Autonation Stock Earnings Reports

AutoNation reported a solid Q1 2026 driven by strong aftersales and growing Customer Financial Services (CFS) momentum, delivering adjusted EPS of $4.69 — the fifth consecutive quarter of year-over-year adjusted EPS growth. Adjusted free cash flow was $256 million, enabling disciplined capital deployment including about $300 million of share repurchases in the quarter and continued opportunistic M&A evaluation. Aftersales delivered a first-quarter record gross profit of $593 million (same-store GP +3%), led by customer pay and warranty; internal reconditioning declined on lower used volumes. AutoNation Finance scaled meaningfully, ending the quarter with roughly $2.45 billion in receivables, improved funding (including a $750 million ABS), rising originations and improving credit metrics (average FICO ~700, 30-day delinquency ~2.1%). New vehicle volumes were down in line with the market (tariff- and BEV-related comps), but new vehicle per-unit profitability improved sequentially. Used operations showed improved mix and sequential GPU gains, with inventory aging improved heading into Q2. SG&A was elevated as a % of gross profit due to strategic upper-funnel and technology investments and some unfavorable self-insurance/weather claims (~$5 million), but management expects SG&A to moderate through the year while continuing targeted investments in brand, technology and AI-driven productivity. Balance sheet remains within target leverage (2.57x EBITDA) and management emphasizes strong cash conversion, investment-grade profile and continued shareholder-focused capital allocation (buybacks and selective reinvestment).