AutoCanada Q2 net income down 36 per cent as revenue rises

AutoCanada reported second‑quarter revenue of $1.42 billion, a six per cent increase from last year. Gross profit decreased 8.1 per cent to $207.1 million, reflecting lower contributions from new vehicles, used vehicles and parts and service.

Net income from continuing operations was $12.1 million, down 36 per cent from $18.9 million a year earlier. Diluted earnings per share were $0.46. Adjusted EBITDA declined 19 per cent to $52.1 million.

New retail vehicle sales fell eight per cent, while used retail volumes rose 10 per cent. Used vehicle gross profit per unit decreased to $587, compared with $1,774 last year. The company reported improvements in used‑vehicle turnover and sales productivity.

Collision operations delivered higher margins, with gross profit up 7.1 per cent and gross profit percentage increasing to 48.7 per cent. Recent acquisitions in Calgary, Thunder Bay and Stratford contributed to the segment’s performance.

The U.S. dealership divestiture has produced $106 million in proceeds so far, with the company expecting to reach $115 million to $130 million.

AutoCanada CEO Samuel Cochrane said industry demand remained subdued and used‑vehicle margins were under expected pressure, but that the company saw improvements in used‑vehicle sales productivity, profit per unit and operational efficiencies from recent organizational changes.

“We also advanced several important strategic initiatives, including progress on the divestiture of our U.S. dealership portfolio, expansion of our collision operations, and the successful amendment and extension of our syndicated credit facility. We believe these actions position the Company to reduce leverage and create a stronger operational foundation as we move through 2026,” he said.