AutoNation, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $6.69 billion, a 3.2% increase from $6.49 billion in the same period last year. The company’s net income for the quarter was $175.5 million, or $4.45 per diluted share, compared to $190.1 million, or $4.49 per diluted share, in the first quarter of 2024. The slight decline in earnings was attributed to a decrease in gross profit from new vehicle sales, which fell by 10.7% to $174.9 million, while gross profit from used vehicles increased by 11.0% to $113.0 million.
In terms of operational metrics, AutoNation sold 62,387 new vehicles, a 6.0% increase from 58,863 units sold in the prior year. However, used vehicle sales saw a decline, with 68,000 units sold, down from 69,121 in the previous year. The company’s parts and service revenue also experienced a minor decrease, totaling $1.16 billion, down 0.7% from $1.17 billion in the same quarter of 2024. The overall gross profit for the quarter increased by 1.8% to $1.22 billion, driven by a rise in finance and insurance gross profit.
AutoNation's balance sheet showed total assets of $13.33 billion as of March 31, 2025, up from $13.00 billion at the end of 2024. The company’s cash and cash equivalents increased to $70.5 million from $59.8 million, while total liabilities decreased to $10.92 billion from $11.54 billion. The company’s long-term debt rose to $3.10 billion, reflecting the issuance of $500 million in senior notes due 2035. The company also repurchased 1.4 million shares of common stock for $224.8 million during the quarter.
Strategically, AutoNation expanded its footprint by acquiring one domestic store and one import store during the quarter, marking a return to acquisitions after no purchases in the same period last year. The company continues to focus on enhancing its AutoNation Finance segment, which reported a slight income of $0.1 million, a significant improvement from a loss of $5.0 million in the previous year. This growth is attributed to increased interest income and improved credit quality of new loan originations.
Looking ahead, AutoNation anticipates that the automotive retail environment will remain challenging due to ongoing market conditions, including potential impacts from tariffs on imported vehicles. The company expects to continue leveraging its diversified revenue streams, including finance and insurance, to mitigate risks associated with fluctuating vehicle sales and profitability.
About AUTONATION, INC.
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