AutoNation profit beats estimates despite revenue dip

AutoNation (NYSE:AN) reported fourth-quarter adjusted profit that surpassed analyst expectations, as record performance in its repair and parts business helped the dealership giant navigate a cooling market for new vehicles.

The Fort Lauderdale-based retailer posted adjusted earnings of $5.08 per share, comfortably beating the $4.91 consensus estimate from analysts surveyed by Zacks Investment Research.

However, total revenue fell 4% to $6.93 billion, missing the $7.14 billion forecast.

The revenue decline was primarily driven by a 10% drop in same-store new vehicle unit sales, which faced tough comparisons against a robust 2024 and the expiration of several government electric vehicle incentives.

Elsewhere, AutoNation remained aggressive in its capital return strategy, repurchasing 1.7 million shares for $350 million during the quarter.

For the full year 2025, the company reduced its total share count by 10%.

Looking ahead, the firm is pivoting away from low-margin electric vehicles in favor of premium luxury brands to bolster profitability in a shifting retail landscape.