AutoNation, Inc. (AN)

AutoNation reported Q4 2025 revenue of $6.93 billion, falling short of expectations but with adjusted EPS of $5.08 exceeding estimates; the stock rose 3.91% pre-market. For the full year 2025, revenue increased 3% to $27.6 billion, and adjusted net income was up 8% to $757 million. AutoNation expanded its footprint by acquiring two luxury stores in Chicago and a Toyota store in Baltimore. Reports indicated resilience in the face of potential trade challenges. Q2 2025 earnings showed higher car prices helping AutoNation beat sales and profit estimates, leading to a stock rise.

Demand seasonality in the auto industry is durable and predictable, with January and February being the weakest months and late spring and early summer being stronger. Promotions around holidays often lead to temporary spikes in demand. The automotive retail industry is cyclical, and AutoNation is susceptible to these fluctuations. The company's revenue for the trailing 12 months has remained close to its level from three years ago, indicating a period of soft demand.

AutoNation, Inc., a Fortune 500 company founded in 1996 by Wayne Huizenga, is the largest automotive retailer in the United States, operating within the Consumer Cyclical sector and the Vehicles & Parts industry as a New Car Dealer. The company offers new and pre-owned vehicles from various domestic, import, and luxury brands. Its products and services include new and used vehicles, parts and automotive repair and maintenance, finance and insurance products, and vehicle acquisition programs.

AutoNation operates over 300 locations across 21 states in the United States, mainly in metropolitan markets within the Sunbelt region. As of March 31, 2021, the company owned and operated 315 locations. More recently, it was noted to operate over 240 dealerships and 52 collision centers, 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states. The company has expanded its footprint with acquisitions, such as Audi and Mercedes-Benz stores in Chicago in September 2025, and a Toyota store in Baltimore in December 2025.

AutoNation has maintained a strong brand reputation, being named an Industry Leader in the 2023 Automotive Reputation Report. The company reached 1 million 5-star reviews in June 2023, highlighting its focus on customer satisfaction. AutoNation actively leverages customer feedback and implements practices to improve customer experience. No significant negative events impacting AutoNation's brand reputation in the past year were found in the provided search results.

Institutional investors predominantly own AutoNation, holding 94.62% of the company's stock as of August 15, 2025. Cascade Investment, L.L.C., The Vanguard Group, Inc., and BlackRock, Inc. are major institutional owners. Individual insiders account for approximately 5.51% of ownership, with Edward Lampert being a notable individual owner.