AutoNation, Inc. has recently released its 10-K report, providing a comprehensive overview of its business operations. The company, headquartered in Fort Lauderdale, Florida, operates as one of the largest automotive retailers in the United States. As of December 31, 2025, AutoNation owned and operated 323 new vehicle franchises from 245 stores, predominantly in major metropolitan markets in the Sunbelt region. The company's offerings include a wide range of automotive products and services, such as new and used vehicles, automotive repair and maintenance, wholesale parts, collision services, and automotive finance and insurance products.
In its 10-K report, AutoNation provided a detailed analysis of its financial condition and results of operations. The company reported net income of $649.1 million and diluted earnings per share of $17.04 in 2025, compared to net income of $692.2 million and diluted earnings per share of $16.92 in 2024. Notably, the total gross profit increased by 3% during 2025, driven by increases in parts and service gross profit of 7% and finance and insurance gross profit of 8%, partially offset by a decrease in new vehicle gross profit of 14%.
AutoNation's market conditions were also discussed in the report. The company noted that full-year U.S. industry new vehicle unit sales were 16.3 million in 2025, compared to 16.0 million in 2024, and 15.6 million in 2023. The report highlighted that higher levels of manufacturer vehicle production over the past several years led to an increased supply of new vehicle inventory, resulting in the moderation of new vehicle unit profitability.
Furthermore, the report addressed the impact of the 2025 Budget Reconciliation Act on the automotive retail industry, particularly in areas of taxation, consumer incentives, and electric vehicle policies. AutoNation mentioned that while certain beneficial tax provisions of the Act may have a potential uplift on its business and the automotive retail industry, the company does not expect the impact to be material to its results of operations.
AutoNation also provided insights into its inventory management, stating that its new and used vehicle inventories are monitored based on current economic conditions and seasonal sales trends. As of December 31, 2025, the company's new vehicle inventory units were approximately 43,800, and its used vehicle inventory units were approximately 33,100. Additionally, the report discussed critical accounting estimates, including the testing for impairment of goodwill and other intangible assets, providing detailed information about the key assumptions and sensitivity analysis used in the estimation process.
As a result of these announcements, the company's shares have moved 0.26% on the market, and are now trading at a price of $214.90. Check out the company's full 10-K submission here.
