olivLaw · US equity research
AutoNation, Inc. AN
Retail-Auto Dealers & Gasoline Stations · SIC 5500 · Vertical: Retail-Auto Dealers & Gasoline Stations (SIC 5500)
AutoNation is one of the largest automotive retailers in the United States, with a dealership network concentrated in major Sunbelt metropolitan markets and revenue spread across new and used vehicles, service and financing. For investors following the sector it illustrates how parts, service and finance can offset a more volatile demand for new vehicles, amid tariffs and fragile affordability, with revenue of about 13.5 billion dollars in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, AutoNation, Inc. (AN) stock was 183.47 USD (+2.78% on the day), with market capitalisation 5.9 bn USD, P/E 8.8 on diluted EPS of 20.81 USD over the last 12 months, beta 0.81, 52-week range 153.01–229.98 USD. Latest reported quarter (Q3 2026): revenue of 7.0 bn USD (−0.4% YoY), net income of 162.3 m USD (−24.5% YoY), diluted EPS 4.87 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.4
- strong (55–70)
- Bollinger (20, 2)
- 144.77 – 183.64
- in the upper half of the band · %B 1.00 · band width 23.7%
- SMA 50 / 200
- 175.99 / 193.17
- mixed trend
- MACD (12, 26, 9)
- 2.31 / -1.54
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +13.5% | −1.1% | +14.6 pp | — |
| 3 months | −15.0% | −0.5% | −14.5 pp | — |
| 6 months | −10.4% | +4.4% | −14.8 pp | — |
| Year to date | −11.1% | +12.3% | −23.5 pp | — |
| 1 year | −5.6% | +13.5% | −19.1 pp | +0.3% |
| 3 years | +31.1% | +76.4% | −45.3 pp | −0.4% |
| 5 years | +48.4% | +63.7% | −15.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.2 bn | 6.7 bn | 7.0 bn | 7.0 bn | 6.9 bn | 6.6 bn | 6.9 bn | 7.0 bn |
| Cost of revenue | 6.0 bn | 5.5 bn | 5.7 bn | 5.8 bn | 5.7 bn | 5.3 bn | 5.7 bn | 5.8 bn |
| Gross profit | 1.2 bn | 1.2 bn | 1.3 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn |
| SG&A | 833.7 m | 821.9 m | 854.7 m | 850.1 m | 835.5 m | 842.2 m | 856.3 m | 849.1 m |
| Operating income | 339.5 m | 336.0 m | 217.6 m | 372.4 m | 313.9 m | 314.3 m | 319.0 m | 314.6 m |
| Interest expense | 43.4 m | 42.3 m | 46.2 m | 45.1 m | 46.4 m | 48.0 m | 49.9 m | 51.7 m |
| Pre-tax income | 241.8 m | — | — | — | — | — | — | — |
| Income tax | 55.7 m | 58.5 m | 52.0 m | 72.5 m | 52.4 m | 70.3 m | 61.7 m | 53.2 m |
| Net income | 186.1 m | 175.5 m | 86.4 m | 215.1 m | 172.1 m | 205.4 m | 182.1 m | 162.3 m |
| Diluted EPS | 4.62 ≈ | 4.45 | 2.26 | 5.65 | 4.70 ≈ | 5.85 | 5.39 | 4.87 |
| Operating cash flow | 149.8 m | -52.5 m | -177.8 m ≈ | 191.7 m ≈ | 150.5 m | 22.2 m | -71.1 m ≈ | 209.3 m ≈ |
| Capex | 66.3 m | 75.2 m | 79.0 m ≈ | 68.9 m ≈ | 86.3 m | 56.4 m | 69.6 m ≈ | 75.7 m ≈ |
| Share repurchases | 104.4 m | 220.6 m | 33.2 m ≈ | 176.0 m ≈ | 361.8 m | 301.0 m | 168.7 m ≈ | 161.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 45 percentile of its own 40-quarter history (min 4.2, median 9.6, max 20.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 21.4 bn | 21.3 bn | 20.4 bn | 25.8 bn | 27.0 bn | 26.9 bn | 26.8 bn | 27.6 bn |
| Revenue YoY | −0.6% | −0.4% | −4.4% | +26.7% | +4.4% | −0.1% | −0.7% | +3.2% |
| Net income | 396.0 m | 450.0 m | 381.6 m | 1.4 bn | 1.4 bn | 1.0 bn | 692.2 m | 649.1 m |
| Net income YoY | −8.9% | +13.6% | −15.2% | +259.8% | +0.3% | −25.9% | −32.2% | −6.2% |
| Diluted EPS | 4.34 | 4.97 | 4.30 | 18.31 | 24.29 | 22.74 | 16.92 | 17.04 |
| Diluted EPS YoY | −2.0% | +14.5% | −13.5% | +325.8% | +32.7% | −6.4% | −25.6% | +0.7% |
| net % | 1.8% | 2.1% | 1.9% | 5.3% | 5.1% | 3.8% | 2.6% | 2.3% |
