AutoNation (NYSE: AN) reported better-than-expected first-quarter 2025 results, driven by solid growth in new vehicle sales and improved profitability in its used car segment.
Shares initially fell 5% as investors weighed the broader implications of tariff-related volatility and mixed performance metrics. However, they later rebounded to close up 1% as strong earnings ultimately reassured the market.
The auto retail giant reported earnings per share of $4.45, topping Street estimates by $0.18. Revenue reached $6.69 billion, beating forecasts of $6.51 billion. Same-store revenue rose 4% YoY, driven by a 10% surge in new vehicle sales.
New vehicle sales showed continued strength, with same-store unit growth of 7% compared to the first quarter of 2024. Sales across all vehicle segments rose partly due to increased consumer demand following tariff-related announcements.
In the used vehicle segment, retail unit volume dipped slightly to 68,000 from 69,121 a year earlier. Still, stronger unit profitability drove gross profit per unit up 13% to $1,662, helping lift total used vehicle gross profit by 12%
The company also expanded its footprint through $70 million in acquisitions, expected to contribute $220 million in annualized revenue to its Domestic and Import businesses.
During the quarter, AutoNation (NYSE: AN) repurchased $225 million in stock as part of its ongoing efforts to return capital to shareholders. Strong cash flow and a healthy balance sheet have supported both its buyback strategy and acquisition-driven growth.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
