Carmax, Inc. has reported its fourth quarter and fiscal year 2025 results, showing significant growth across various metrics. In the fourth quarter, the company achieved net revenues of $6.0 billion, representing a 6.7% increase. Retail used unit sales increased by 6.2%, reaching 182,655 units, and comparable store used unit sales increased by 5.1%. Moreover, Carmax's share of the nationwide age 0-10 year old used vehicle market remained at 3.7% in calendar year 2024.
Total gross profit reached $667.9 million, marking a 13.9% increase, driven by unit volumes and strong unit margin performance. The gross profit per retail used unit stood at $2,322, up $71 per unit, and a fourth-quarter record. Furthermore, the company bought 269,000 vehicles from consumers and dealers, marking a significant 15.3% increase from the prior year.
Carmax also witnessed an 8.2% increase in Carmax Auto Finance (CAF) income, reaching $159.3 million, driven by growth in CAF’s net interest margin percentage. The company's net earnings per diluted share of $0.58 increased by 81.3% from $0.32 a year ago.
During the fourth quarter, Carmax repurchased $98.5 million in shares of common stock and opened two new store locations, while also announcing plans for new store growth and stand-alone reconditioning/auction centers for fiscal 2026.
In terms of online transactions, which accounted for approximately 29% of net revenues, online retail sales represented 15% of retail unit sales, slightly down from 30% in the prior year's fourth quarter.
Looking at fiscal 2026, Carmax expects low-single-digit gross profit growth to lever SG&A, and the company has updated its earnings per share growth model to achieve ongoing growth in retail and wholesale unit sales and market share, with double-digit earnings per share growth for years to come.
Following these announcements, the company's shares moved -16.5%, and are now trading at a price of $66.87. If you want to know more, read the company's complete 8-K report here.
