Slide 1: First Quarter 2025 Earnings Release
First Quarter 2025 Earnings Release April 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: 1Q 2025 Overview
1Q 2025 Overview HIGHLIGHTS New Vehicle Same Store Unit Growth +7% YoY Share increase in AN-served markets Used Vehicle Gross Profit +12% Unit profitability and Gross Profit up YoY Customer Financial Services #1 Continued strong unit profitability After-Sales Gross Profit $568 M Record gross profit;
Slide 4: Financial Summary
1Q 2025 Financial Summary ($ in millions, except per share data) 1Q 2024 1Q 2025 YoY Total Revenue $6,486 $6,690 3% New Vehicle Revenue +10% (SS) Gross Profit $1,198 $1,220 2% Used +12%, CFS +6%, After-Sales +4% (SS) Adj. SG&A Expense $786 $823 5% In line with outlook; targeting 66% - 67% FY Adj. Op
Slide 5: New Vehicles
1Q 2025 New Vehicles RETAIL UNITS & UNIT PROFITABILITY 7% SS • Units increased 7% (SS) YoY, with growth in 62,387 all three vehicle segments 58,863 • Strong pace further accelerated by tariff announcement $3,328 • Unit profitability down seasonally from 4Q 24, $2,803 flat with 3Q 24 • Continued inve
Slide 6: Used Vehicles
1Q 2025 Used Vehicles RETAIL UNITS & UNIT PROFITABILITY 69,121 68,000 • Unit profitability up 13% from 1Q 24; up 8% from 4Q 24 $1,662 • Total Used gross profit +12%, reflecting unit retail profitability and stronger wholesale • Lower priced vehicles continue to outperform - $1,473 10+% increase in s
Slide 7: Customer Financial Services
1Q 2025 Customer Financial Services GROSS PROFIT ($M) & UNIT PROFITABILITY $353 $335 • Strong CFS performance continues – unit profitability increased YoY and QoQ $2,703 (overcoming seasonal headwinds) $2,615 • Robust product attachment and finance penetration for new and used vehicles • Continued g
Slide 8: AutoNation Finance
1Q 2025 AutoNation Finance ORIGINATIONS ($M) & AVERAGE FICO Weighted Average FICO $460 695 • Attractive offerings driving strong customer $161 take-up in high ROE business model 659 • Penetration rate of 10% of units sold – up 1Q24 1Q25 from 4% a year ago PORTFOLIO BALANCE ($M) • 30+ Day Delinquenci
Slide 9: After Sales
1Q 2025 After Sales REVENUE ($M) & GROSS MARGIN (%) $1,173 $1,164 • Top-line growth 2% (SS), sales per day growth of 4% • Gross profit growth 4% (SS), GP per day 48.8% growth of 5% • Gross Margin up 140 bps – improved parts 47.4% and labor rates, capacity utilization, and higher value orders • 3% in
Slide 10: Free Cash Flow
1Q 2025 Free Cash Flow ADJ FCF ($M) & CONVERSION % $257M $237M • Consistent, attractive cash conversion profile (129%) • Remain focused on cycle times (e.g. billing, time-to-auction, and service WIP) • YoY Reinvestment Ratio (CapEx : Depreciation) 1.2x vs. 1.6x in the prior year 1Q 2024 1Q 2025 Adju
Slide 11: Capital Allocation
1Q 2025 Capital Allocation CAPITAL ALLOCATION ($M) 1Q 24 1Q 25 • Continued strong cash conversion provides Capital Expenditures $94 $75 optionality • Capital Expenditures ~20% lower than 1Q 24 M&A - $70 • Acquired two stores adding density to Denver market • Nearly 1.4M shares repurchased at an Shar
Slide 12: Closing Comments
Closing Comments • Great start to 2025, robust performance across all business lines • Continued solid cash generation • Deployed ~$300M of capital on share repurchase and M&A • Durable business model proven in all economic environments 12
Slide 13: Appendix
Appendix This presentation contains certain non-GAAP financial measures as defined under SEC rules, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures.
Slide 14: Global Financial Crisis to 2025
SELECT HISTORICAL DATA Global Financial Crisis to 2025 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 FY Avg. Light Vehicle SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 15.6 15.9 16.6 15.0 New Retail SAAR (mm) 10.6 8.
Slide 15: Balance Sheet and Other Items
1Q 2025 Balance Sheet and Other Items ($ in millions) Balance Sheet and Other Highlights 3/31/24 3/31/25 Cash and cash equivalents 60.3 70.5 Inventory 3,002.7 3,231.6 Floorplan notes payable (3,270.9) (3,558.9) Auto loans receivable, net 517.9 1,397.7 Non-recourse debt (AN Finance funding) (345.2) (
Slide 16: Comparable Basis Reconciliations
NON-GAAP RECONCILIATIONS Comparable Basis Reconciliations(1) Three Months Ended March 31, 2024, and March 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 2024 20
Slide 17: Free Cash Flow Reconciliation
1Q 2025 Free Cash Flow Reconciliation ($ in millions) Free Cash Flow Reconciliation 2024 2025 Net cash provided by (used in) operating activities $294.5 ($52.5) Net payments of vehicle floorplan – non-trade (93.5) (0.9) Increase in auto loans receivable, net 149.5 365.4 Adj. cash provided by operati