AutoNation(AN) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents AutoNation, Inc.'s unaudited condensed consolidated financial statements, management's discussion, and market risk disclosures ITEM 1. FINANCIAL STATEMENTS AutoNation's unaudited condensed consolidated financial statements, including balance sheets, income, equity, and cash flows, are presented with detailed notes Unaudited Condensed Consolidated Balance Sheets The company's unaudited condensed consolidated balance sheets detail assets, liabilities, and shareholders' equity at specific dates | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Total Assets | $13,571.0 | $13,001.7 | $569.3 | 4.4% | | Cash and cash equivalents | $62.9 | $59.8 | $3.1 | 5.2% | | Receivables, net | $868.2 | $1,066.3 | $(198.1) | (18.6)% | | Inventory | $3,445.6 | $3,360.0 | $85.6 | 2.5% | | Auto loans receivable, net | $1,702.4 | $1,057.1 | $645.3 | 61.0% | | Total Current Liabilities | $5,693.3 | $6,312.2 | $(618.9) | (9.8)% | | Long-term debt, net | $3,112.0 | $2,613.6 | $498.4 | 19.1% | | Non-recourse debt, net | $1,419.6 | $797.7 | $621.9 | 78.0% | | Total Shareholders' Equity | $2,469.5 | $2,457.3 | $12.2 | 0.5% | Unaudited Condensed Consolidated Statements of Income The company's unaudited condensed consolidated statements of income detail revenues, expenses, and net income for the periods presented | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------- | :--------- | | Total Revenue | $6,974.4 | $6,480.4 | $494.0 | 7.6% | | New vehicle revenue | $3,396.3 | $3,122.5 | $273.8 | 8.8% | | Used vehicle revenue | $1,985.0 | $1,911.1 | $73.9 | 3.9% | | Parts and service revenue | $1,221.1 | $1,117.1 | $104.0 | 9.3% | | Finance and insurance, net revenue | $367.7 | $324.0 | $43.7 | 13.5% | | Total Gross Profit | $1,275.4 | $1,163.1 | $112.3 | 9.7% | | Operating Income | $217.6 | $275.0 | $(57.4) | (20.9)% | | Income Before Income Taxes | $138.4 | $174.2 | $(35.8) | (20.6)% | | Net Income | $86.4 | $130.2 | $(43.8) | (33.6)% | | Basic EPS | $2.29 | $3.22 | $(0.93) | (28.9)% | | Diluted EPS | $2.26 | $3.20 | $(0.94) | (29.4)% | - Net income and diluted EPS for Q2 2025 were significantly impacted by non-cash goodwill and franchise rights impairments totaling $122.8 million after-tax[142] Unaudited Condensed Consolidated Statements of Shareholders' Equity The company's unaudited condensed consolidated statements of shareholders' equity show changes in equity components over time | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Total Shareholders' Equity | $2,469.5 | $2,457.3 | $12.2 | 0.5% | | Retained earnings | $5,588.9 | $5,331.8 | $257.1 | 4.8% | | Treasury stock, at cost | $(3,131.9) | $(2,895.4) | $(236.5) | (8.2)% | - The company repurchased $253.8 million of common stock during the six months ended June 30, 2025, compared to $350.0 million in the same period of 2024[13][78][242] Unaudited Condensed Consolidated Statements of Cash Flows The company's unaudited condensed consolidated statements of cash flows categorize cash activities into operating, investing, and financing | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------- | | Net cash provided by (used in) operating activities | $(230.3) | $234.9 | $(465.2) | | Net cash used in investing activities | $(210.5) | $(136.4) | $(74.1) | | Net cash provided by (used in) financing activities | $434.8 | $(65.7) | $500.5 | | Increase (decrease) in cash, cash equivalents, and restricted cash | $(6.0) | $32.8 | $(38.8) | - The shift in operating cash flow was primarily due to a $324.4 million increase in auto loans receivable and approximately $225 million in increased working capital requirements[262] - Financing activities were boosted by $1.3 billion in non-recourse debt borrowings (including $700.0 million in asset-backed term securitizations) and $500.0 million from 5.89% Senior Notes due 2035[15][267][268] Notes to Unaudited Condensed Consolidated Financial Statements Detailed explanatory notes to the unaudited condensed consolidated financial statements provide context and additional information 1. INTERIM FINANCIAL STATEMENTS This note describes the company's operations and the basis of presentation for interim financial statements, including new accounting standards - AutoNation operates 322 new vehicle franchises from 244 stores, 52 collision centers, 26 used vehicle stores, 4 auction operations, 3 parts distribution centers, a mobile repair business, and an auto finance company as of June 30, 2025[16] - Core new vehicle brands (Toyota, Honda, Ford, GM, BMW, Mercedes-Benz, Stellantis, Volkswagen) represented approximately 88% of new vehicle sales for the six months ended June 30, 2025[16] - New accounting standards ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) are not expected to impact consolidated financial statements but will require additional disclosures[21][22] 2. REVENUE RECOGNITION This note details the company's revenue recognition policies and disaggregates revenue by category and contract balances | Revenue Category | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | New vehicle | $3,396.3 | $3,122.5 | $6,644.4 | $6,101.8 | | Used vehicle | $1,985.0 | $1,911.1 | $3,907.4 | $3,907.2 | | Parts and service | $1,221.1 | $1,117.1 | $2,385.1 | $2,289.5 | | Finance and insurance, net | $367.7 | $324.0 | $720.2 | $658.7 | | Total Revenue | $6,974.4 | $6,480.4 | $13,664.8 | $12,966.1 | | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Receivables from contracts with customers, net | $628.7 | $774.0 | | Contract Asset (Current) | $19.6 | $20.4 | | Contract Asset (Long-Term) | $2.2 | $2.8 | | Contract Liability (Current) | $44.7 | $43.9 | | Contract Liability (Long-Term) | $74.6 | $72.9 | - Estimated future revenue from Vehicle Care Program (VCP) performance obligations is $115.0 million, with $40.4 million expected in the next 12 months[28] 3. AUTONATION FINANCE INCOME (LOSS) This note provides a breakdown of AutoNation Finance's income or loss, including interest, fees, and credit loss provisions | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Interest and fee income | $48.6 | $26.5 | $90.5 | $48.3 | | Interest expense | $(17.8) | $(8.7) | $(31.7) | $(15.7) | | Provision for credit losses | $(19.2) | $(7.7) | $(38.1) | $(17.9) | | AutoNation Finance income (loss) | $2.0 | $0.7 | $2.1 | $(4.3) | - ANF income increased due to growth in average managed receivables and improved credit quality of new loan originations, leading to decreased expected credit loss rates[216][217] 4. EARNINGS PER SHARE This note details the calculation of basic and diluted earnings per share, highlighting impacts from impairments and outages | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income (Millions) | $86.4 | $130.2 | $261.9 | $320.3 | | Basic EPS | $2.29 | $3.22 | $6.82 | $7.77 | | Diluted EPS | $2.26 | $3.20 | $6.73 | $7.72 | - Q2 2025 EPS was adversely impacted by non-cash goodwill and franchise rights impairments[34][142] - Q2 2024 EPS was negatively impacted by the CDK Global system outage, estimated at $1.55 per share[34][35] 5. RECEIVABLES, NET This note provides a breakdown of receivables, net, including contracts-in-transit, trade, and manufacturer receivables | Component | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Contracts-in-transit and vehicle receivables | $438.9 | $560.2 | $(121.3) | (21.7)% | | Trade receivables | $154.0 | $168.5 | $(14.5) | (8.6)% | | Manufacturer receivables | $218.5 | $267.1 | $(48.6) | (18.2)% | | Total Receivables, net | $868.2 | $1,066.3 | $(198.1) | (18.6)% | - Receivables from manufacturers or distributors totaled $218.5 million at June 30, 2025, representing a concentration of credit risk[118] 6. AUTO LOANS RECEIVABLE This note details auto loans receivable, including total balances, allowance for credit losses, and past due status | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Total auto loans receivable | $1,761.4 | $1,103.8 | $657.6 | 59.6% | | Auto loans receivable, net | $1,702.4 | $1,057.1 | $645.3 | 61.0% | | Allowance for expected credit losses | $78.2 | $54.8 | $23.4 | 42.7% | | Provision for credit losses (6 months) | $39.4 | $17.9 | $21.5 | 120.1% | | Write-offs (6 months) | $31.4 | $28.2 | $3.2 | 11.3% | | Recoveries (6 months) | $15.4 | $12.2 | $3.2 | 26.2% | | Past Due Status | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | 31-60 Days Past Due | $32.3 | $20.6 | | 61-90 Days Past Due | $7.6 | $5.5 | | Greater than 90 Days Past Due | $2.3 | $2.7 | | Total Past Due | $42.2 | $28.8 | | Current | $1,719.2 | $1,075.0 | | Total | $1,761.4 | $1,103.8 | - The allowance for credit losses is determined using a vintage-level statistical model incorporating historical data and a one-year forecast of U.S. disposable personal income[42] 7. INVENTORY AND VEHICLE FLOORPLAN PAYABLE This note details inventory and vehicle floorplan payable, including new and used vehicle inventory and associated financing | Component | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | New vehicles inventory | $2,330.7 | $2,341.4 | $(10.7) | (0.5)% | | Used vehicles inventory | $856.0 | $754.1 | $101.9 | 13.5% | | Total Inventory | $3,445.6 | $3,360.0 | $85.6 | 2.5% | | Vehicle floorplan payable - trade | $2,045.8 | $2,216.2 | $(170.4) | (7.7)% | | Vehicle floorplan payable - non-trade | $1,610.1 | $1,493.5 | $116.6 | 7.8% | | Total Vehicle floorplan payable | $3,655.9 | $3,709.7 | $(53.8) | (1.4)% | | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | New vehicle inventory days supply | 49 days | 67 days | | Used vehicle inventory days supply | 39 days | 34 days | - New vehicle floorplan facilities had a weighted-average interest rate of 6.0% at June 30, 2025 (down from 6.1% at Dec 31, 2024), with $3.1 billion borrowed against a $4.7 billion capacity[50] 8. GOODWILL AND INTANGIBLE ASSETS, NET This note details goodwill and intangible assets, net, including impairment charges for goodwill and franchise rights | Component | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Goodwill | $1,385.5 | $1,452.9 | $(67.4) | (4.6)% | | Franchise rights - indefinite-lived | $851.5 | $861.2 | $(9.7) | (1.1)% | | Other intangible assets, net | $892.8 | $905.9 | $(13.1) | (1.4)% | - A non-cash goodwill impairment charge of $65.3 million was recorded for the Mobile Service reporting unit due to its fair value being less than its carrying value, reflecting reduced forecasted cash flows and growth rates[54][96] - Non-cash franchise rights impairment charges of $71.7 million were recorded for nine stores, primarily Domestic franchises, due to underperformance relative to expectations[56][100] 9. DEBT This note provides a breakdown of the company's debt, including long-term, non-recourse, and commercial paper outstanding | Debt Type | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :--------- | | Long-term debt, net of current maturities | $3,112.0 | $2,613.6 | $498.4 | 19.1% | | Non-recourse debt, net of current portion | $1,419.6 | $797.7 | $621.9 | 78.0% | | Commercial paper outstanding | $130.0 | $630.0 | $(500.0) | (79.4)% | - Issued $500.0 million aggregate principal amount of 5.89% Senior Notes due 2035 on February 24, 2025[59][249] - Issued $700.0 million in non-recourse notes payable related to asset-backed term securitizations in May 