Q1 2026 AutoNation Inc Earnings Call Transcript
Key Points
- AutoNation Inc (AN) reported its fifth consecutive quarter of year-over-year growth in adjusted earnings per share, with an EPS of $4.69.
- The company generated $256 million of adjusted free cash flow, demonstrating strong cash conversion.
- After-Sales business delivered solid mid-single-digit growth, contributing significantly to gross profit.
- Customer Financial Services achieved a first-quarter record per unit profit, up 6% from the previous year.
- AutoNation Finance showed strong performance, generating $9 million of profit in the quarter and increasing its portfolio to $2.4 billion.
- New vehicle unit sales were down in line with the market, facing challenges from tariff-related announcements and BEV sales decline.
- Adjusted SG&A as a percentage of gross profit was higher than the targeted range, reflecting increased marketing and structural investments.
- Operating income decreased by 7% year-over-year, impacted by higher SG&A expenses.
- Used vehicle retail unit sales decreased by 5% on a same-store basis, indicating challenges in the used vehicle market.
- The company faced unfavorable self-insurance experience, including weather-related damages, impacting SG&A costs.
Hello and welcome to the AutoNation Inc. first-quarter 2026 earnings call. My name is Rob, and I'll be your operator today. (Operator Instructions)
I will now hand the conference over to Derek Fiebig, VP of Investor Relations. Please go ahead.
Thanks, Rob, and good morning, everyone. Welcome to AutoNation's first-quarter 2026 conference call. Leading our call today will be Mike Manley, our Chief Executive Officer; and Thomas Szlosek, our Chief Financial Officer. Following their remarks, we'll open up the call to questions.
Before beginning, I'd like to remind you that certain statements and information on this call, including any statements regarding our anticipated financial results and objectives constitute forward-looking statements within the meaning of the Federal Private Security Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks that may cause our actual results or performance to differ materially from such forward
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