AutoNation, Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance and operations. The company operates as one of the largest automotive retailers in the United States, with 322 new vehicle franchises across 244 stores, predominantly in major metropolitan markets in the Sunbelt region. AutoNation offers a wide range of automotive products and services, including new and used vehicles, automotive repair and maintenance, wholesale parts, collision services, and automotive finance and insurance products.
In the first quarter of 2025, U.S. industry retail new vehicle unit sales, including markets in which AutoNation does not compete, increased by approximately 8% compared to the first quarter of 2024. This growth was partly attributed to higher levels of manufacturer vehicle production and an increase in consumer demand, particularly following U.S. government tariff-related announcements. However, the company expressed concerns about the impact of tariffs on imported vehicles and parts, which could potentially increase costs, limit inventory availability, and reduce demand for its products and services.
During the three months ended March 31, 2025, AutoNation reported net income of $175.5 million and diluted earnings per share of $4.45, compared to net income of $190.1 million and diluted earnings per share of $4.49 during the same period in 2024. The company's total gross profit increased by 2% during the first quarter of 2025, driven by increases in finance and insurance gross profit (5%), used vehicle gross profit (12%), and parts and service gross profit (2%). However, new vehicle gross profit decreased by 11%, primarily due to a decrease in gross profit per vehicle retailed resulting from an increase in the supply and availability of new vehicle inventory.
AutoNation closely monitors its new and used vehicle inventories, with new vehicle inventory units at 39,300 as of March 31, 2025, and 38,200 as of March 31, 2024. The company also reconditions the majority of used vehicles acquired for retail sale and capitalized the related costs to the used vehicle inventory.
The 10-Q report also highlighted AutoNation's reported operating data for the first quarter of 2025, including revenue, gross profit, selling, general, and administrative expenses, depreciation and amortization, and non-operating income (expense) items. The report provides a comprehensive breakdown of the company's financial performance during the period, offering insights into its revenue per vehicle retailed, retail vehicle unit sales, and other key metrics.
Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $175.09. For the full picture, make sure to review AutoNation's 10-Q report.