| Free cash flow | 110.2 m | 499.9 m | 1.1 bn | 1.4 bn | 1.3 bn | 313.7 m | -13.8 m | -197.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 58.6 m USD
- Financial debt
- 74.7 m USD
- Net debt
- 16.1 m USD
- Equity
- 2.3 bn USD
- Total assets
- 14.4 bn USD
- Debt / equity
- 0.03x
- Current ratio
- 0.84x
- ROE
- 27.1%
- ROA
- 4.7%
- FCF margin
- -0.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 20.4 bn | 25.8 bn | 27.0 bn | 26.9 bn | 26.8 bn | 27.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 16.8 bn | 20.9 bn | 21.7 bn | 21.8 bn | 22.0 bn | 22.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 3.6 bn | 5.0 bn | 5.3 bn | 5.1 bn | 4.8 bn | 4.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| SG&A | 2.4 bn | 2.9 bn | 3.0 bn | 3.3 bn | 3.3 bn | 3.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Operating income | 563.2 m | 1.9 bn | 2.0 bn | 1.7 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 12 Feb 2026verified |
| Interest expense | 93.7 m | 93.0 m | 134.9 m | 181.4 m | 179.7 m | 180.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 550.1 m | 1.8 bn | 1.8 bn | 1.4 bn | 916.7 m | 884.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 168.3 m | 435.1 m | 455.8 m | 330.0 m | 224.5 m | 235.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 381.6 m | 1.4 bn | 1.4 bn | 1.0 bn | 692.2 m | 649.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 4.30 | 18.31 | 24.29 | 22.74 | 16.92 | 17.04 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 88.7 m | 75.0 m | 56.7 m | 44.9 m | 40.9 m | 38.1 m | SEC (XBRL)· 12 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 569.6 m | 60.4 m | 72.6 m | 60.8 m | 59.8 m | 58.6 m | SEC (XBRL)· 12 Feb 2026verified |
| Receivables | 595.0 m | 539.9 m | 634.5 m | 762.0 m | 774.0 m | 693.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Inventories | 2.6 bn | 1.8 bn | 2.0 bn | 3.0 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Current assets | 4.2 bn | 2.8 bn | 3.1 bn | 4.3 bn | 4.7 bn | 4.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Property, plant & equipment, net | 3.1 bn | 3.4 bn | 3.6 bn | 3.8 bn | 3.8 bn | 4.0 bn | SEC (XBRL)· 12 Feb 2026verified |
| Goodwill | 1.2 bn | 1.2 bn | 1.3 bn | 1.5 bn | 1.5 bn | 1.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Intangibles (excl. goodwill) | 521.5 m | 743.5 m | 837.0 m | 927.8 m | 905.9 m | 1.0 bn | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 9.9 bn | 8.9 bn | 10.1 bn | 12.0 bn | 13.0 bn | 14.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Accounts payable | 335.2 m | 395.9 m | 327.6 m | 344.7 m | 376.6 m | 369.9 m | SEC (XBRL)· 12 Feb 2026verified |
| Short-term debt | 309.2 m | 12.2 m | 12.6 m | 462.4 m | 518.5 m | 74.7 m | SEC (XBRL)· 12 Feb 2026verified |
| Current liabilities | 4.2 bn | 3.1 bn | 3.4 bn | 5.6 bn | 6.3 bn | 5.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Equity | 3.2 bn † | 2.4 bn † | 2.0 bn † | 2.2 bn † | 2.5 bn † | 2.3 bn † | SEC (XBRL)· 12 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.2 bn | 1.6 bn | 1.7 bn | 724.0 m | 314.7 m | 111.9 m | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 156.0 m | 215.7 m | 329.0 m | 410.3 m | 328.5 m | 309.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 1.1 bn ≈ | 1.4 bn ≈ | 1.3 bn ≈ | 313.7 m ≈ | -13.8 m ≈ | -197.5 m ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | -73.7 m | -460.3 m | -479.3 m | -569.9 m | 12.3 m | -687.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | -606.7 m | -1.7 bn | -1.2 bn | -172.5 m | -300.6 m | 557.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Share repurchases | 367.2 m | 2.3 bn | 1.7 bn | 874.4 m | 460.0 m | 791.6 m | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 36 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation44
