AutoNation Posts Adjusted EPS of $5.11 Despite 25% Drop in Net Income
Key Facts
AutoNation reported revenue of $7,010.3 million for the third quarter of 2026 on October 30 and adjusted earnings per share of $5.11, while net income fell 25% to $162.3 million. Diluted EPS declined 14% to $4.87, compared with $5.65 in the same period of 2025. According to the company statement published via Nasdaq, revenue edged down from $7,037.4 million a year earlier. CEO Mike Manley said the company delivered adjusted EPS growth “for the seventh consecutive quarter.” Results came amid lower new and used vehicle sales volumes, while revenue exceeded analysts’ estimate and adjusted earnings fell short of it.
On a same-store basis, gross profit fell 5% to $1,169.8 million from $1,227.8 million in the third quarter of 2025. Retail sales of new vehicles declined 5% to 62,356 units, compared with 65,836 a year earlier. Used vehicle sales also fell 6% to 63,703 units from 67,988. The CFO said on the earnings call that lower vehicle sales volumes reduced EPS by $0.52 during the quarter. These figures show how lower unit sales weighed on the retail business alongside a decline in reported earnings.
After-sales operations and auto financing helped offset some of that pressure on EPS. The after-sales segment contributed $0.38 to EPS growth, while AutoNation Finance contributed about $0.27, according to the CFO. Share repurchases also contributed $0.64 per share to earnings growth during the quarter. Manley said after-sales performance and growth in the finance arm supported contributions from earnings and recurring cash flows. These contributions highlight sources of support for adjusted earnings at a time when retail sales of new and used vehicles declined.
For the nine months ended September 30, revenue was $20,492.2 million, down 1% from $20,702.2 million in the year-earlier period. Net income for the nine months rose 15% to $549.8 million, compared with $477.0 million. On liquidity, the company said it had $1.5 billion on September 30, including $51 million in cash and $1.4 billion available under its revolving credit facility. In September, it had increased the revolving credit facility to $2.0 billion and extended the credit agreement’s maturity to September 14, 2031. These facilities provide the company with a broader financing framework, while nine-month results showed a divergence between lower revenue and higher net income.
Quarterly revenue exceeded Investing.com’s estimate of $6.93 billion, while adjusted EPS of $5.11 came in below the estimate of $5.17. The CFO said the company was on track to generate adjusted free cash flow of $965 million for all of 2026, excluding 2025 cybersecurity insurance proceeds. The earnings conference call was scheduled for October 30 at 9:00 a.m. Eastern time, with a replay to be made available later through the investor relations website. The results published in these facts did not include a confirmed figure for the stock’s movement after the announcement. The comparison with estimates and the full-year cash flow trajectory put investor focus on the company’s performance through the rest of 2026.