AutoNation, Inc. (NYSE:AN) reported fourth-quarter adjusted earnings that came in ahead of Wall Street expectations on Friday, showing resilience from its diversified operations despite a year-on-year decline in revenue. Shares were little changed in premarket trading following the release, edging down around 0.01%.
The U.S. auto retailer posted adjusted earnings of $5.08 per share for the quarter, beating analyst estimates of $4.91. Revenue totaled $6.9 billion, however, missing the consensus forecast of $7.22 billion and marking a 4% drop compared with the same period a year earlier.
New vehicle sales were a key drag on the top line. Same-store retail new vehicle unit sales fell 10.2% year on year, reflecting tough comparisons with the fourth quarter of 2024 as well as the impact of elevated sales earlier in 2025 tied to tariffs and the expiry of government incentives for electric vehicles.
Offsetting this weakness, AutoNation delivered record fourth-quarter gross profit in its After-Sales segment, with same-store growth of 4%. The company also achieved a record level of quarterly Customer Financial Services profit per unit, underscoring the strength of its more stable and higher-margin revenue streams.
“We are pleased to report another quarter of strong performance with record gross profit in After-Sales and unit profitability in Customer Financial Services,” said Mike Manley, Chief Executive Officer of AutoNation.
“For the full year we grew unit volume for both new and used vehicles, increased revenues across all our business lines and grew gross profit for After-Sales, Customer Financial Services and Used vehicles.”
Capital allocation remained a priority during the quarter. AutoNation repurchased 1.7 million shares for $350 million, at an average price of $209 per share. Over the full year 2025, the company bought back 4.1 million shares, reducing its total share count by roughly 10%.
AutoNation Finance continued to expand, with its portfolio growing to $2.2 billion alongside improvements in profitability and funding. The group also completed a series of strategic acquisitions in Baltimore, Chicago and Denver, strengthening its brand mix and increasing market density.
For the full year 2025, AutoNation reported adjusted earnings per share of $20.22, up from $17.46 in 2024, and generated more than $1 billion in adjusted free cash flow.