- Returns100
- Quality26
- Balance sheet46
- Growth3
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 201.75 – 456.18 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E201.75 – 456.18 (Mid 293.09)11 companies used · median multiple 14.1x · quartiles 9.7x – 21.9xABG, CASY, CPRT, GPI, KMX, LAD, MUSA, OPLN, PAG, RUSHA, SAH
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 36/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 2.6% | 53 (vs peers) | 10% |
| FCF conversion · Quality | 3.2% | 0 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 0.8% | 7 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | -11.1% | 0 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 6.4x | 76 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 8.8x | 75 (vs peers) | 16% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 0.4% | 5 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 16.9% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet46/100 · 2/3 factors with a value
- Growth3/100 · 2/2 factors with a value
- Quality26/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation44/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
AUTONATION, INC. (AN). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 27.6 bn USD in 2025; YoY growth 3.2%; net margin 2.6%; ROE 30.2%.
The estimated value range is 201.75–456.18 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 293.09 USD, the price of 183.47 USD leaves a potential of 59.7% (value / price − 1) and a margin of safety of 37.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 36/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Interest coverage: 6.4x
- P/E (TTM): 8.8x
- Shareholder yield (distributions): 16.9%
- The price is below the estimated value range
What contradicts it
- FCF conversion: 3.2%
- Revenue CAGR 3Y: 0.8%
- EPS CAGR 3Y: -11.1%
- Current ratio: 0.8x
- FCF yield: 0.4%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Retail-Auto Dealers & Gasoline Stations (SIC 5500) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CPRTCopart, Inc. | 30.2 bn | 21.0 | 16.2% | 31.8% | +0.4% | −16% / −35% |
| CASYCasey’s General Stores, Inc. | 24.9 bn | 32.5 | 20.0% | 4.1% | +10.2% | +18% / +145% |
| PAGPenske Automotive Group, Inc. | 13.9 bn | 15.5 | 15.5% | 2.8% | −0.2% | +31% / +42% |
| MUSAMurphy USA Inc. | 9.1 bn | 14.1 | 99.0% | 2.9% | −4.2% | +30% / +36% |
| KMXCarmax, Inc. | 7.8 bn | 26.9 | 4.7% | 1.1% | −1.8% | +43% / −14% |
| LADLithia Motors, Inc. | 6.8 bn | 9.1 | 11.8% | 2.1% | +4.0% | −1% / +18% |
| ANAutonation, Inc. | 5.9 bn | 8.8 | 30.2% | 2.6% | +3.2% | −6% / +31% |
| OPLNOPENLANE, Inc. | 4.5 bn | 22.8 | 13.1% | 9.2% | +8.2% | +44% / +151% |
| ABGAsbury Automotive Group, Inc. | 3.8 bn | 8.3 | 11.8% | 2.7% | +4.7% | −10% / −0% |
| GPIGroup 1 Automotive, Inc | 3.3 bn | 8.6 | 12.4% | 1.7% | +13.2% | −32% / −3% |
| NXXTNextnrg, Inc. | 427.3 m | — | — | -61.3% | +194.7% | +108% / −43% |
| VRMVroom, Inc. | 36.5 m | — | -45.0% | — | −54.2% | −66% / unavailable |
| KXINKaixin Holdings | 12.2 m | — | -307.2% | -41,788.4% | unavailable | −96% / −100% |
| CRMTAmerica’s Car-Mart, Inc. | 10.5 m | — | -43.0% | -18.6% | −7.9% | −94% / −98% |
| JZXNJiuzi Holdings Inc. | 1.4 m | — | -90.7% | -353.5% | +105.9% | −86% / −100% |
| RUSHARush Enterprises, Inc. | — | 14.0 | 11.8% | 3.7% | −4.7% | +33% / +75% |
| CVNACarvana Co. | 0 | 0.0 | 51.5% | 6.2% | +48.6% | +4% / +1,138% |