2025[73][253] 10. INCOME TAXES This note details the company's income tax provision and effective income tax rates, highlighting the impact of non-deductible charges | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Income tax provision (Millions) | $52.0 | $44.0 | $110.5 | $107.2 | | Effective income tax rate | 37.6% | 25.3% | 29.7% | 25.1% | - The higher effective tax rate in 2025 reflects the non-deductible goodwill impairment charge recorded in the second quarter[75][236] 11. SHAREHOLDERS' EQUITY This note details changes in shareholders' equity, including common stock repurchases and remaining authorization | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Shares repurchased (millions) | 0.2 | 2.0 | 1.5 | 2.2 | | Aggregate purchase price (Millions) | $29.0 | $311.3 | $253.8 | $350.0 | | Average purchase price per share | $157.57 | $159.52 | $164.07 | $159.39 | - $607.0 million remained available under the stock repurchase limit as of June 30, 2025[78][243] 12. ACQUISITIONS AND DIVESTITURES This note details business acquisitions and divestitures, including cash paid for new store purchases - Purchased one Domestic and one Import store during the six months ended June 30, 2025[80][245] | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Cash paid for business acquisitions, net | $(69.6) | $0.0 | 13. CASH FLOW INFORMATION This note provides supplemental cash flow information, including non-cash activities and interest/income tax payments | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Cash and cash equivalents | $62.9 | $59.8 | | Restricted cash | $34.5 | $43.6 | | Total cash, cash equivalents, and restricted cash | $97.4 | $103.4 | | Non-Cash Activity (6 Months) | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :-------------- | :-------------- | | Operating lease liabilities | $85.2 | $35.7 | | Finance lease liabilities | $33.6 | $16.0 | - Interest payments (net) were $167.3 million and income tax payments (net) were $190.9 million for the six months ended June 30, 2025[86] 14. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS This note details financial instruments and fair value measurements, including debt, equity investments, and asset impairments | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Fixed rate long-term debt (carrying value) | $3,279.0 | $2,782.1 | | Fixed rate long-term debt (fair value) | $3,156.2 | $2,578.6 | | Equity investments with readily determinable fair values | $10.2 | $20.0 | | Equity investments without readily determinable fair values | $50.3 | $49.8 | | Asset Impairment (6 Months Ended June 30, 2025) | Fair Value (Millions) | Gain/(Loss) (Millions) | | :-------------------------------- | :-------------------- | :--------------------- | | Goodwill | $75.2 | $(65.3) | | Franchise rights | $42.7 | $(71.7) | | Long-lived assets held and used | $13.5 | $(3.2) | | Long-lived assets held for sale | $30.4 | $(2.4) | - Unrealized losses of $9.8 million were recognized on equity securities for the six months ended June 30, 2025[91] 15. COMMITMENTS AND CONTINGENCIES This note outlines the company's commitments and contingencies, including legal proceedings and insurance recoveries - No material adverse effect is expected from legal proceedings, and accruals for loss contingencies are reviewed quarterly[109] - Received $10 million in cyber insurance recoveries in July 2025 related to the CDK outage, with expectations for additional recoveries[110] - Estimated lessee rental payment obligations for assigned leases range from 2027 to 2034, totaling approximately $4 million at June 30, 2025[112] 16. BUSINESS AND CREDIT CONCENTRATIONS This note details business and credit concentrations, including geographic sales, brand reliance, and third-party IT provider risks - Approximately 65% of retail new vehicle unit sales for the six months ended June 30, 2025, were generated in Florida, California, and Texas[115] - Core new vehicle brands (Toyota, Honda, Ford, GM, BMW, Mercedes-Benz, Stellantis, Volkswagen) represented approximately 88% of new vehicle sales, indicating a concentration of risk[116] - The company is subject to concentration risk from third-party IT service providers, such as the dealer management system provider (CDK Global)[117] 17. SEGMENT INFORMATION This note provides financial information by reportable segment, including Domestic, Import, Premium Luxury, and AutoNation Finance - Reportable segments are Domestic, Import, Premium Luxury, and AutoNation Finance[119] - "Corporate and other" includes non-franchised businesses and unallocated corporate overhead[120] | Segment (3 Months Ended June 30) | Revenue (Millions) | Segment Income (Millions) | | :--------------------------------------- | :----------------- | :------------------------ | | Domestic | $1,920.5 | $92.0 | | Import | $2,148.3 | $133.4 | | Premium Luxury | $2,555.8 | $180.1 | | Total Franchised Dealerships | $6,624.6 | $405.5 | | AutoNation Finance income (loss) | N/A | $2.0 | | Corporate and other | $349.8 | $(235.2) | | Total consolidated revenue / Operating income | $6,974.4 | $217.6 | | Segment (6 Months Ended June 30, 2025) | Revenue (Millions) | Segment Income (Millions) | | :--------------------------------------- | :----------------- | :------------------------ | | Domestic | $3,637.9 | $161.0 | | Import | $4,195.6 | $259.6 | | Premium Luxury | $5,132.3 | $358.8 | | Total Franchised Dealerships | $12,965.8 | $779.4 | | AutoNation Finance income (loss) | N/A | $2.1 | | Corporate and other | $699.0 | $(319.7) | | Total consolidated revenue / Operating income | $13,664.8 | $553.6 | ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's