Financial Data and Key Metrics Changes - The company reported a 25% growth in adjusted EPS, with adjusted net income increasing to $191 million from $162 million a year ago, reflecting an 18% increase [11][15] - Total revenue for Q3 was $7 billion, a 7% increase year-over-year, with gross profit rising to $1.2 billion, up 5% from the previous year [13][14] - Adjusted SG&A as a percentage of gross profit was 67.4%, consistent with the previous year, while adjusted operating income increased by 9% [14][15] Business Line Data and Key Metrics Changes - Same-store sales of new vehicles increased by 4.5%, with domestic segment sales up 11% year-over-year [6][16] - Used vehicle gross profit increased by 3%, with unit sales up 4% overall, outpacing the industry [8][18] - Customer financial services gross profit reached a record high, increasing by 12% from a year ago [9][19] Market Data and Key Metrics Changes - Year-to-date light vehicle sales averaged 16.3 million units, with retail sales averaging around 13.6 million [5] - The industry inventory remains low at about 2.6 million units, significantly below the pre-pandemic norm of 4 million units [4][5] - The company reduced its BEV inventory by approximately 55% from year-end to around 1,550 units, indicating a strategic shift in inventory management [7][17] Company Strategy and Development Direction - The company is focused on capital allocation, with over $1 billion deployed year-to-date for share repurchases and acquisitions to enhance franchise density [12][25] - The strategy includes maintaining higher inventory levels for used vehicles to support sales while managing depreciation impacts [44][46] - The company aims to improve its sourcing strategy for used vehicles, leveraging trade-ins and direct consumer acquisitions [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions, noting that inventory levels are in good shape despite challenges in new vehicle sales [4][5] - The company anticipates tougher comparisons in Q4 due to higher sales figures from the previous year [5][6] - Management highlighted the importance of adapting to evolving tariff negotiations and their impact on OEM profitability and supply chains [5][6] Other Important Information - The company achieved a significant increase in aftersales revenue, with same-store revenue up 6% and gross profit up 7% [23] - The adjusted cash flow for the nine months of the year totaled $786 million, reflecting a strong operational performance [24] - The company is actively exploring M&A opportunities to add scale and density to existing markets [25][26] Q&A Session Summary Question: Can you quantify the variable gross per unit changes from Q2 to Q3? - Management noted that the decrease was primarily due to a significant increase in BEV mix and pressure on domestic combustion sales, which was corrected towards the end of the quarter [29][30] Question: Will the record level of finance and insurance per unit continue? - Management expressed confidence in the continued performance of finance and insurance, driven by value-added products and strong team contributions [33] Question: What are the trends in auto credit and consumer health? - Management reported no concerning trends in delinquencies or losses, with performance metrics aligning with expectations [40][41] Question: Update on used car business initiatives? - Management indicated that while growth is above industry levels, they are maintaining higher inventory levels to support sales, which may impact margins temporarily [42][44] Question: What is driving the gross margin expansion in service and parts? - Management attributed the expansion to increased volume and pricing, alongside effective technician hiring and training initiatives [50][52] Question: How is the company viewing competition in the used car market? - Management sees opportunities for consolidation in the fragmented used car market and is confident in their sourcing strategy to maintain inventory levels [67][70] Question: Changes in demand for luxury vehicles? - Management noted a more muted demand in the luxury space compared to last year but expects a seasonal uptick in December [74][75]

Core Viewpoint - AutoNation reported quarterly earnings of $5.01 per share, exceeding the Zacks Consensus Estimate of $4.85 per share, and showing an increase from $4.02 per share a year ago, indicating a positive earnings surprise of +3.30% [1][2] Financial Performance - The company achieved revenues of $7.04 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.63%, and up from $6.59 billion year-over-year [2] - Over the last four quarters, AutoNation has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance - AutoNation shares have increased approximately 27.4% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $5.01 on revenues of $7.11 billion, and for the current fiscal year, it is $19.72 on revenues of $27.63 billion [7] - The outlook for the automotive retail and wholesale industry is currently in the bottom 24% of Zacks industries, which may impact AutoNation's stock performance [8]

1 Third Quarter 2025 Earnings Release October 23, 2025 Forward-Looking Statements 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," " ...

Core Insights - AutoNation recorded higher third-quarter profit and sales, indicating strong performance across all major categories, including new vehicles [1] Company Performance - The company experienced growth in profit and sales during the third quarter, reflecting a positive trend in its overall business operations [1] - All major categories, particularly new vehicles, contributed to this growth, showcasing the company's robust market position [1]

Exhibit 99.1 Investor Contact: Derek Fiebig (954) 769-2227 fiebigd@autonation.com Media Contact: Lisa Rhodes Ryans (954) 769-4120 publicrelations@autonation.com AutoNation Reports Third Quarter 2025 Results FORT LAUDERDALE, Fla., (October 23, 2025) — AutoNation, Inc. (NYSE: AN) today reported third quarter 2025 revenue of $7.0 billion, an increase of 7% compared to the same period a year ago. Third quarter 2025 EPS was $5.65, compared to $4.61 a year ago, and third quarter 2025 Adjusted EPS was $5.01, compa ...

