Slide 1: Fourth Quarter 2025 Earnings Release
Fourth Quarter 2025 Earnings Release February 6, 2026 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be dee
Slide 3: Overview
Q4 2025 Overview HIGHLIGHTS New Vehicle Unit (SS) -10% FY increased 2%, sequential Q4 margin improvement Used Vehicle Unit (SS) -5% FY increased 1%, Improved YoY Used : New ratio in Q4 CFS Gross Profit per Unit (SS) +7% $2,891 in Q4, FY increased 6% - record performance After-Sales Gross Profit (SS)
Slide 4: Financial Summary – A Year of Growth
Q4 2025 and FY 2025 Financial Summary – A Year of Growth ($ in millions, except per share data) Q4 2024 Q4 2025 FY 2025 Total Revenue $7,213 $6,929 $27,631 Full Year +3% Gross Profit $1,242 $1,215 $4,949 Full Year +3% Adj. SG&A Expense $824 $826 $3,328 Full Year 67.3% of gross profit Adj. Operating
Slide 5: New Vehicles
Q4 2025 New Vehicles RETAIL UNITS & UNIT PROFITABILITY -9% • Full year volume increased by 2% 71,434 64,841 • Market share up QoQ $2,969 $2,398 • Q1 – Q3 Pull-ins and Q4 2024 Post-Election Comps • Unit profitability up vs.Q3 ($2,281) driven by improvements in Domestic and Premium Luxury • Vehicle su
Slide 6: Used Vehicles
Q4 2025 Used Vehicles RETAIL UNITS & UNIT PROFITABILITY -3% 64,829 • Full year gross profit increased by 5% 62,926 • Used units 97% of New units in Q4 25 v. 91% in Q4 24 $1,538 $1,438 • Full year volume increased by 1% • Opportunity to acquire more competitively and turn more quickly • Vehicle suppl
Slide 7: Customer Financial Services – A Record Year
Q4 2025 Customer Financial Services – A Record Year GROSS PROFIT ($M) & UNIT PROFITABILITY $366 $369 • Gross profit up 8% for Full Year • Unit profitability up 8% Q4 25 and 6% for Full $2,891 Year $2,686 • Continued growth of AN Finance – superior long-term shareholder value • Unit profitability > $
Slide 8: AutoNation Finance – First Full Year Profit
Full Year 2025 AutoNation Finance – First Full Year Profit PROFITABILITY ($M) $10 • 100% growth in portfolio YoY, with Q4 market share ~14% • Improving credit on underwritings with FY 25 -$9 FICO ~ 696 (v 678 in FY 24 and 623 in FY 23) 2024 2025 • Improving funding efficiency with portfolio now 88%
Slide 9: After Sales – A Record Year
Q4 2025 After Sales – A Record Year REVENUE ($M) & GROSS MARGIN (%) 6% $1,224 $1,154 • Higher repair order count, value per repair 48.4% 48.3% order and labor productivity • Customer pay, our largest channel, grew 8% (SS) and 11% (TS) • Improved technician retention, franchise technician headcount g
Slide 10: Free Cash Flow – Record Cash Conversion
Full Year 2025 Free Cash Flow – Record Cash Conversion ADJ FCF ($M) & CONVERSION % $1,045 • Consistent, attractive cash conversion profile (100+%) $750 125% • Focused on working capital and cycle times (e.g. billing, time-to-auction, and service WIP) 105% • CapEx discipline ($~20M YoY reduction) • C
Slide 11: Capital Allocation – Shareholder Value Focused
Full Year 2025 Capital Allocation – Shareholder Value Focused CAPITAL ALLOCATION ($M) 2024 2025 Capital Expenditures $329 $309 • Continued strong cash conversion provides optionality M&A - $459 • Disciplined CapEx (down 6% vs. 2024) • Reduced shares outstanding by 10%+ from YE 24 at an average price
Slide 12: 2025 A Year of Growth
2025 A Year of Growth • Organic growth: higher unit sales, higher revenue and higher After-Sales margins • Acquisition growth: added 5 dealership with great brands in key markets • Cash flow growth: Adjusted Free Cash Flow of more than $1 Billion, up 39% • Increased Adjusted Net Income by 8% • Incre
Slide 13: Early Thoughts on 2026
Early Thoughts on 2026 • New unit sales largely in line with market – unit profitability stabilizing near 2H 2025 levels • Used vehicle market constrained with some improvement YoY • Customer Financial Services sustained performance • AN Finance portfolio scaling and profitability improving • After
Slide 14: Appendix
Appendix This presentation contains certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures.
Slide 15: Balance Sheet and Other Items
Q4 2025 Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 12/31/24 12/31/25 Cash and cash equivalents $59.8 $58.6 Inventory $3,360.0 $3,404.9 Floorplan notes payable $3,709.7 $3,828.3 Auto loans receivable, net $1,057.1 $2,140.2 Non-recourse debt (AN Finance funding) $
Slide 16: Comparable Basis Reconciliations (Three Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Three Months Ended December 31, 2024, and December 31, 2025 Income Before Diluted Earnings Per Operating Income Income Tax Provision(2) Effective Tax Rate Net Income Income Taxes Share(3) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2
Slide 17: Comparable Basis Reconciliations (Twelve Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Twelve Months Ended December 31, 2024, and December 31, 2025 Income Before Operating Income Income Tax Provision(2) Effective Tax Rate Net Income Diluted Earnings Per Share(3) Income Taxes 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
Slide 18: Free Cash Flow Reconciliation
Full Year 2025 Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation 2024 2025 Net cash provided by (used in) operating activities $314.7 $111.9 Net Proceeds from (payments of) vehicle floorplan – non-trade (113.5) 61.1 Increase in auto loans receivable, net 877.1 1,181.6 Adj.
Slide 19: Global Financial Crisis to 2025
SELECT HISTORICAL DATA Global Financial Crisis to 2025 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 FY Avg. Light Vehicle SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 16.3 15.0 New Retail SAAR (mm) 10.6 8.