AutoNation Reports Second Quarter 2025 Results

AutoNation, Inc., one of the largest automotive retailers in the United States, has released its second quarter 2025 financial results. The company reported an 8% increase in revenue, driven by growth in new vehicle sales, customer financial services, and after-sales services. Despite this revenue growth, the company experienced a decline in GAAP earnings per share (EPS) but saw a significant increase in adjusted EPS.

Financial Highlights

For the second quarter of 2025, AutoNation reported:

• Revenue of $7.0 billion, up 8% from the same period in 2024.
• GAAP EPS of $2.26, down 29% from $3.20 in the previous year.
• Adjusted EPS of $5.46, up 37% from $3.99 in the previous year.
• Gross profit of $1.3 billion, a 10% increase year-over-year.
• Net income of $86.4 million, down 34% from $130.2 million in the previous year.

Business and Operational Highlights

AutoNation's operational performance showed robust growth across various segments:

• New vehicle revenue increased by 9% to $3.4 billion.
• Used vehicle revenue grew by 4% to $2.0 billion.
• After-sales revenue rose by 12% to $1.2 billion.
• Customer financial services revenue increased by 13% to $363 million.

The company also reported a record after-sales gross profit of $599 million, up 12% year-over-year.

Strategic Initiatives and Corporate Developments

AutoNation completed a highly successful $700 million asset-backed securitization for its AN Finance division, which was oversubscribed and achieved nearly 100% debt funding. The company also repurchased 1.5 million shares of common stock for $254 million during the first half of 2025, with $607 million of repurchase authorization remaining.

Management's Perspective

Mike Manley, CEO of AutoNation, expressed satisfaction with the company's performance, highlighting strong execution and productivity. He noted the company's multiple revenue streams, flexible cost structure, and solid cash flow generation as key factors positioning AutoNation for continued success and attractive shareholder returns.

Future Outlook

While the report did not provide specific forward-looking guidance, the company's strategic initiatives and strong financial position suggest a positive outlook for the remainder of 2025. AutoNation's focus on enhancing its revenue streams and maintaining operational efficiency will be critical in navigating the evolving automotive retail landscape.

SEC Filing: AUTONATION, INC. [ AN ] - 8-K - Jul. 25, 2025