Q4 2026 Copart Inc Earnings Call Transcript
Key Points
- Copart Inc (CPRT) agreed to acquire ACV, a leading digital automotive marketplace, expected to be accretive to earnings in the first full year and to create a more complete automotive marketplace.
- International segment showed strong momentum with revenue up 11.7% and units sold up 10% in Q4, and all international markets are now profitable.
- Total loss frequency reached a record 23.3% in Q2 2026, up from 22.4% last year, driven by increasing vehicle complexity and repair costs, which benefits Copart Inc (CPRT)'s salvage auction business.
- Copart Inc (CPRT) has a strong balance sheet with $5.7 billion in liquidity and no debt, providing significant flexibility for investments and future M&A.
- Noninsurance unit volume returned to growth in Q4, up 0.2%, with dealer units up 5.8% and Blue Car up nearly 20%, indicating traction in commercial and dealer initiatives.
- Global unit sales declined 2.9% in Q4, with domestic units down 5.7% and global insurance units down 4.2%, primarily due to a single customer loss and industry trends.
- Operating costs per car increased 12.7% in Q4, driven by investments in new products and services, pressuring margins.
- US insurance volumes decreased 7.5% in Q4 and 8% for the fiscal year, reflecting lower collision claim frequency and a challenging insurance market.
- Gross profit declined 5.5% in Q4 and operating income decreased 10.6%, with net income down 17.4% year-over-year.
- The ACV acquisition is expected to be breakeven in the current year and accretive only in FY28, with integration risks and potential delays in closing.
Please stand by. Good day, everyone, and welcome to the Copart Incorporated fourth quarter fiscal 2026 earnings call. Just a reminder, today's conference is being recorded. Before turning the call over to management, I will share Copart's safe harbor statement.
The company's comments today include forward-looking statements within the meaning of the federal securities laws. Including management's current views with respect to trends, opportunities, and uncertainties in the company's industry. These forward-looking statements involve substantial risks and uncertainties.
For more detail on the risks associated with the company's business, we refer you to the section titled Risk Factors in the company's annual report on Form 10-K for the year ended July 31, 2025. And each of the company's subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and the company has no obligation to update or revise any forward-looking statements. I will now turn the call over to the company's CEO and executive Chairman, Jay Adair.
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