• Q3 2026 EPS $4.87 and Adjusted EPS $5.11, seventh consecutive quarter of YoY growth
• Strong cash flow generation and cash conversion
• Share repurchases of $620 million year-to-date, 9% reduction of shares outstanding
• Additional $1 billion of share repurchase authorization approved
• Record After-Sales gross profit; Customer Pay growth 6%
• AN Finance portfolio growth of more than 40% YoY, profit up 10X YoY

AutoNation, Inc. (NYSE: AN) today reported third quarter 2026 revenue of $7.0 billion, relatively flat compared to the same period a year ago. Third quarter 2026 EPS was $4.87, compared to $5.65 a year ago, and third quarter 2026 Adjusted EPS was $5.11, compared to $5.01 a year ago. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

“Our team delivered another solid quarter, growing adjusted EPS for the seventh consecutive quarter,” said Mike Manley, Chief Executive Officer of AutoNation. “Record After-Sales performance and strong growth in AutoNation Finance further increased the contribution of recurring earnings and cash flow, leading to exceptional cash generation and disciplined capital allocation. We utilized nearly 85 percent of our adjusted free cash flow for share repurchases, reducing shares outstanding by 9 percent year-to-date. The current environment strongly favors allocating capital toward share repurchases and as such we have secured Board authorization for an additional $1 billion in share repurchases,” Manley concluded.

Operational Summary

Third quarter 2026 compared to the year-ago period:

Year-to-date 2026 compared to the year-ago period:

Capital Allocation, Liquidity, and Leverage

For the first nine months ended September 30, 2026, cash used in operating activities was $160.4 million, auto loans receivable, net, increased $708.4 million, capital expenditures were $201.7 million, and adjusted free cash flow was $739.0 million, or 141% of adjusted net income.

During the first nine months of 2026, AutoNation repurchased 3.1 million shares for an aggregate purchase price of $620 million or $198.68 per share. Year-to-date through October 28, 2026, AutoNation repurchased 3.4 million shares for an aggregate purchase price of $668 million or $194.99 per share. In October 2026, AutoNation’s Board of Directors authorized the repurchase of up to an additional $1.0 billion of common stock under its share repurchase program. As of October 28, 2026, $1.4 billion remained available for share repurchases under the program.

As of September 30, 2026, AutoNation had $1.5 billion of liquidity, including $51 million in cash and $1.4 billion of availability under its revolving credit facility, net of commercial paper borrowings. The Company’s covenant leverage ratio was 2.7X at quarter-end, and the Company had $4.3 billion of non-vehicle debt outstanding.

In September 2026, AutoNation amended its unsecured Credit Agreement, increasing the revolving borrowing capacity to $2.0 billion and extending the maturity date to September 14, 2031, among other things. In October 2026, the Company increased its commercial paper program capacity to $2.0 billion, matching the capacity under its revolving credit facility.

The third quarter conference call may be accessed by telephone at 833-461-5787 (Conference ID: 561396341) at 9:00 a.m. Eastern Time today or on AutoNation’s investor relations website at investors.autonation.com. The webcast will also be made available on AutoNation’s investor relations website following the call under “Events & Presentations.” Finally, additional information regarding AutoNation’s results can be found in the Investor Presentation available on the investor relations website.

About AutoNation, Inc.

AutoNation, one of the largest automotive retailers in the United States, offers innovative products and exceptional services as part of a portfolio of comprehensive solutions for our customers and their automotive needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised over $50 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

Please visit www.autonation.com, investors.autonation.com, newsroom.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations.

NON-GAAP FINANCIAL MEASURES

This news release and the attached financial tables contain 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. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated and presented in accordance with GAAP.

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 deemed to be, forward-looking statements. Words such as “anticipates,” “expects,” “estimates,” “intends,” “goals,” “targets,” “projects,” “plans,” “believes,” “continues,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, and investments, including AutoNation Finance, statements regarding our expectations for the future performance of our business and the automotive retail industry, including with respect to After-Sales, Customer Financial Services, new and used vehicle volume and profitability, SG&A as a percentage of total gross profit, earnings per share, and shareholder returns, as well as other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: economic conditions, including changes in tariffs, unemployment, interest and/or inflation rates, consumer demand, and fuel prices; our ability to implement successfully our strategic acquisitions, initiatives, partnerships, and investments; our ability to maintain or improve gross profit margins; our ability to maintain or gain market share; safety recalls, legal, reputational, and financial risks resulting from cyber incidents and the potential impact on our operating results; the receipt of any insurance or other recoveries in connection with any cyber incidents; our ability to successfully implement and maintain expense controls; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new acquisitions; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for franchise acquisitions; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; changes in automotive laws and regulations affecting our business, including fuel economy requirements; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.