Slide 1: Second Quarter 2025 Earnings Release
Second Quarter 2025 Earnings Release July 25, 2025 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: 2Q 2025 Overview
2Q 2025 Overview HIGHLIGHTS New Vehicle Unit Growth (SS) +8% YoY 5% 1Q to 2Q / Gaining Share Used Vehicle Gross Profit (SS) +12% Higher unit sales YoY, stable margins CFS Gross Profit (SS) +13% Continued strong unit profitability After-Sales Gross Profit (SS) +13% Record gross profit; gross margin e
Slide 4: Financial Summary
2Q 2025 Financial Summary ($ in millions, except per share data) 2Q 2024 2Q 2025 YoY Total Revenue $6,480 $6,974 8% New Vehicle Revenue +9%, After-Sales +12% (SS) Gross Profit $1,163 $1,275 10% Used +12%, CFS +13%, After-Sales +13% (SS) Adj. SG&A Expense $782 $844 8% 66.2% of Gross Profit (v. target
Slide 5: New Vehicles
2Q 2025 New Vehicles RETAIL UNITS & UNIT PROFITABILITY 7% 65,847 • Same store units increased 8%, with growth in all three vehicle segments led by Domestic +19% 61,268 • Strong April performance post tariff $3,108 $2,785 announcement moderated during the quarter • Unit profitability increased sequen
Slide 6: Used Vehicles
2Q 2025 Used Vehicles RETAIL UNITS & UNIT PROFITABILITY • Units sold increased 6% from 2024 and 3% sequentially with stable unit profitability 69,736 65,504 • Strong unit growth led by sub $20k and over $1,638 $40k $1,622 • Total Used gross profit +13%, reflecting retail unit profitability and stron
Slide 7: Customer Financial Services
2Q 2025 Customer Financial Services GROSS PROFIT ($M) & UNIT PROFITABILITY $368 $324 • Strong CFS performance continues – $2,712 unit profitability increased YoY and QoQ • Robust product attachment and product $2,556 penetration for new and used vehicles • Continued growth of AN Finance – superior l
Slide 8: AutoNation Finance
1H 2025 AutoNation Finance ORIGINATIONS ($M) & AVERAGE FICO Weighted Average FICO $924 • Attractive offerings driving strong customer 696 $395 take-up in high ROE business model 667 • Penetration rate of 10% of units sold in 2Q 25 1H24 1H25 – up from 6% in 2Q 24 • $2.1M 1H 25 profitability (incl. $2
Slide 9: After Sales
2Q 2025 After Sales REVENUE ($M) & GROSS MARGIN (%) $1,221 $1,117 49.0% • Top-line growth 12% (SS) 48.0% • Gross profit growth 13% (SS) • Gross Margin up 100 bps – [improved parts and labor rates, capacity utilization, and higher value orders] • Increase in technician headcount and higher productivi
Slide 10: Free Cash Flow
1H 2025 Free Cash Flow ADJ FCF ($M) & CONVERSION % $519M $394M • Consistent, attractive cash conversion profile (100%) 147% • YoY Reinvestment Ratio (CapEx : Depreciation) 1.2x vs. 1.5x in the prior year 100% • Remain focused on cycle times (e.g. billing, time-to-auction, and service WIP) 1H 2024 1H
Slide 11: Capital Allocation YTD
1H 2025 Capital Allocation YTD CAPITAL ALLOCATION ($M) 1H 24 1H 25 Capital Expenditures $181 $154 • Continued strong cash conversion provides optionality • Capital Expenditures ~15% lower than 1H 24 M&A - $70 • >1.5 million shares repurchased at an average price of $164 Share Repurchases $350 $254 •
Slide 12: Closing Comments
Closing Comments • Strong execution and performance across all dimensions of the business • Healthy balance sheet and robust cash conversion • Focus on generating attractive returns through capital allocation and share repurchases • Well positioned for success in evolving landscape Durable business
Slide 13: Appendix
Appendix This presentation contains certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures.
Slide 14: Global Financial Crisis to 2025
SELECT HISTORICAL DATA Global Financial Crisis to 2025 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1H25 FY Avg. Light Vehicle SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 16.3 15.0 New Retail SAAR (mm) 10.6 8.
Slide 15: Balance Sheet and Other Items
2Q 2025 Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 6/30/24 6/30/25 Cash and cash equivalents $85.9 $62.9 Inventory $3,553.9 $3,445.6 Floorplan notes payable $3,959.8 $3,655.9 Auto loans receivable, net $709.4 $1,702.4 Non-recourse debt (AN Finance funding) $488.
Slide 16: Comparable Basis Reconciliations (Three Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Three Months Ended June 30, 2024, and June 30, 2025 Income Before Diluted Earnings Per Operating Income Income Tax Provision(2) Effective Tax Rate Net Income Income Taxes Share(3) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
Slide 17: Comparable Basis Reconciliations (Six Months)
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Six Months Ended June 30, 2024, and June 30, 2025 Income Before Diluted Earnings Per Operating Income Income Tax Provision(2) Effective Tax Rate Net Income Income Taxes Share(3) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 A
Slide 18: Free Cash Flow Reconciliation
1H 2025 Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation 2024 2025 Net cash provided by (used in) operating activities $234.9 ($230.3) Net payments of vehicle floorplan – non-trade 94.8 83.1 Increase in auto loans receivable, net 370.6 695.0 Adj. cash provided by operating