AutoCanada Q2 revenue misses estimates

Autocanada

13/08/2025 22:08

Overview

AutoCanada Q2 revenue falls 3.1%, missing analyst expectations, per LSEG data

Adjusted EBITDA beats estimates, rising 92.4% yr/yr, reflecting cost-saving measures

Company progressing with U.S. divestiture, focusing on Canadian operations

Outlook

Company expects C$115 mln in annual cost savings by end of 2025

AutoCanada anticipates near-term softness in same-store sales

AutoCanada plans to complete U.S. exit by year-end

Result Drivers

REVENUE DECLINE - Revenue fell 3.1% due to decreased used vehicle sales and finance and insurance revenue

GROSS PROFIT INCREASE - Improved management of used vehicle inventory boosted gross profit despite lower retail unit volumes

COST SAVINGS - Operating expenses before depreciation decreased by 9.0%, contributing to higher adjusted EBITDA

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$1.34 bln
C$1.35 bln (6 Analysts)
Q2 EPS
C$0.72
Q2 Net Income
C$18.88 mln
Q2 Adjusted EBITDA
Beat
C$68.50 mln
C$47.30 mln (6 Analysts)
Q2 Adjusted EBITDA Margin
4.8%
Q2 Gross Profit
C$225.37 mln
Q2 Operating Income
C$54.67 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

Wall Street's median 12-month price target for AutoCanada Inc is C$27.50, about 5.3% below its August 12 closing price of C$28.95

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nCNWPTBJja

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)