discussion and analysis covers AutoNation's financial performance, market conditions, operational results, inventory, accounting estimates, and liquidity Overview This section provides an overview of AutoNation's business operations and the contribution of various revenue sources to total revenue and gross profit - AutoNation operates 322 new vehicle franchises, 52 collision centers, 26 used vehicle stores, 4 auction operations, 3 parts distribution centers, a mobile repair business, and an auto finance company[130] | Revenue Source (6 Months Ended June 30, 2025) | % of Total Revenue | % of Total Gross Profit | | :-------------------------------------------- | :----------------- | :---------------------- | | New vehicle sales | 49% | 14% | | Used vehicle sales | 29% | 10% | | Parts and service | 17% | 47% | | Finance and insurance | 5% | 29% | Market Conditions This section discusses U.S. industry retail new vehicle sales trends, profitability expectations, and the impact of tax provisions and tariffs - U.S. industry retail new vehicle unit sales increased approximately 5% in Q2 2025 compared to Q2 2024, due to higher manufacturer production and sustained consumer demand[134] - New vehicle unit profitability is expected to continue moderating throughout 2025, potentially impacted by recently announced tariffs[135][137] - The 2025 Budget Reconciliation Act provides beneficial tax provisions for dealerships and new car buyers but creates uncertainty in the EV market due to accelerated phasing out of EV tax credits[138] Results of Operations This section details the company's financial results, including net income, diluted EPS, total gross profit, and SG&A expenses, highlighting impairment impacts | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------- | :--------- | | Net Income | $86.4 | $130.2 | $(43.8) | (33.6)% | | Diluted EPS | $2.26 | $3.20 | $(0.94) | (29.4)% | | Total Gross Profit | $1,275.4 | $1,163.1 | $112.3 | 9.7% | | Parts and service gross profit | N/A | N/A | $62.0 | 11.6% | | Finance and insurance gross profit | N/A | N/A | $43.7 | 13.5% | | Used vehicle gross profit | N/A | N/A | $14.0 | 12.6% | | New vehicle gross profit | N/A | N/A | $(7.0) | (3.7)% | - Net income was adversely impacted by $122.8 million after-tax in non-cash goodwill and franchise rights impairments[142] - SG&A expenses increased due to performance-driven compensation, partially offset by $43 million in one-time compensation paid in the prior year due to the CDK outage[141][224] Inventory Management This section details the company's inventory levels for new and used vehicles, including days supply and cumulative write-downs | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | New vehicle inventory units | 42,600 | 47,000 | | New vehicle inventory days supply | 49 days | 67 days | | Used vehicle inventory days supply | 39 days | 34 days | | Inventory Type | Cumulative Write-downs (Millions) at June 30, 2025 | Cumulative Write-downs (Millions) at December 31, 2024 | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | New vehicle | $1.0 | $2.0 | | Used vehicle | $7.1 | $7.8 | | Parts, accessories, and other | $9.5 | $8.3 | Critical Accounting Estimates This section discusses critical accounting estimates, focusing on goodwill and other intangible assets, including impairment methodologies and impacts Goodwill This section details the goodwill impairment charge for the Mobile Service reporting unit, reflecting reduced forecasted cash flows and growth rates - A non-cash goodwill impairment charge of $65.3 million was recorded for the Mobile Service reporting unit in Q2 2025, reflecting updated expectations of performance and reduced forecasted cash flows[149][96] - A 20% decrease in revenue growth rates for the Mobile Service reporting unit would have resulted in an additional $30 million goodwill impairment charge[150] - Goodwill balances at June 30, 2025: Domestic ($222.0M), Import ($523.2M), Premium Luxury ($482.1M), Mobile Service ($75.2M), AutoNation Finance ($78.4M), Collision Center ($4.6M)[151] Other Intangible Assets This section details impairment charges for franchise rights, primarily for Domestic franchises, due to underperformance relative to expectations - Non-cash franchise rights impairment charges of $71.7 million were recorded for nine stores (primarily Domestic franchises) in Q2 2025, reducing their carrying value to estimated fair values due to underperformance[153][100] - A hypothetical 10% lower fair value for franchise rights would have resulted in an incremental impairment charge of approximately $7 million[154] - As of June 30, 2025, the company had 76 stores with franchise rights totaling $851.5 million[155] Reported Operating Data This section presents key reported operating data, including total revenue, gross profit, SG&A expenses, operating income, and PVR metrics | Metric (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total Revenue | $6,974.4 | $6,480.4 | $494.0 | 7.6% | | Total Gross Profit | $1,275.4 | $1,163.1 | $112.3 | 9.7% | | Selling, general, and administrative expenses | $854.7 | $825.8 | $(28.9) | (3.5)% | | Operating income | $217.6 | $275.0 | $(57.4) | (20.9)% | | PVR Metric (3 Months Ended June 30) | 2025 | 2024 | Change | % Change | | :------------------------------------ | :----- | :----- | :------- | :------- | | New vehicle gross profit PVR | $2,785 | $3,108 | $(323) | (10.4)% | | Used vehicle gross profit PVR | $1,622 | $1,638 | $(16) | (1.0)% | | Finance and insurance gross profit PVR | $2,712 | $2,556 | $156 | 6.1% | | Revenue Mix (3 Months Ended June 30, 2025) | % of Total Revenue | % of Total Gross