Financial Data and Key Metrics Changes - Quarterly revenue was $9.7 billion, up 4.9% year-over-year, and adjusted diluted EPS was $9.50, up 17% [4][17] - Same-store revenues for the quarter increased 7.7%, driven by growth in every business line [6] - Total gross profit increased 3.2%, with total vehicle GPU at $4,109, down $216 year-over-year [6][8] Business Line Data and Key Metrics Changes - New retail revenue grew 5.5%, with units up 2.5%, while new GPU was $2,867, down $348 sequentially [6] - Used retail revenue increased by 11.8% over last year, driven by a 6.3% increase in unit growth and higher average selling prices [6][7] - After-sales revenue increased 3.9%, with gross profit rising 9.1% and margins expanding to 58.4%, up 280 basis points year-over-year [8] Market Data and Key Metrics Changes - The used vehicle performance outperformed the industry, with value segments delivering a 22.3% unit increase year-over-year [7] - In the UK, SG&A as a percentage of gross profit was high, reflecting market challenges and labor costs [9][18] Company Strategy and Development Direction - The company aims to capture market share and increase customer loyalty, focusing on high ROI used vehicles and after-sales services [5][11] - Strategic acquisitions remain a core pillar, with a target of $2 billion acquisition revenue estimate for 2025 [12][13] - The company is focused on investing where it can create the most shareholder value, prioritizing share repurchases and selective acquisitions [11][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong top-line growth across all business lines and emphasized the importance of cost control and operational efficiency [4][5] - The company is optimistic about its ability to convert momentum into share gains and sustained cost efficiency [5][20] - Management acknowledged challenges in the UK market but expressed confidence in the team's ability to respond effectively [18][27] Other Important Information - The company reported adjusted SG&A as a percentage of gross profit at 67.9%, reflecting cost discipline despite normalization of GPUs [17] - Financing operations income was $19 million in the quarter, with a net interest margin of 4.6%, up 70 basis points year-over-year [19] Q&A Session Summary Question: Discussion on EV inventory and sales - Management noted that electrified vehicles constituted 43% of total new car mix, with significant sales driven by federal incentives and manufacturer support [23][24] Question: Overview of the used market and subprime impact - Management indicated that the used car market presents opportunities, particularly in the value auto segment, which is driven by higher credit quality customers [30][31] Question: UK market performance and regulatory environment - Management discussed challenges in the UK, including labor costs and market conditions, but highlighted improvements in parts and service profitability [26][27] Question: U.S. versus UK performance comparison - Management reported strong performance in the U.S. with significant growth in used cars, while UK profitability was only slightly down year-over-year [49][50] Question: M&A opportunities and targets - Management confirmed a hard target of $2 billion in acquisitions for the year, emphasizing a disciplined approach to capital allocation [53][56]

Domestic News - The Ministry of Public Security reported that the total number of motor vehicles in China reached 460 million by the end of September 2025, with 360 million being cars and 550 million drivers, making it the largest in the world in terms of total and incremental numbers [2] - The State Administration for Market Regulation unconditionally approved several mergers and acquisitions, including Mitsubishi Motors' acquisition of GAC Mitsubishi's equity [3] - The China Semiconductor Industry Association expressed serious concerns regarding the intervention of the Dutch government in Nexperia, a subsidiary of Wingtech Technology, emphasizing support for fair business practices and opposing discriminatory measures against Chinese companies [4] - The China Automotive Power Battery Industry Innovation Alliance reported that the total production of power and other batteries in September was 151.2 GWh, a year-on-year increase of 35.4%, with cumulative production from January to September reaching 1,121.9 GWh, up 51.4% year-on-year [5] International News - The Abu Dhabi Investment Authority signed a strategic cooperation agreement with Stellantis to develop an integrated automotive ecosystem in the UAE [6] - Germany's Federal Statistical Office reported a 10.4% year-on-year increase in the number of companies filing for bankruptcy in September [7] - South Korea's semiconductor exports in September reached $16.62 billion, a year-on-year increase of 21.9% [8] - South Korea's ICT product exports in September totaled $25.43 billion, a 14% year-on-year increase, with a trade surplus of $11.65 billion [9] Corporate News - Honda reported a total of 54,544 vehicles sold in China in September 2025, with cumulative sales from January to September reaching 467,867 vehicles [10] - CATL and Dongfeng Commercial Vehicle established a new five-year strategic cooperation agreement focusing on product development and industry standards [11] - Pony.ai and WeRide received approval from the China Securities Regulatory Commission for their respective IPOs in Hong Kong [12] - JD.com announced a new car launch in collaboration with GAC and CATL, set for November 9, focusing on consumer insights and sales without direct involvement in manufacturing [13] - Bohai Automotive received approval from the Beijing State-owned Assets Supervision and Administration Commission for a major asset restructuring plan [14] - ZTE announced that its automotive-grade chip, Han域 M1, has been shipped by the end of September 2025, designed for next-generation automotive electronic architectures [15]