-39 CapEx ($mm) $97 $75 $150 $149 $161 $161 $209 $248 $245 $310 $387 $269 $156 $216 $329 $410 $329 $223 M&A ($mm) $32 - $73 $64 $142 $88 $205 $322 $410 $77 $67 $5 - $433 $192 $271 - $348 Share Repurchase ($mm) $54 $136 $524 $583 $581 $53 $485 $235 $497 $435 $100 $45 $382 $2,303 $1,710 $864 $460 $435 *Data as reported of continuing operations.