AutoNation Reports 7.6% Revenue Growth to $6.97 Billion in Q2 2025

AutoNation, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $6.97 billion, a 7.6% increase from $6.48 billion in the same period last year. The company’s net income for the quarter was $86.4 million, translating to diluted earnings per share of $2.26, down from $130.2 million and $3.20 per share in the prior year. The decline in profitability was attributed to non-cash impairments totaling $122.8 million, which included a $65.3 million goodwill impairment and a $71.7 million franchise rights impairment.

In terms of operational performance, AutoNation's new vehicle sales increased by 8.8% to $3.40 billion, while used vehicle sales rose by 3.9% to $1.99 billion. Parts and service revenue also saw a notable increase of 9.3%, reaching $1.22 billion. The company’s gross profit for the quarter was $1.28 billion, a 9.7% increase compared to the previous year, driven primarily by growth in parts and service gross profit, which rose by 11.6%. However, new vehicle gross profit decreased by 3.7%, reflecting a moderation in margins due to increased inventory supply.

AutoNation's strategic developments included the acquisition of one Domestic store and one Import store during the first half of 2025, marking a shift from the previous year when no acquisitions were made. The company continues to operate 322 new vehicle franchises across 244 stores, with a significant presence in major metropolitan markets. As of June 30, 2025, AutoNation also operated 52 collision centers and 26 used vehicle stores, contributing to its diversified revenue streams.

The company reported a total of 69,736 used vehicle sales in the second quarter, a 6.5% increase year-over-year, while new vehicle sales reached 65,847 units, up 7.5%. The average revenue per vehicle retailed for new vehicles was $51,579, reflecting a 1.2% increase, while used vehicle revenue per unit decreased slightly by 0.6% to $26,457. AutoNation's finance and insurance segment also performed well, with revenue increasing by 13.5% to $367.7 million, driven by higher vehicle unit volume and improved margins on service contracts.

Looking ahead, AutoNation anticipates continued challenges due to market conditions, including potential impacts from tariffs on imported vehicles and parts. The company expects to navigate these challenges while focusing on its strategic initiatives, including the expansion of its AutoNation Finance business and enhancing its digital sales channels. The management remains optimistic about the long-term growth prospects, despite the short-term fluctuations in profitability and market dynamics.