Profit | | :----------------------------------------- | :----------------- | :---------------------- | | New vehicle | 48.7% | 14.4% | | Used vehicle | 28.5% | 9.8% | | Parts and service | 17.5% | 46.9% | | Finance and insurance, net | 5.3% | 28.8% | Same Store Operating Data This section presents same-store operating data, including total revenue, gross profit, and retail unit sales for new and used vehicles, along with PVR metrics | Metric (Same Store, 3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total Revenue | $6,904.1 | $6,383.4 | $520.7 | 8.2% | | Total Gross Profit | $1,263.4 | $1,145.8 | $117.6 | 10.3% | | New vehicle retail unit sales | 65,334 | 60,608 | 4,726 | 7.8% | | Used vehicle retail unit sales | 68,398 | 64,364 | 4,034 | 6.3% | | PVR Metric (Same Store, 3 Months Ended June 30) | 2025 | 2024 | Change | % Change | | :---------------------------------------------- | :----- | :----- | :------- | :------- | | New vehicle gross profit PVR | $2,795 | $3,113 | $(318) | (10.2)% | | Used vehicle gross profit PVR | $1,627 | $1,642 | $(15) | (0.9)% | | Finance and insurance gross profit PVR | $2,711 | $2,561 | $150 | 5.9% | New Vehicle This section details new vehicle performance, including revenue, gross profit, retail unit sales, and PVR, highlighting inventory and market impacts | Metric (Same Store, 3 Months Ended June 30) | 2025 | 2024 | Change | % Change | | :------------------------------------------ | :----- | :----- | :------- | :------- | | Revenue (Millions) | $3,372.0 | $3,088.7 | $283.3 | 9.2% | | Gross profit (Millions) | $182.6 | $188.7 | $(6.1) | (3.2)% | | Retail vehicle unit sales | 65,334 | 60,608 | 4,726 | 7.8% | | Revenue per vehicle retailed | $51,612 | $50,962 | $650 | 1.3% | | Gross profit per vehicle retailed | $2,795 | $3,113 | $(318) | (10.2)% | - New vehicle unit volume increased due to better marketing/sales, increased inventory, manufacturer incentives, and recovery from the CDK outage[164] - New vehicle gross profit PVR decreased due to increased inventory supply leading to moderation of margins[166] New Vehicle Inventory Carrying Expense This section details net new vehicle inventory carrying expense, including floorplan assistance and interest expense, and factors influencing changes | Metric (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | | :-------------------------------- | :-------------- | :-------------- | :---------------- | | Floorplan assistance | $34.7 | $31.6 | $3.1 | | New vehicle floorplan interest expense | $(43.6) | $(52.3) | $8.7 | | Net new vehicle inventory carrying expense | $(8.9) | $(20.7) | $11.8 | - Net new vehicle inventory carrying expense decreased due to lower average interest rates and floorplan balances, and increased floorplan assistance from higher new vehicle sales[172][173] Used Vehicle This section details used vehicle performance, including retail and wholesale revenue, gross profit, and retail unit sales, highlighting market shifts | Metric (Same Store, 3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Retail revenue | $1,815.2 | $1,717.5 | $97.7 | 5.7% | | Wholesale revenue | $138.3 | $164.9 | $(26.6) | (16.1)% | | Total revenue | $1,953.5 | $1,882.4 | $71.1 | 3.8% | | Retail gross profit | $111.3 | $105.7 | $5.6 | 5.3% | | Wholesale gross profit | $12.4 | $4.6 | $7.8 | N/A | | Retail vehicle unit sales | 68,398 | 64,364 | 4,034 | 6.3% | | Gross profit per vehicle retailed | $1,627 | $1,642 | $(15) | (0.9)% | - Retail used vehicle unit volume increased, recovering from the CDK outage impact in the prior year[175] - Wholesale used vehicle revenue decreased due to a shift to lower-value used vehicles[175][177] Parts and Service This section details parts and service revenue and gross profit, highlighting growth drivers such as repair order volume and technician headcount | Metric (Same Store, 3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Revenue | $1,211.9 | $1,086.7 | $125.2 | 11.5% | | Gross Profit | $594.4 | $526.2 | $68.2 | 13.0% | | Gross profit as a percentage of revenue | 49.0% | 48.4% | 0.6% | N/A | - Revenue increases were primarily from customer-pay service ($40.2M), warranty service ($38.2M), and vehicle preparation ($33.3M)[181] - Growth was driven by increased repair order volume (partially due to recovery from CDK outage), higher technician headcount, and improved efficiency[183] Finance and Insurance This section details finance and insurance revenue and gross profit, highlighting growth drivers such as vehicle unit volume and product penetration | Metric (Same Store, 3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Revenue and gross profit | $362.5 | $320.0 | $42.5 | 13.3% | | Gross profit per vehicle retailed | $2,711 | $2,561 | $150 | 5.9% | - Growth was driven by increases in vehicle unit volume, higher realized margins on vehicle service contracts, and higher product penetration[189] - Expected shift in income from arranging customer financing to AutoNation Finance as the captive finance business grows[188] Segment Results This section provides a breakdown of financial results by reportable segment, including Domestic, Import, Premium Luxury, and Corporate and other | Segment (3 Months Ended June 30) | Revenue (Millions) | Segment Income (Millions) | % Change in Segment Income | | :------------------------------- | :----------------- | :------------------------ | :------------------------- | | Domestic | $1,920.5 | $92.0 | 82.9% | | Import | $2,148.3 | $133.4 | 23.3% | | Premium Luxury | $2,555.8 | $180.1 | 26.9% | | Corporate and other | $349.8 | $(235.2) | (194.0)% | - Corporate and other segment income (loss) was significantly impacted