AutoNation Touts $28B Revenue, $1B+ Free Cash Flow and Big Buybacks at Annual Meeting

Key Points

• AutoNation reported 2025 revenue of $28 billion, adjusted operating income of $1.4 billion, adjusted net income of $770 million, full-year adjusted EPS of $20.22 (up 16%), and generated more than $1 billion of free cash flow.
• Operationally the company saw modest new-vehicle unit growth, a 5% increase in used-vehicle gross profit, record after-sales gross profit of $2.4 billion (nearly half of total gross profit), and best-ever CFS gross profit per unit.
• Management emphasized a balanced capital-allocation plan: repurchasing more than 4 million shares (cutting shares outstanding ~10%), acquiring five dealerships, maintaining leverage targets, and shareholders voted down two governance and emissions disclosure proposals.

AutoNation NYSE: AN highlighted higher revenue, profit growth and more than $1 billion in free cash flow for 2025 during its 2026 Annual Meeting of Stockholders, with management emphasizing cost discipline, the stabilizing effect of its after-sales business, and a continued focus on share repurchases, selective acquisitions and maintaining leverage targets.

Board introductions and meeting agenda

Chairman of the Board Rick Burdick opened the meeting by introducing the company’s directors and their committee roles, including CEO and director Michael Manley; David Edelson, Chair of the Audit Committee; G. Mike Mikan, Chair of the Compensation Committee; and Jacqueline A. Travisano, Chair of the Corporate Governance and Nominating Committee, among others.

The operator later reviewed agenda items that included the election of directors, ratification of KPMG as independent registered public accounting firm for 2026, an advisory vote on executive compensation, approval of the AutoNation, Inc 2026 Employee Equity and Incentive Plan, and two stockholder proposals.

Management reviews 2025 results

In prepared remarks, CEO Michael Manley described 2025 as a volatile year for the automotive retail industry but said AutoNation delivered growth, strong cash flow and shareholder value while investing for long-term strength.

Manley reported that 2025 revenue totaled $28 billion, up 3% from the prior year. He said adjusted operating income was $1.4 billion, also up 3%, while adjusted net income rose 8% to $770 million. He added that AutoNation posted four consecutive quarters of year-over-year adjusted EPS growth, with full-year adjusted EPS of $20.22, up 16% year over year.

Manley said the company generated “more than $1 billion of free cash flow,” attributing results to “cost discipline” and “very tight control of SG&A,” alongside performance across business lines.

Operational performance: vehicles, finance and after-sales

On the retail side, Manley said new-vehicle unit sales increased 2%, broadly in line with the overall market. He noted unit profitability was lower for the full year but “stabilized in the fourth quarter.”

In used vehicles, Manley said volume increased slightly year over year and the company maintained unit profitability while improving wholesale performance, which “combined led to a 5% increase in used vehicles gross profit” in a competitive market.

Manley also highlighted strong results in Customer Financial Services (CFS), stating that full-year gross profit per unit was “the highest we have had in the history of AutoNation.” He said customers purchased “more than two products per vehicle,” with extended service contracts as the top offering, and that finance penetration continued to grow, with “around three-quarters of the units sold being sold with financing.”

In after-sales, Manley said AutoNation set new records and that the segment “remains nearly half of our gross profit.” He reported record gross profit for the year of $2.4 billion, up 7% over the record set in 2024.

Manley also discussed AutoNation Finance, saying momentum continued with a “$19 million year-over-year swing in profitability to $10 million.” He said originations increased by $700 million from 2024 and that the year-end portfolio exceeded $2.2 billion. He added that the company completed its inaugural ABS financing and improved advance rates on warehouse facilities, increasing debt funding of the portfolio from 75% to 88%.

Capital allocation and shareholder returns

Manley said AutoNation maintained a “balanced approach” to capital allocation, including significant share repurchases and acquisitions. He reported the company repurchased “more than 4 million shares,” reducing shares outstanding by 10%, and acquired five dealerships to add scale and density in existing markets. He also said leverage was maintained within the company’s targeted range.

During the Q&A, Manley reiterated that capital allocation priorities remain consistent across three categories:

• Maintenance capital expenditures, which he described as “relatively contained and predictable” and planned with operators and OEM partners.
• M&A, with Manley saying the 2025 additions were “of scale,” increased density, and came at what he viewed as improved market pricing and “good value.”
• Returning capital to shareholders, which he said remains a key priority through share repurchases.

Stockholder proposals and voting outcomes

Two stockholder proposals were presented. Shareholder Glenn Bady, speaking on behalf of a proposal sponsored by John Chevedden, urged adoption of an “enduring policy” requiring separate individuals to serve as CEO and chair, with the chair being an independent director. Bady argued an independent chair would improve governance, transparency and accountability and asked shareholders to vote in favor.

Giovanna Eichner of Green Century Capital Management presented a proposal requesting disclosure of AutoNation’s emissions and any targets for measurably reducing them. Eichner argued the lack of disclosure left investors questioning how the company would address climate-related risks, and noted AutoNation’s 10-K recognizes physical climate impacts as a business risk.

The operator stated the board recommended voting against both proposals, citing reasons described in the company’s proxy statement.

Preliminary results indicated that all director nominees were elected; KPMG’s appointment was ratified; stockholders approved the advisory executive compensation resolution and the 2026 employee equity and incentive plan; and stockholders voted against each of the stockholder proposals. The operator said final results would be reported in a Form 8-K.

About AutoNation NYSE: AN

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.

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