AutoNation Reports $26.8 Billion Revenue and $692.2 Million Net Income for Fiscal Year 2024

AutoNation, Inc. reported a total revenue of $26.8 billion for the fiscal year ending December 31, 2024, a slight decrease of 0.7% compared to $26.9 billion in 2023. The company's net income was $692.2 million, translating to diluted earnings per share of $16.92, down from $1 billion and $22.74 per share in the previous year. The decline in profitability was primarily attributed to a 7% decrease in total gross profit, driven by significant reductions in new vehicle gross profit, which fell by 27%, and used vehicle gross profit, which decreased by 16%. The parts and service segment, however, saw a modest increase in gross profit of 3%, contributing to 46% of total gross profit.

In terms of operational metrics, AutoNation sold 254,715 new vehicles in 2024, a 4.2% increase from 244,546 units in 2023. However, used vehicle sales declined by 3% to 265,908 units. The company’s inventory management strategy has been effective, with new vehicle inventory levels rising to approximately 42,600 units by year-end 2024, compared to 35,300 units in 2023. The company also reported a total employee headcount of approximately 25,100 as of December 31, 2024.

Strategically, AutoNation has continued to expand its footprint, operating 325 new vehicle franchises across 243 stores, primarily in the Sunbelt region. The company has also invested in its AutoNation Finance segment, which provides indirect financing to customers. In 2024, AutoNation Finance reported a loss of $9.3 million, an improvement from a loss of $13.9 million in 2023, as the company increased its managed receivables and improved credit quality. The company’s capital allocation strategy remains focused on enhancing long-term shareholder value, with $860.8 million available for stock repurchases as of year-end.

Looking ahead, AutoNation anticipates continued challenges in the automotive retail market, particularly with the moderation of new vehicle pricing and margins due to increased inventory levels. The company expects to navigate these challenges through strategic initiatives, including enhancing its digital customer experience and expanding its service offerings. The impact of the CDK Global cyber incident in June 2024, which disrupted dealership operations, is expected to have residual effects, but management remains optimistic about recovery and growth in 2025.