Canada's AutoCanada Q1 revenue falls on lower new vehicle sales

Autocanada

13/05/2026 22:21

Overview

Canada auto dealership group's Q1 revenue fell 4% yr/yr but beat analyst expectations

Company posted Q1 net loss from continuing operations as gross profit and adjusted EBITDA margin declined

AutoCanada advanced U.S. dealership divestitures and expanded collision operations during the quarter

Outlook

Company sees 2026 as a transitional year, with consistent performance requiring sustained execution into early 2027

AutoCanada expects about C$130 mln in total proceeds from U.S. dealership divestitures, to be used for debt reduction

Result Drivers

SOFT NEW VEHICLE DEMAND - Revenue and gross profit declined mainly due to lower new vehicle sales, parts and service, and F&I, partially offset by higher used vehicle sales

USED VEHICLE MARGIN PRESSURE - Gross profit per used vehicle fell as company worked through aged inventory

COLLISION OPERATIONS RESILIENCE - Gross profit in collision segment increased, supported by newly acquired stores and stable demand, though overall revenue was impacted by normalization after prior-year hail event

Company press release: ID:nCNWddmlca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$1.19 bln
C$1.11 bln (6 Analysts)
Q1 Net Income
-C$3.30 mln
Q1 Adjusted EBITDA Margin
2.60%
Q1 Gross Profit
C$169.08 mln
Q1 Operating Income
C$19.23 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "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$22.00, about 1.1% above its May 12 closing price of C$21.75

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

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.)