by goodwill and franchise rights impairments[192] Domestic This section details the Domestic segment's revenue, segment income, new vehicle revenue, and retail unit sales, highlighting growth drivers | Metric (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total Revenue | $1,920.5 | $1,739.4 | $181.1 | 10.4% | | Segment income | $92.0 | $50.3 | $41.7 | 82.9% | | New vehicle revenue | $985.1 | $841.9 | $143.2 | 17.0% | | New vehicle retail unit sales | 19,354 | 16,583 | 2,771 | 16.7% | - Domestic revenue increased primarily due to a 16.7% increase in new vehicle unit volume, contributing to market share growth and recovery from the CDK outage[195] - Segment income growth was largely driven by a 22.4% increase in finance and insurance gross profit, benefiting from higher vehicle unit volume and a $289 increase in F&I gross profit PVR[194][196] Import This section details the Import segment's revenue, segment income, new vehicle revenue, and retail unit sales, highlighting growth drivers | Metric (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total Revenue | $2,148.3 | $2,018.8 | $129.5 | 6.4% | | Segment income | $133.4 | $108.2 | $25.2 | 23.3% | | New vehicle revenue | $1,129.6 | $1,067.3 | $62.3 | 5.8% | | New vehicle retail unit sales | 29,748 | 28,729 | 1,019 | 3.5% | - Import revenue increased due to higher new vehicle average selling prices (PVR up $821) and increased new vehicle unit volume, also benefiting from recovery from the CDK outage[201] - Segment income growth was primarily from a 19.5% increase in parts and service gross profit and a 7.4% increase in finance and insurance gross profit[200][202] Premium Luxury This section details the Premium Luxury segment's revenue, segment income, new vehicle revenue, and retail unit sales, highlighting growth drivers | Metric (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Total Revenue | $2,555.8 | $2,398.4 | $157.4 | 6.6% | | Segment income | $180.1 | $141.9 | $38.2 | 26.9% | | New vehicle revenue | $1,281.6 | $1,213.3 | $68.3 | 5.6% | | New vehicle retail unit sales | 16,745 | 15,956 | 789 | 4.9% | - Premium Luxury revenue increased primarily due to a 4.9% increase in new vehicle unit volume and a 5.0% increase in used vehicle revenue, benefiting from market share growth and recovery from the CDK outage[206] - Segment income growth was driven by a 9.7% increase in parts and service gross profit and a 14.4% increase in finance and insurance gross profit, with F&I PVR up $234[205][207] AutoNation Finance This section details AutoNation Finance's income, loan originations, vehicle units financed, penetration rate, and managed receivables | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | AutoNation Finance income (loss) | $2.0 | $0.7 | $2.1 | $(4.3) | | Loans originated | $464.4 | $234.3 | $924.8 | $395.5 | | Vehicle units financed | 13,514 | 7,259 | 26,762 | 12,354 | | Penetration rate | 10.0% | 5.7% | 10.1% | 4.8% | | Total average managed receivables | $1,613.6 | $633.4 | $1,440.4 | $563.9 | - ANF income benefited from decreased expected credit loss rates due to improved credit quality of new loan originations and the sale of third-party receivables[217][220] - ANF continues to realize operational efficiencies as the portfolio scales, reducing direct expenses as a percentage of the managed portfolio[218][221] Selling, General, and Administrative Expenses This section details selling, general, and administrative expenses, including compensation, advertising, and overhead, and their impact on gross profit | Component (3 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | Change (Millions) | % Change | | :--------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Compensation | $569.2 | $537.0 | $(32.2) | (6.0)% | | Advertising | $65.5 | $66.2 | $0.7 | 1.1% | | Store and corporate overhead | $220.0 | $222.6 | $2.6 | 1.2% | | Total SG&A | $854.7 | $825.8 | $(28.9) | (3.5)% | | SG&A as % of Total Gross Profit (3 Months Ended June 30) | 2025 | 2024 | Change (bps) | | :------------------------------------------------------- | :--- | :--- | :----------- | | Total | 67.0% | 71.0% | (400) bps | - Compensation expense increased due to performance-driven compensation and deferred compensation obligations, partially offset by $43 million in one-time compensation paid in Q2 2024 due to the CDK outage[224] Non-Operating Income (Expense) This section details non-operating income and expenses, including floorplan interest, other interest, other income/loss, and income tax provision Floorplan Interest Expense This section details floorplan interest expense, highlighting the impact of lower average interest rates and vehicle floorplan balances | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------- | | Floorplan interest expense | $45.3 | $53.9 | $(8.6) | - Decrease in floorplan interest expense was due to lower average interest rates and lower average vehicle floorplan balances[228][229] Interest Expense This section details other interest expense, noting its relative flatness in the quarter and factors influencing changes over six months | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------- | | Other interest expense | $46.2 | $46.8 | $(0.6) | - Other interest expense was relatively flat in Q2 2025 compared to Q2 2024[231] - For the six months, it decreased by $2.9 million due to lower average debt balances, partially offset by higher interest rates[231][232] Other Income (Loss), Net This section details other income (loss), net, including gains from COLI and unrealized gains/losses on equity investments | Metric | 3 Months Ended June 30, 2025 (Millions) | 3 Months Ended June 