AutoNation Reports Second Quarter 2025 Results

Core Insights - AutoNation, Inc. reported second quarter 2025 revenue of $7.0 billion, an 8% increase year-over-year, while diluted EPS decreased to $2.26 from $3.20, and adjusted EPS rose to $5.46 from $3.99 [1][7][10] Financial Performance - Revenue for the second quarter of 2025 was $6,974.4 million, up from $6,480.4 million in the same period last year, reflecting an 8% increase [3][21] - Gross profit increased by 10% to $1,275.4 million from $1,163.1 million [3][21] - Operating income decreased by 21% to $217.6 million from $275.0 million [3][21] - Net income fell by 34% to $86.4 million compared to $130.2 million a year ago [3][21] - Adjusted operating income for the quarter was $369.3 million, a 16% increase from $318.5 million [4] - Adjusted net income rose by 29% to $209.2 million from $162.5 million [4] Segment Performance - Same-store revenue increased by 8% to $6.9 billion, driven by higher new vehicle unit sales and increased average selling prices [8][12] - New vehicle revenue was $3.4 billion, up 9%, while used vehicle revenue increased by 4% to $2.0 billion [8] - After-sales revenue grew by 12% to $1.2 billion, and customer financial services revenue rose by 13% to $363 million [8] - Same-store gross profit increased by 10% to $1.3 billion [8] Capital Allocation and Liquidity - Cash used in operating activities for the first half of 2025 was $230 million, with auto loans receivable net increasing by $695 million [5] - AutoNation repurchased 1.5 million shares for $254 million, with over $607 million remaining under its repurchase authorization [6] - As of June 30, 2025, AutoNation had $1.8 billion in liquidity, including $63 million in cash [9] Market Position and Strategy - The company experienced double-digit growth in customer financial services and after-sales, alongside improved new vehicle market share [2] - The successful completion of a $700 million asset-backed securitization for its auto loan portfolio at a fixed interest rate of 4.90% [9]