AutoNation Expands Financing Program, Strengthening Its Cash Flow

AutoNation, Inc. (NYSE:AN) is benefiting from a broader trend of robust consumer spending in the automotive sector, propelling its stock upward. This trend, fueled by increased demand for both new and used vehicles, has allowed the company to surpass market expectations and deliver impressive financial results.

• AN stock is drifting down. See real-time price here.

The company reported adjusted earnings per share of $5.46 on Friday, beating the analyst consensus estimate of $4.60.

Quarterly sales of $6.974 billion outpaced the Street view of $6.769 billion.

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“Cash flow was solid in the quarter and the demand for our AN Finance asset securitization was outstanding, enabling an upsizing of the offering, a lowering of the rate, and the attainment of nearly 100% debt funding,” said Mike Manley, chief executive officer of AutoNation. 

Quarterly gross profit rose 10% year over year to $1.275 billion, while operating income slumped 21% year over year to $217.6 million.

Same-store revenue gained 8% to $6.904 billion, while same-store gross profit rose 10% to $1.263 billion.

In the second quarter of 2025, AutoNation’s Domestic Segment Income rose 83% to $92 million, with revenue up 10% to $1.9 billion.

The Import Segment saw a 23% income increase to $133 million on a 6% rise in revenue to $2.1 billion.

Premium Luxury Segment Income climbed 27% to $180 million, while revenue grew 7% to $2.6 billion.

AutoNation Finance income doubled to $2 million, driven by improved net interest margins and efficiencies, despite higher credit provisioning from strong loan growth.

As of June 30, AutoNation had $1.8 billion of liquidity, including $63 million in cash and $1.8 billion of availability under its revolving credit facility, net of commercial paper borrowings. 

AN Price Action: AutoNation shares were down 1.37% at $197.50 at the time of publication on Friday, according to Benzinga Pro.

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