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• Total Revenue: $6.7 billion, an increase of 3% year-over-year.

• Same Store New Vehicle Revenue: Increased by 10%.

• Gross Profit: $1.2 billion, up 3% from the previous year.

• Gross Profit Margin: 18.2% of revenue.

• After Sales Gross Profit Margin: Increased by 140 basis points year-over-year.

• Adjusted SG&A: 67.5% of gross profit.

• Adjusted Operating Margin: 5% of revenue.

• Adjusted Net Income: $184 million, a 3% decrease year-over-year.

• Adjusted Earnings Per Share (EPS): $4.68, up 4% from the previous year.

• New Vehicle Unit Sales: Increased by 6% total store basis, 7% same store basis.

• New Vehicle Unit Profitability: $2,803 per unit.

• Used Vehicle Gross Profit: Increased by 12%.

• Customer Financial Services (CFS) PVR: $2,703, up 3% from the previous year.

• AN Finance Originations: $460 million during the quarter.

• Share Repurchases: $225 million worth of shares at an average price of $165 per share.

• Store Acquisitions: Acquired two stores in Greater Denver, Colorado, generating approximately $220 million in revenue.

• Free Cash Flow: $237 million, with a cash flow conversion of 129% of adjusted net income.

• Leverage: 2.56 times EBITDA.

• Warning! GuruFocus has detected 4 Warning Signs with AN.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AutoNation Inc (NYSE:AN) reported strong new unit growth and expanded unit profitability in both used vehicles and customer financial services.

• The company achieved record after sales profits, with a 140 basis point margin expansion from the previous year.

• Operating cash generation was solid, allowing for capital deployment in share repurchases and accretive acquisitions.

• AutoNation Inc (NYSE:AN) increased its market share year over year and month over month in the markets it serves.

• The company's finance arm, AN Finance, crossed over to profitability ahead of expectations, with improved credit quality and reduced delinquencies.

Negative Points

• The gross profit margin of 18.2% of revenue was slightly down from the previous year.

• Adjusted net income decreased by 3% year over year, marking the smallest decline in three years but still a decrease.

• New vehicle unit profitability was down seasonally from the fourth quarter, reflecting a normal trend.

• Supply availability remains a challenge, particularly for mid and higher-priced used vehicles.

• The impact of tariffs remains a significant concern, with potential effects on new unit availability and pricing.

Q & A Highlights

Q: How did AutoNation's finance ramp impact the F&I PVR, and what flexibility do you have with the ABS launch? A: Thomas Szlosek, CFO, explained that the finance ramp had a short-term impact on CFS, roughly $150 for the quarter. They are comfortable with the capacity and availability of warehousing and are working on an ABS transaction, aiming for something north of $500 million.