Slide 1: Second Quarter 2026 Earnings Release
Second Quarter 2026 Earnings Release July 31, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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: What You'll Hear Today
What You’ll Hear Today • Consumer and industry in good shape • After Sales solid, led by Customer Pay up 7% (4% SS) • Parts Wholesale expansion strategy, with sales up 16% • CFS continues to power forward • Vehicle unit profitability stabilizing, expect progress on unit volumes 2H • SG&A on track, 1
Slide 4: Business Line Performance
Business Line Performance 49% 29% 12% 10% After-Sales Gross Profit ($M) CFS Gross Profit ($M) New Gross Profit ($M) Used Gross Profit ($M) $607 $368 $599 $358 $183 $151 $2,799 $125 $115 $2,712 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 New locations • Record performance • Per Un
Slide 5: Cash Generation & Deployment
Cash Generation & Deployment Adj. FCF ($M) / Conversion % Capital Allocation ($M) AN Finance Portfolio Covenant Leverage (Net of Cash) Repurchases CapEx M&A Non-Recourse Debt AN Equity $439 $394 $2,668 $900 2.7X 2.3X $1,761 125% 100% $478 91% 83% 1H 2025 1H 2026 1H 2025 1H 2026 Q2 2025 Q2 2026 Q2 20
Slide 6: Financial Summary
Financial Summary ($ in millions, except per share data) Q2 2025 Q1 2026 Q2 2026 After-Sales growth offsets Tariff / BEV Total Revenue $6,974 $6,552 $6,930 headwinds Gross Profit $1,275 $1,211 $1,231 17.8% of revenue, continued top tier performance Adj. SG&A Expense 66.2% 69.8% 68.2% 160 bps reducti
Slide 7: After-Sales
After-Sales Revenue ($M) & Gross Margin (%) 3% $1,263 $1,221 • Revenue growth driven by Customer Pay +7% and Wholesale +16% 49.0% 48.1% • Gross margin rate stable from Q1, YoY impacted by mix • Record Gross Profit New locations • Franchise technician headcount growth of 2% (SS) Q2 2025 Q2 2026 Reven
Slide 8: Customer Financial Services
Customer Financial Services Gross Profit ($M) & Unit Profitability $368 $358 • 3% unit profitability growth; AN Finance impact of approx. -2% • Continued strong product and finance penetration $2,799 $2,712 New locations • Improved service contract and commission profitability Q2 2025 Q2 2026 Gross
Slide 9: AutoNation Finance
AutoNation Finance Profitability ($M) $11 $2 • Total Interest margin up $11 M (35%), volume driven 2Q 25 2Q 26 • Stable direct expenses and delinquencies Portfolio Balance ($M) • Third ABS closed June 2026 (~$550M) New locations AN Equity Funding (%) • Portfolio now 91% debt-funded (v 83% Q2 $2,668
Slide 10: New Vehicles
New Vehicles Retail Units & Unit Profitability -4% 65,847 63,240 • Market share performance stable with Q1 $2,785 • Impacts from tariff pull-ahead (Apr. 2025) $2,381 and BEV subsidies (through Sept. 2025) New locations • Unit profitability stable over the last year • Healthy vehicle supply Q2 2025 Q
Slide 11: Used Vehicles
Used Vehicles Retail Units & Unit Profitability -7% 69,736 • Units >$40k up 10% drove overall revenue 64,521 per unit +8% $1,622 $1,582 • Unit profitability stable over last year • Healthy vehicle supply, 90% internally New locations sourced • Off lease vehicle supply improving in 2H 2026 Q2 2025 Q2
Slide 12: Free Cash Flow
Free Cash Flow Adj. FCF ($M) & Conversion (%) $439 $394 125% • Consistent, attractive cash conversion profile (100+%) 100% • Continued working capital and cycle time focus New locations • On track for $325 million of full year CapEx 1H 2025 1H 2026 Adjusted FCF ($M) Conversion % Refer to the Appendi
Slide 13: Capital Allocation
Capital Allocation Capital Allocation ($M) Approach June YTD 2025 2026 Capital Expenditures $154 $126 • Cap Ex investments, mostly maintenance- related M&A $70 $317 • Pursue select M&A opportunities which Share Repurchases $254 $457 add scale and density New locations Total $478 $900 • All residual
Slide 14: Question & Answer
Question & Answer New locations 14
Slide 15: A Look Back and Ahead
A Look Back and Ahead New locations 15
Slide 16: Setting the Pace in Auto Retail…
Setting the Pace in Auto Retail… Gross Profit Margin Adj. SG&A as % of Gross Profit Adj. Operating Margin Adj. EPS 17.9% 72.3% 5.0% $20.22 16.5% 67.3% 3.7% $4.57 15.2% 16.5% 73.5% 69.3% 3.4% 4.2% 2019 2025 2019 2025 2019 2025 2019 2025 New locations • Commercial strength and • Scale, flexible cost s
Slide 17: …Enabling Outstanding "Returns"
…Enabling Outstanding “Returns” Return on Invested Capital Return of Cash to Shareholders Share Repurchase as % of Adj. FCF 13.9% 75% 8.8% 12% 2019 2025 2019 2025 New locations • Adj. Net income up 85% • $6.3B of Adj. FCF 2020-2025 • Invested Capital 18% • $6.5B of Share Repo. 2020-2025 Financial Re
Slide 18: Closing & Outlook
Closing & Outlook • Consumer and industry sales resilient • After Sales well positioned for continued mid-single digit Customer Pay growth • Customer Financial Services sustained leading performance • AN Finance continued scaling of portfolio and profit growth • Stabilizing new and used unit profita
Slide 19: Appendix
‘AutoNation Appendix
Slide 20: Global Financial Crisis to 2025
Global Financial Crisis to 2025 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM FY Avg. Light Vehicle SAAR (M) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 16.3 16.0 15.0 New Retail SAAR (M) 10.6 8.6 9.2 10.3 11.7
Slide 21: Balance Sheet and Other Items
Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 6/30/25 6/30/26 Cash and cash equivalents $63 $53 Inventory 3,446 3,738 Floorplan notes payable 3,656 4,059 Auto loans receivable, net 1,702 2,589 Non-recourse debt (AN Finance Funding) 1,465 2,417 Non-vehicle debt 3,76
Slide 22: Non-GAAP Reconciliations – Comparable Basis
Non-GAAP Reconciliations – Comparable Basis Three Months Ended June 30, 2025, and June 30, 2026 Income Before Income Tax Diluted Earnings Operating Income Effective Tax Rate Net Income Income Taxes Provision(2) Per Share(3) 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 As reported 217.
Slide 23: Non-GAAP Reconciliations – Comparable Basis
Non-GAAP Reconciliations – Comparable Basis Six Months Ended June 30, 2025, and June 30, 2026 Income Before Income Tax Diluted Earnings Operating Income Effective Tax Rate Net Income Income Taxes Provision(2) Per Share(3) 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 As reported 553.6
Slide 24: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation Six Months Ended June 30 2025 2026 Net cash used in operating activities ($230.3) ($48.9) Net Proceeds from vehicle floorplan – non-trade 83.1 120.5 Increase in auto loans receivable, net 695.0 493.6 Adj. cash provided by op