AutoNation Q1 EPS Jumps 31% to $5.85; Revenue Dips 2% to $6.6B
AutoNation reported Q1 revenue of $6.6 billion, down 2% year-over-year, while diluted EPS rose 31% to $5.85 and adjusted EPS edged up to $4.69. Record After-Sales gross profit and Customer Financial Services unit profitability, alongside a $300 million share buyback, supported strong free cash flow.
1. First Quarter Financial Performance
In Q1 2026, AutoNation generated revenue of $6,552.1 million, a 2% decline from the prior year, and gross profit of $1,211.1 million, down 1%. Operating income fell 6% to $314.3 million, while net income increased 17% to $205.4 million, driving diluted EPS to $5.85 from $4.45 and adjusted EPS to $4.69.
2. Segment Highlights
After-Sales reported record gross profit, and Customer Financial Services achieved record unit profitability, with sequential improvements in new and used vehicle margins. Same-store new vehicle retail units sold totaled 56,316 (-9%), and used vehicle retail units reached 64,182 (-5%), offset by stronger per-unit margins.
3. Capital Allocation and Liquidity
AutoNation repurchased 1.5 million shares for $300 million in Q1 and $391 million year-to-date through April, leaving $685 million of authorization. Cash used in operations was $22 million, adjusted free cash flow was $256 million, and the AutoNation Finance portfolio grew to $2.4 billion, supported by a $749.2 million ABS at a 4.25% fixed rate and $1.6 billion of total liquidity.