| CWHCamping World Holdings, Inc. | 0 | — | -33.2% | -1.6% | +4.4% | −52% / −74% |
| SAHSonic Automotive, Inc. | — | 10.3 | 19.4% | 1.3% | +6.5% | +2% / +25% |
1- and 3-year price returns: for AN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 113.24 Total return -38% · Per year -38% | 200.57 Total return 9% · Per year 9% | 302.62 Total return 65% · Per year 65% |
| 3 years | 101.86 Total return -44% · Per year -18% | 203.76 Total return 11% · Per year 4% | 338.70 Total return 85% · Per year 23% |
| 5 years | 91.63 Total return -50% · Per year -13% | 207.00 Total return 13% · Per year 2% | 379.07 Total return 107% · Per year 16% |
- Exit P/E± 50.94
- Net margin± 35.66
- Annual revenue growth± 30.35
- Annual dilution± 3.00
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
In brief
AutoNation is one of the largest automotive retailers in the United States, with a dealership network concentrated in major Sunbelt metropolitan markets and revenue spread across new and used vehicles, service and financing. For investors following the sector it illustrates how parts, service and finance can offset a more volatile demand for new vehicles, amid tariffs and fragile affordability, with revenue of about 13.5 billion dollars in 2025 1.
SWOT
Strengths
- A large dealership network in growing metropolitan areas gives the group scale and operational density 1.
- The large weight of service and financing in gross profit reduces dependence on the new vehicle sales cycle 1.
- The company reported record After-Sales gross profit and adjusted earnings per share growth for six consecutive quarters 3.
Weaknesses
- New vehicle gross profit fell as costs rose and volumes weakened in the second quarter of 2026 2.
- The group relies heavily on a few manufacturers, and financial trouble at any one of them could seriously affect operations 1.
- Goodwill and franchise rights impairments were recorded in 2025, showing the vulnerability of some past acquisitions 1.
Opportunities
Threats
Risks
- Dependence on a few manufacturershigh
Most new vehicles sold come from a handful of manufacturers, and financial difficulties at one of them could affect inventory, warranty payments and receivables collection 1.
- Tariffs and costshigh
Tariffs on imported vehicles and parts can raise costs and prices, and their final effect remains uncertain 12.
- Credit riskmedium
The AutoNation Finance portfolio exposes the company to losses if customers cannot repay, especially in harsher economic conditions 13.
- Asset impairmentsmedium
The goodwill and franchise rights impairments of 2025 show that the value of some acquisitions can be revised downward if performance weakens 12.
- Cyber and supplier riskmedium
A disruption of information systems or of third-party services, as happened in the CDK incident, could affect operations and reputation 1.
Investment thesis
What would need to be true (bull case)
- If the service and parts business keeps growing, the company could sustain profitability even when new vehicle sales are weak 13.
- Growth in the finance portfolio and better AutoNation Finance profitability could add a recurring stream of revenue 3.
- Share repurchases and dealership acquisitions could support earnings per share if executed at reasonable prices 13.
What would break the thesis
What to watch
- Trend in new vehicle gross profit and profit per unitQ3 2026
- Development of the AutoNation Finance portfolio and credit lossesQ4 2026
- Impact of tariffs on prices and volumes of imported vehicles2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (30 Oct 2026).
