AutoNation, Inc. (NYSE: AN) reported fourth-quarter adjusted earnings that exceeded analyst expectations even as revenue declined, highlighting the resilience of its diversified operating model. Shares climbed more than 9% intra-day on Friday.
The auto retailer posted adjusted earnings per share of $5.08, topping the consensus estimate of $4.91. Revenue totaled $6.9 billion, falling short of expectations of $7.22 billion and declining 4% from the same period last year.
New vehicle performance was pressured, with same-store retail new vehicle unit sales down 10.2% year over year. AutoNation attributed the decline to tough comparisons from the prior year, as well as elevated sales earlier in 2025 linked to tariffs and the expiration of government electric-vehicle incentives.
Despite these headwinds, the company delivered record fourth-quarter gross profit in its After-Sales business, supported by 4% same-store growth. AutoNation also reported record quarterly Customer Financial Services profit per unit, underscoring the strength of its diversified revenue streams.
AutoNation Finance continued to expand, growing its portfolio to $2.2 billion while improving both profitability and funding. During the quarter, the company completed strategic acquisitions in Baltimore, Chicago, and Denver, enhancing its brand mix and geographic footprint.
