CarMax(KMX) - 2025 Q4 - Annual Results

Financial Performance - Net revenues for the fourth quarter reached $6.0 billion, an increase of 6.7% year-over-year[3]. - For the three months ended February 28, 2025, net sales and operating revenues increased to$ 6,003.1 million, up from $5,626.6 million in the same period of 2024, representing a growth of 6.7%[27]. - Net earnings for the three months ended February 28, 2025, were$ 89.9 million, representing a significant increase of 78.8% from $50.3 million in the same period of 2024[33]. - Net earnings for 2025 increased to$ 500,556, up from $479,204 in 2024, representing a growth of approximately 6.5%[47]. - Basic net earnings per share for the three months ended February 28, 2025, were$ 0.58, compared to $0.32 in the same period of 2024[42]. Gross Profit and Expenses - Total gross profit was$ 667.9 million, up 13.9%, with gross profit per retail used unit reaching a record $2,322, an increase of$ 71 per unit[3][9]. - Gross profit for the three months ended February 28, 2025, was $667.9 million, a 13.9% increase from$ 586.2 million in the prior year[28]. - Used vehicle gross profit per unit rose to $2,322, an increase of 8.8% compared to$ 2,251 in the same quarter of 2024[29]. - Total SG&A expenses for the three months ended February 28, 2025, were $610.5 million, a 5.1% increase from$ 580.9 million in the same quarter of 2024[30]. - SG&A expenses rose by 5.1% to $610.5 million, but as a percentage of gross profit, it decreased by 770 basis points to 91.4%[11]. CarMax Auto Finance - CarMax Auto Finance (CAF) income increased by 8.2% to$ 159.3 million, driven by growth in net interest margin percentage[12]. - CarMax Auto Finance (CAF) income for the three months ended February 28, 2025, was $159.3 million, up from$ 147.3 million in the same period of 2024, reflecting an increase of 8.6%[32]. - The weighted average contract rate for loans was 11.1% for the three months ended February 28, 2025, down from 11.5% in the same period of 2024[32]. - The net penetration rate for loans remained stable at 42.3% for both the three months ended February 28, 2025, and 2024[32]. - CarMax Auto Finance originated over $8 billion in receivables during fiscal 2025, contributing to a nearly$ 18 billion portfolio[37]. Store Expansion and Operations - Two new store locations were opened in Mays Landing, New Jersey, and Visalia, California, bringing the total to 250 stores[15]. - For fiscal 2026, the company plans to open six new store locations and four stand-alone reconditioning/auction centers, with capital expenditures expected to be approximately $575 million[16]. - CarMax has 250 store locations and over 30,000 associates, maintaining its position as the largest retailer of used autos in the U.S.[37]. Cash Flow and Investments - Net cash provided by operating activities rose to$ 624,439 in 2025, compared to $458,617 in 2024, marking an increase of about 36.2%[47]. - Capital expenditures for 2025 were$ 467,939, slightly higher than $465,307 in 2024, indicating a stable investment level[47]. - The company reported a net cash used in financing activities of$ (453,537) in 2025, compared to a net cash provided of $307,787 in 2024, indicating a shift in financing strategy[47]. - The net cash used in investing activities was$ (461,002) in 2025, slightly lower than $(466,998) in 2024, indicating a consistent investment approach[47]. Recognition and Workforce - The company has been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For®[37].