Core Insights - AutoNation, Inc. reported a third quarter 2025 revenue of $7.0 billion, marking a 7% increase year-over-year, with diluted EPS rising to $5.65, up 23% from the previous year [1][7][8] - The company experienced strong performance across various segments, particularly in After-Sales and Customer Financial Services, contributing to robust cash flow and capital deployment for share repurchases and acquisitions [2][4] Financial Performance - Revenue for Q3 2025 was $7,037.4 million, compared to $6,586.1 million in Q3 2024, reflecting a 7% increase [3] - Gross profit increased by 5% to $1,238.4 million from $1,182.8 million year-over-year [3] - Operating income rose by 6% to $372.4 million, while net income increased by 16% to $215.1 million [3] - Adjusted diluted EPS for Q3 2025 was $5.01, a 25% increase from $4.02 in Q3 2024 [3] Segment Performance - Same-store revenue reached $6.9 billion, up 6% year-over-year, driven by increased new vehicle unit sales and higher average selling prices [8] - New vehicle revenue was $3.4 billion, a 7% increase, while used vehicle revenue rose to $2.0 billion, up 5% [8] - Customer Financial Services revenue increased by 11% to $368 million, and After-Sales revenue grew by 6% to $1.2 billion [8] Capital Allocation and Liquidity - AutoNation utilized $39 million in cash for operating activities in the first nine months of 2025, with adjusted free cash flow at $786 million, representing 134% of adjusted net income [4][6] - The company repurchased 0.8 million shares for $181 million in Q3 2025, with a total of 2.8 million shares repurchased year-to-date for $523 million [5] - As of September 30, 2025, AutoNation had $1.8 billion in liquidity, including $98 million in cash and $1.7 billion available under its revolving credit facility [6] Operational Highlights - AutoNation Finance's portfolio grew to over $2 billion, enhancing profitability despite higher non-cash credit provisioning [2][8] - The company made strategic acquisitions, including an Audi and a Mercedes-Benz store in Chicago, contributing to over $500 million in annual revenues [4]

Company Overview - AutoNation, Inc. is a leading automotive retailer in the United States, operating through three main segments: Domestic, Import, and Premium Luxury, offering new and used vehicle sales, automotive repair and maintenance, and automotive finance and insurance products [1] Market Outlook - Analysts have maintained a consistent average price target of $220 for AutoNation's stock over the past year, indicating a stable view of the company's valuation and market potential [2][6] - JPMorgan analyst Rajat Gupta has increased the price target from $205 to $230, reflecting a positive outlook on the company's franchise dealer estimates, while maintaining a Neutral rating [3][6] Financial Performance - AutoNation has a strong track record of surpassing earnings expectations, which bodes well for its upcoming quarterly report, demonstrating impressive earnings surprises and a favorable financial outlook [4][6] - The company has maintained strong service revenue and effective capital returns despite uncertainties surrounding auto tariffs [4] Competitive Position - AutoNation is highlighted as a broker-adored stock, noted for its strong earnings history and strategic growth initiatives, positioning it as a strong contender in the automotive retail sector [5]

Analysts on Wall Street project that AutoNation (AN) will announce quarterly earnings of $4.85 per share in its forthcoming report, representing an increase of 20.7% year over year. Revenues are projected to reach $6.86 billion, increasing 4.1% from the same quarter last year.Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts ...

Group 1 - AutoNation (AN) is a notable stock in the Retail-Wholesale sector, currently outperforming its peers with a year-to-date return of approximately 27.1% compared to the sector average of 5.1% [4] - The Zacks Rank system indicates that AutoNation holds a Zacks Rank of 2 (Buy), reflecting improved analyst sentiment and a stronger earnings outlook, with a 5.2% increase in the consensus estimate for full-year earnings over the past 90 days [3] - AutoNation is part of the Automotive - Retail and Wholesale industry, which includes 10 companies and is currently ranked 18 in the Zacks Industry Rank, outperforming the industry's average gain of 1.2% this year [5] Group 2 - Dollar General (DG) is another strong performer in the Retail-Wholesale sector, with a year-to-date return of 34.4% and a Zacks Rank of 2 (Buy), supported by a 6.4% increase in the consensus EPS estimate over the past three months [4][5] - The Retail - Discount Stores industry, to which Dollar General belongs, is ranked 32 and has seen a gain of 3.5% this year, indicating a relatively weaker performance compared to AutoNation [6]

Core Viewpoint - AutoNation, Inc. will release its financial results for Q3 2025 on October 23, 2025, before market opening, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be announced on October 23, 2025 [1]. - A conference call and audio webcast will take place on the same day at 9:00 a.m. Eastern Time to discuss the results [1]. Group 2: Accessing the Conference Call - The conference call can be accessed via telephone at 833-470-1428 with Conference ID: 500167 or through AutoNation's investor relations website [2]. - The webcast will be available on AutoNation's website after the call and can be accessed until November 13, 2025 [2]. Group 3: Company Overview - AutoNation is one of the largest automotive retailers in the U.S., offering a wide range of new and used vehicles, financing, parts, and maintenance services [3]. - The company has raised over $45 million for cancer-related causes through DRV PNK, highlighting its commitment to community service [3].