Canada · Delayed Price · Currency is CAD AutoCanada Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 6% year-over-year to CAD 1.4 billion, driven by used vehicle and finance & insurance strength, but gross profit and margins declined due to market softness. Operational improvements, portfolio simplification, and new leadership aim to restore profitability and reduce leverage.
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Q1 2026 saw adjusted EBITDA fall to CAD 31 million amid a soft Canadian auto market and negative used vehicle margins, but operational improvements are driving sequential gains in used profitability and sales. Collision business remains strong despite lower hail revenue, and U.S. divestitures are progressing to support debt reduction.
Fiscal Year 2025
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Q4 revenue and gross profit declined sharply year-over-year due to lower vehicle volumes and operational disruptions, but full-year adjusted EBITDA rose 11.5% on cost savings and collision business strength. Execution issues are being addressed, with improvement expected in the second half of 2026.
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Revenue and EBITDA declined year-over-year due to restructuring and softer demand, but cost controls drove margin expansion and operating expenses fell over 20%. Collision business grew 19%, and U.S. dealership divestitures are on track to strengthen the balance sheet.
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Second quarter results reflect a near doubling of adjusted EBITDA, margin expansion, and strong cost discipline, despite a 3% revenue decline. U.S. divestiture is progressing, with proceeds set to reduce leverage and support a focused Canadian growth strategy.
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Revenue grew 2.3% year-over-year in Q1, driven by new vehicles and collision, while cost transformation initiatives delivered CAD 48.1 million in annualized savings. The U.S. business is being divested, and leverage remains elevated but stable, with a focus on debt reduction and operational efficiency.
Fiscal Year 2024
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Q4 2024 saw strong Canadian new vehicle demand and 12.8% adjusted EBITDA growth, but used sales declined and U.S. operations were reclassified as discontinued after losses. The transformation plan targets CAD 100 million in annual cost savings by end of 2025.
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Q3 2024 results reflected ongoing market softness, with sales and profitability down year-over-year. Strategic actions included asset divestments, operational restructuring, and a transformation plan targeting CAD 100 million in OPEX savings by end-2025.
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Q2 2024 saw an 8.8% year-over-year sales decline and a significant drop in adjusted EBITDA, driven by the CDK outage, inventory write-downs, and economic headwinds. Strategic initiatives now focus on core profitability, deleveraging, and a comprehensive review of non-core assets.