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]