Eagers Automotive Ltd (ASX:APE) Full Year 2025 Earnings Call Highlights: Record Revenue and …

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Thu, February 19, 2026 at 4:01 PM GMT+9 4 min read

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**Total Revenue:** Increased by $1.9 billion to $13 billion in 2025.

**EBITDA:** Record $620.9 million, up $70.5 million or 12.8% from 2024.

**Underlying Profit:** Up 14.3% to $424.1 million.

**Net Margin:** Reported net margin of 3.3%, with a 4% return on sales for the underlying like-for-like business.

**Dividend:** Final dividend of $0.50 per share, maintaining a full-year dividend of $0.74 per share.

**Vehicle Sales:** Total vehicle sales increased by 36,000 units or 17.8%.

**New Vehicle Market Share:** Increased by 2.4% to 13.9% in Australia.

**Cost Base:** Reduced to 12.1% of sales, a historic low.

**Productivity:** Sales per person per annum increased to $1.48 million.

**Property Portfolio:** Valued at $900 million in Australia, expected to increase to $1.6 billion with CanadaOne investment.

**CanadaOne Auto Group Investment:** Expected to settle in Q1 2026, with CanadaOne's PBT at $248 million and a 4.4% net margin.

**Easy Auto 123 PBT:** Up 60% in 2025 compared to 2024.

**Debt and Cash Position:** Corporate debt net of cash on hand was $594 million as of December 31, 2025.

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Release Date: February 18, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Eagers Automotive Ltd (ASX:APE) achieved a record EBITDA of $620.9 million for 2025, marking a 12.8% increase from the previous year.

The company reported a significant revenue growth of $1.9 billion in 2025, with 68% attributed to organic growth.

Eagers Automotive Ltd maintained an industry-leading net margin of 3.3%, significantly outperforming the industry average of 1.2%.

The company increased its market share in the new car market to 13.9%, a notable achievement compared to other large markets like the US and UK.

Eagers Automotive Ltd's strategic investment in CanadaOne Auto Group is expected to contribute significantly to future growth, with an anticipated $5.6 billion in annualized revenue.

Negative Points

The company faced a $5 million impairment of its New Zealand operations due to continued economic challenges.

Despite strong financial performance, the company operates in a generally challenging net margin environment.

The Canadian market is experiencing uncertainty due to changes in tariff regimes, which could impact future performance.

Building costs in Australia are high, potentially slowing down the development of new facilities and impacting expansion plans.

The company is navigating a highly competitive environment with new entrants and existing OEMs reorganizing their footprints, which could affect future profitability.

 






Story Continues  

Q & A Highlights

Q: Can you elaborate on the ongoing process of optimizing operational expenses and the potential for further site consolidation? A: Keith Thornton, CEO: The process of optimizing operational expenses is a long-term strategy that has been in place for over a decade. We have reduced our site count by 110 since 2019, and this is part of a continuous journey to strengthen the business annually. The scale of our operations allows us to leverage economies of scale to drive down operational expenses. The dynamic environment in Australia, with new entrants and legacy brands reorganizing, provides opportunities to enhance productivity and reduce costs further.

Q: Are gross profit margins now normalized, and can we expect stability moving forward? A: Keith Thornton, CEO: Gross profit margins, particularly for new vehicle sales, are now in a more normalized supply environment. The industry has moved past the excess inventory phase post-COVID, and OEMs have balanced their inventory levels. This stability supports consistent margins. Our focus remains on selling more finance, car care, and insurance products while maintaining a lower cost base to achieve higher returns on sales margins.

Q: Can you provide insights into the recent performance of Canada One Auto Group and any trends observed? A: Keith Thornton, CEO: Canada One Auto Group has shown strong performance, driven by exceptional operational capabilities. The improvements in results reflect their ability to integrate acquisitions and enhance performance. The Canadian market is stable, and the team focuses on driving gross profit through better conversion rates and service results. The recent tariff changes with China are expected to have minimal impact on the market.

Q: What is the outlook for Eagers Automotive’s growth in ANZ, and how do you view the composition of organic growth and acquisitions? A: Keith Thornton, CEO: We anticipate material growth in ANZ, with January 2026 revenue up 8.3% year-on-year. We expect organic growth between $500 million and $1 billion this year, supported by potential acquisitions. The acquisition pipeline in Australia is active, and we are also exploring opportunities in Canada. The new acquisition regime in Australia may slightly delay acquisitions, but we remain confident in our growth prospects.

Q: How should we think about industry profit margins in Australia, given recent trends? A: Keith Thornton, CEO: The industry is undergoing a global transition with new entrants, particularly from China. OEMs are focused on creating profitable environments for their dealer partners to protect their market positions. We expect 2026 to be the final year of significant new brand entries and reorganization of existing OEM networks. This transition will stabilize margins as OEMs ensure dealer profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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