30, 2024 (Millions) | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Other income (loss), net | $12.3 | $(0.1) | $(0.9) | $6.9 | | Net gains from COLI | $10.4 | $0.4 | $8.5 | $7.7 | | Unrealized gains (losses) on equity investments | $1.7 | $(1.4) | $(9.8) | $(1.8) | - Gains and losses related to COLI are substantially offset by corresponding changes in deferred compensation obligations (reflected in SG&A)[233] Income Tax Provision This section details the income tax provision and effective income tax rate, highlighting the impact of non-deductible goodwill impairment | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Effective income tax rate | 37.6% | 25.3% | 29.7% | 25.1% | - The higher effective tax rate in 2025 reflects the non-deductible goodwill impairment charge recorded in the second quarter[236] Liquidity and Capital Resources This section discusses AutoNation's liquidity and capital resources, including available liquidity, capital allocation, share repurchases, and debt Available Liquidity Resources This section details available liquidity resources, including cash and cash equivalents, revolving credit facility, and unmortgaged properties | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Cash and cash equivalents | $62.9 | $59.8 | | Revolving credit facility (available) | $1,899.2 | $1,899.2 | - The company has a $1.9 billion revolving credit facility with no outstanding borrowings and $0.8 million in letters of credit at June 30, 2025[60][238] - Owns properties with a net book value of $2.8 billion at June 30, 2025, none of which are mortgaged[240] Capital Allocation This section outlines the company's capital allocation strategy, focusing on long-term value growth through investments, acquisitions, and repurchases - Capital allocation strategy focuses on growing long-term value per share through investments in existing/new facilities, strategic/technology initiatives, opportunistic acquisitions, and share/debt repurchases[241] Share Repurchases This section details common stock repurchase activity, including shares repurchased, aggregate purchase price, and remaining authorization | Metric (6 Months Ended June 30) | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Shares repurchased (millions) | 1.5 | 2.2 | | Aggregate purchase price (Millions) | $253.8 | $350.0 | | Average purchase price per share | $164.07 | $159.39 | - $607.0 million remained available under the stock repurchase limit as of June 30, 2025[243] Capital Expenditures This section details capital expenditures, specifically purchases of property and equipment for the periods presented | Metric (6 Months Ended June 30) | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :-------------- | :-------------- | | Purchases of property and equipment | $154.2 | $181.2 | Acquisitions and Divestitures This section details business acquisitions and divestitures, including new store purchases and cash paid for acquisitions - Purchased one Domestic and one Import store during the six months ended June 30, 2025, with cash paid for business acquisitions, net, of $69.6 million[245][246] - No stores were divested[245][246] Debt This section details the company's debt structure, including long-term, non-recourse, and commercial paper, and recent issuances | Debt Type | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Long-term debt, net of current maturities | $3,112.0 | $2,613.6 | | Non-recourse debt, net of current portion | $1,419.6 | $797.7 | | Commercial paper outstanding | $130.0 | $630.0 | - Issued $500.0 million of 5.89% Senior Notes due 2035 and $700.0 million in non-recourse notes payable related to asset-backed term securitizations in Q2 2025[249][253] Restrictions and Covenants This section confirms the company's compliance with debt covenants, including leverage and interest coverage ratios - The company was in compliance with all debt covenants as of June 30, 2025[258] | Covenant | Requirement | Actual (June 30, 2025) | | :-------------------- | :---------- | :--------------------- | | Leverage ratio | ≤ 3.75x | 2.33x | | Interest coverage ratio | ≥ 3.00x | 4.63x | Vehicle Floorplan Payable This section details vehicle floorplan payable, distinguishing between trade and non-trade components | Component | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Vehicle floorplan payable - trade | $2,045.8 | $2,216.2 | | Vehicle floorplan payable - non-trade | $1,610.1 | $1,493.5 | | Total Vehicle floorplan payable | $3,655.9 | $3,709.7 | Cash Flows This section provides a detailed breakdown of cash flows from operating, investing, and financing activities Cash Flows from Operating Activities This section details net cash provided by or used in operating activities, highlighting the impact of auto loans receivable and working capital | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash provided by (used in) operating activities | $(230.3) | $234.9 | - Shift to net cash used in operating activities was primarily due to a $324.4 million increase in auto loans receivable and approximately $225 million in increased working capital requirements[262] Cash Flows from Investing Activities This section details net cash used in investing activities, highlighting increased cash for acquisitions and decreased collections on auto loans | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash used in investing activities | $(210.5) | $(136.4) | - Increased cash used in investing activities due to a $69.6 million increase in cash for acquisitions and a $35.2 million decrease in collections on auto loans receivable acquired through third-party dealers[265] Cash Flows from Financing