Eagers Automotive (ASX:APE) detailed record full-year 2025 results in an earnings briefing led by CEO Keith Thornton and CFO Sophie Moore, highlighting strong revenue growth, expanding operational leverage, and progress on two major strategic partnerships that management described as “transformational.”
Record earnings and continued revenue expansion
Thornton said the company grew total revenue by AUD 1.9 billion in 2025, with growth comprised of 68% organic, 30% acquisition, and 2% greenfield. He added that since 2022, Eagers has grown revenue by AUD 4.4 billion, or more than 50%.
Management emphasized that profitability remained well above industry levels despite a “challenging net margin environment.” Thornton said underlying like-for-like return on sales was 4.0% and 3.3% on a reported basis. He noted reported margin improved from 3.0% in the first half to 3.5% in the second half, and compared that to Deloitte industry data showing 1.2% returns for the broader industry over the full year.
The board declared a final dividend of AUD 0.50 per share, keeping the full-year dividend at AUD 0.74 per share, matching the prior year’s record level.
Cost leverage and capital management
Moore said Eagers delivered record revenue of AUD 13 billion, exceeding a previously foreshadowed four-year growth target referenced in February 2025. She pointed to cost leverage as a key theme, with cost (excluding interest and depreciation) at 12.1% of turnover on a reported basis, described as a record low and below a long-term average of 13.8%.
Moore also discussed the gap between statutory and underlying results. Statutory profit before tax (PBT) was AUD 393.7 million versus underlying PBT of AUD 424.1 million. She said the AUD 30.4 million difference was primarily driven by items outside core operations, including AUD 20.6 million mainly tied to acquisition and capital raise costs related to Eagers’ Canadian investment, plus a AUD 5 million impairment of the New Zealand operation, which she said is now fully impaired due to continued economic challenges.
On the balance sheet, Moore said that as of Dec. 31, 2025, corporate debt net of cash was AUD 100 million, down from AUD 813.1 million at Dec. 31, 2024. Excluding proceeds from an entitlement offer linked to the Canada investment, she said corporate debt net of cash was AUD 594 million, still lower than the prior year.
Eagers’ Australian property portfolio was cited at AUD 900 million, and Moore said it would increase to approximately AUD 1.6 billion when combined with CanadaOne’s property portfolio. She added that Eagers held AUD 343 million of equity in the property portfolio and AUD 372 million in inventory at year-end. Liquidity capacity was described as supported by AUD 1.3 billion in committed core debt facilities.
Market share gains, new energy vehicle leadership, and productivity
Operationally, Thornton said total vehicle sales increased by 36,000 units, or 17.8%, while new vehicle sales rose to 177,000. He said Eagers sold 34% of Australia’s new energy vehicles—defined as battery electric vehicles and plug-in hybrids—supporting an increase in overall new car market share by 2.4% to 13.9%.
Thornton also stressed the importance of scale and the company’s “Next 100” strategy, which he said has helped drive the cost base down and sustain margin outperformance. He highlighted that sales per person per annum reached AUD 1.48 million, up from AUD 909,000 in 2019, which he framed as a 60% productivity improvement.
In the Q&A, Thornton responded to questions on operating expense leverage, clarifying that site exits of 110 sites were cumulative like-for-like since 2019, not in 2025 alone. He said the company views productivity and footprint optimization as a multi-year journey rather than a short-term initiative.
On gross profit margin dynamics, Thornton said it was a “fair assumption” that margins on the sale of new vehicles had largely bottomed out as supply conditions normalized following pandemic-era shortages and subsequent inventory imbalances. He added that Eagers’ outperformance is driven by higher attachment in finance and insurance and operating on a lower cost base.
CanadaOne and Mitsubishi partnerships; easyauto123 expansion
Thornton reiterated that 2025 results did not include a contribution from the company’s investment in CanadaOne Auto Group, which is expected to settle in the first quarter of 2026. He said the deal is progressing through completion obligations and is in the “final stages” of OEM consent.
Providing an updated view of CanadaOne’s performance for the calendar year 2025, Thornton said revenue, EBITDA, and PBT were at record levels. He cited CanadaOne calendar 2025 PBT of AUD 248 million with a 4.4% return on sales net margin. In follow-up questions, he said there is “no need for a pause” in Canada post-settlement because Eagers is investing alongside partners who run the business day-to-day, and he characterized OEM sentiment in Canada as strongly supportive of CanadaOne’s growth ambitions.
Moore said Eagers’ first offshore investment totaled AUD 1.043 billion and was funded through a mix of cash, debt, and new equity. Thornton also noted that Mitsubishi Corporation completed an equity placement to become a shareholder in Eagers, and on Dec. 1, 2025, Mitsubishi completed a 20% investment in easyauto123.
easyauto123 was repeatedly described as Eagers’ “biggest strategic growth opportunity.” Thornton said easyauto123’s total PBT in 2025 was up 60% versus the prior record in 2024, and he cited January 2026 as another “all-time record month.” He also described an expansion underway at the Hendra facility in Brisbane, including an additional 14,000 square meters in a neighboring property, with further expansion plans to be communicated during 2026.
Early 2026 trends and pro forma scale
Looking to 2026, Thornton said Australia and New Zealand are expected to be “largely a stable new car market,” shaped by competitive OEM activity and reorganization among legacy brands, with the transition “nearing an end.” He also said the interest rate environment is expected to be “largely flat” in the first half of 2026.
While emphasizing the company was not providing a forecast, Thornton shared a pro forma combining 2025 results for Eagers and CanadaOne, totaling AUD 18.7 billion in revenue, AUD 968.6 million in EBITDA, and AUD 671.8 million in PBT. He noted CanadaOne is expected to contribute nine months of earnings in 2026 rather than a full year.
In discussing near-term momentum, Thornton said January 2026 revenue was up 8.3% versus January 2025, and like-for-like order write was up 9%. He said order write and deliveries were “largely in line” in a more normal supply environment, while noting Toyota supply constraints were an exception, with strong order write but tighter near-term deliveries.
About Eagers Automotive (ASX:APE)
Eagers Automotive Limited, an automotive retail company, owns and operates motor vehicle dealerships in Australia and New Zealand. It operates in two segments, Car Retailing and Property. The Car Retailing segment offers a range of automotive products and services, including new and used vehicles, vehicle maintenance and repair services, vehicle parts, service contracts, vehicle brokerage services, vehicle protection products, and other aftermarket products. It also engages in facilitating financing for vehicle purchases through third-party sources; and motor auction and forklift rental business.
