Canada's AutoCanada Q2 revenue beats estimates on used retail vehicles

Autocanada

12/08/2026 22:06

Overview
Canada auto dealership group's Q2 revenue rose 6% yr/yr, beating analyst expectations
Net income from continuing operations fell 36% due to lower gross profit and higher finance costs
Company advanced U.S. dealership divestiture and expanded collision repair operations through acquisitions

Outlook
AutoCanada expects Canadian new light vehicle demand to remain muted through the rest of 2026
Company forecasts full-year Canadian industry sales at about 1.9 mln units, down 4% vs 2025
AutoCanada sees 2026 as a transition year, with focus on operational improvements

Result Drivers
SOFT INDUSTRY DEMAND - Co said Canadian automotive demand remained subdued in Q2, with new vehicle sales under pressure
USED VEHICLE MARGIN PRESSURE - Used retail vehicle sales rose 10% yr/yr but profitability remained below historical levels as co worked through aged inventory
COLLISION BUSINESS MIX - Collision gross profit rose 7.1% as acquisitions and a shift to higher-margin core collision work offset lower revenue from paintless dent repair

Company press release: ID:nCNWY1CnPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$1.42 bln
C$1.27 bln (6 Analysts)
Q2 EPS
 
C$0.46
 
Q2 Net Income
 
C$24.40 mln
 
Q2 Adjusted EBITDA Margin
 
3.70%
 
Q2 Gross Profit
 
C$207.05 mln
 
Q2 Operating Income
 
C$43.03 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "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$22.75, about 2.1% above its August 11 closing price of C$22.29
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 12 - Canada's Boyd Group Q2 revenue up 30%, slightly misses estimates
Aug 12 - Kamux Q2 revenue rises as car sales grow
Aug 10 - ACV Auctions Q2 adjusted core profit beats, partly on Marketplace Services strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)