Activities This section details net cash provided by or used in financing activities, highlighting debt borrowings and stock repurchases | Metric | 6 Months Ended June 30, 2025 (Millions) | 6 Months Ended June 30, 2024 (Millions) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash provided by (used in) financing activities | $434.8 | $(65.7) | - Net cash provided by financing activities was driven by $1.3 billion in non-recourse debt borrowings (including $700.0 million in term securitizations) and $500.0 million from Senior Notes issuance, partially offset by $253.8 million in common stock repurchases[267][268][269] Forward-Looking Statements This section outlines factors that could impact future results, including economic conditions, dependence on manufacturers, and strategic initiative risks - Business is sensitive to economic conditions (unemployment, consumer confidence, fuel prices, interest rates, tariffs) and dependent on new/used vehicle sales levels and gross profit margins[270][271] - Risks include dependence on vehicle manufacturers, success of strategic initiatives (AutoNation Finance, Mobile Service), legal/regulatory proceedings, cybersecurity threats, debt covenants, interest rate risk, and goodwill/intangible asset impairment[271] Additional Information This section lists channels used by AutoNation to disseminate material financial information to the public - AutoNation uses its company website (www.autonation.com), investor relations website (investors.autonation.com), SEC filings, press releases, public conference calls, webcasts, and X feed (www.x.com/autonation) to disseminate material financial information[273] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK This section details AutoNation's exposure to market risks, primarily interest rate risk and equity price risk, quantifying potential impacts Interest Rate Risk This section details the company's exposure to interest rate risk, quantifying the impact of rate changes on variable-rate debt | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Variable rate vehicle floorplan payable | $3,700.0 | $3,700.0 | | Commercial paper outstanding | $130.0 | $630.0 | | Fixed rate senior unsecured notes | $3,300.0 | $2,800.0 | - A 100 basis point change in interest rates would result in an approximate change to annual floorplan interest expense of $36.6 million and commercial paper interest expense of $1.3 million at June 30, 2025[276][277] - All auto loans receivable were fixed-rate, funded primarily through variable- and fixed-rate non-recourse debt[279] Equity Price Risk This section details the company's exposure to equity price risk, quantifying the potential impact of changes in equity investment values | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | | Equity investments with readily determinable fair values | $10.2 | $20.0 | | Equity investments without readily determinable fair values | $50.3 | $49.8 | - A hypothetical 10% change in equity prices would result in an approximate $1.0 million change for readily determinable fair value investments and $5.0 million for those without[280] ITEM 4. CONTROLS AND PROCEDURES This section confirms the effectiveness of AutoNation's disclosure controls and procedures and reports no material changes in internal control over financial reporting Evaluation of Disclosure Controls and Procedures This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[281] Changes in Internal Control over Financial Reporting This section reports no material changes in internal control over financial reporting during the last fiscal quarter - No material changes in internal control over financial reporting occurred during the last fiscal quarter[282] PART II. OTHER INFORMATION This section provides additional information, including risk factors, equity security sales, other disclosures, and exhibits ITEM 1A. RISK FACTORS This section refers readers to comprehensive risk factors detailed in the company's most recent Annual and Quarterly Reports - Readers should refer to the risk factors in the Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025[284] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS This section details common stock repurchase activity during the quarter and the remaining authorization under the repurchase program | Period (3 Months Ended June 30, 2025) | Total Number of Shares Purchased | Avg. Price Paid Per Share | Approximate Dollar Value of Shares That May Yet Be Purchased (Millions) | | :------------------------------------ | :------------------------------- | :------------------------ | :-------------------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | 183,982 | $157.57 | $607.0 | | May 1, 2025 - May 31, 2025 | — | $— | $607.0 | | June 1, 2025 - June 30, 2025 | — | $— | $607.0 | | Total | 183,982 | N/A | N/A | - The most recent stock repurchase authorization was for an additional $1.0 billion on April 26, 2024, with no expiration date[286] ITEM 5. OTHER INFORMATION This section confirms no director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025[287] ITEM 6. EXHIBITS This section lists all exhibits filed as part of the Form 10-Q, including required certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL documents - Includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (Exhibits 101, 104)[288] SIGNATURE This section contains the official signature block, confirming the report was duly authorized and signed on behalf of AutoNation, Inc. by its Senior Vice President and Chief Accounting Officer - The report was signed by Kimberly R. Dees, Senior Vice President and Chief Accounting Officer, on July 25, 2025[292]