The business
AutoNation, Inc., through its subsidiaries, operates one of the largest automotive retail networks in the United States, with 323 new vehicle franchises from 245 stores as of December 31, 2025, mostly in major metropolitan markets in the Sunbelt 1. The company sells 30 different brands, and its core brands, Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis and Volkswagen (including Audi and Porsche), represented about 89% of new vehicles sold in 2025 1. Besides new and used vehicle sales, the group includes parts and service, insurance and financing through its captive finance unit AutoNation Finance 1.
In the first half of 2026 revenue fell slightly, down 1% in the second quarter, while net income rose year on year, helped in part by recoveries from the June 2024 CDK outage 23. The company closed dealership acquisitions in June 2026, repurchased shares worth 457 million dollars in the first half of the year, and reported a covenant leverage ratio of 2.8x at quarter-end 3.
Segments
Domestic, Import and Premium Luxury
These three retail segments generate almost all revenue; in 2025 Premium Luxury produced about 37% of revenue, Import 30% and Domestic 27% 1. Premium Luxury has the highest average sales per vehicle, with brands such as Mercedes-Benz and BMW, while Import is dominated by Toyota 1.
AutoNation Finance
The captive auto finance company provides indirect loans to customers buying vehicles from the group's dealerships; its loan portfolio grew to 2.7 billion dollars by June 30, 2026, with profitability improving substantially 3. The company says that expanding the portfolio depends on raising finance penetration rates in its stores 1.
Market context
Tariffs applied from 2025 on imported vehicles and parts could raise costs and prices, limit availability and reduce demand, and their final impact depends on how long and how broadly they apply 1. On the affordability side, financing costs and consumer confidence remain key factors, and electric vehicle sales fell after EV tax credits were phased out at the end of the third quarter of 2025 2.
Trends
- Moderating new vehicle profitabilityheadwind
Gross profit per vehicle sold has declined after the post-pandemic period, and the company expects this moderation to continue, partly because of tariffs and affordability concerns 1. If these pressures persist, revenue from the new vehicle line could remain under pressure.
- Growth in service and partstailwind
The After-Sales business produced record gross profit in the second quarter of 2026, supported by growth in customer-pay service and parts sales 3. This activity is less sensitive to economic cycles than new vehicle sales 1.
- Better margins in finance and insurancemixed
Gross profit per unit in finance and insurance has risen on higher realized margins on service contracts and more customer financing arranged 23. Growth in the AutoNation Finance portfolio adds revenue but also credit risk 1.
- Consolidation through acquisitions and buybacksmixed
The company buys dealerships to improve density in existing markets and repurchases shares, which lowers the number of shares outstanding 3. This capital allocation can support earnings per share, but it depends on the availability of opportunities and financing conditions 1.
Competitive position
The U.S. auto retail market is fragmented, and dealership groups compete on price, inventory and customer experience, but also with digital sales platforms 1. Manufacturers can shape competition through incentive programs, and so-called stair-step programs can hurt dealers' ability to compete 1.
AutoNation aims to widen its edge through scale, its digital network and the integration of service and financing, so that it stays competitive against other dealership groups 1. The company also mentions minority stakes in mobility and automotive digital marketplace companies, which points to interest in new sales channels 1.
- Lithia MotorsLAD
Identified in the available sources as another large U.S. auto retailer; the supplied sources do not detail its position relative to AutoNation.
- Group 1 AutomotiveGPI
An American dealership group named as a significant player in the same retail segment, with no financial details in the supplied sources.
- Penske Automotive GroupPAG
An American retailer with premium vehicle dealerships, identified as a competitor in retail, with no figures in the supplied sources.
- Sonic AutomotiveSAH
An American dealership group active across several brand segments, named as a retail competitor, with no figures in the supplied sources.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report30 Oct 2026
- Current report30 Oct 2026Results of operations · Financial statements and exhibits
- Current report16 Oct 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report15 Sept 2026Other events · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report31 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report01 May 2026
- Current report01 May 2026Results of operations · Financial statements and exhibits
- Current report29 Apr 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Proxy statement17 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / AutoNation, Inc. · 12 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / AutoNation, Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / AutoNation, Inc. · 31 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.