AutoCanada (ACQ) investor relations material

Executive summary

• Transformation plan delivered $80M in annualized savings by Q2 2025, with the target raised to $115M by year-end, focusing on core Canadian operations and divesting unprofitable U.S. assets.

• Leadership transition underway as the company nears completion of its transformation and refocuses on Canadian operations.

• Strategic actions included divestitures, cost optimization, and centralization to improve efficiency and profitability.

Financial highlights

• Revenue from continuing operations declined 3.1% year-over-year to $1.34B, mainly due to lower used vehicle and F&I sales, partially offset by gains in new vehicles, parts, and collision repair.

• Gross profit from continuing operations increased 2.1% to $225.4M, with margin up 80 bps to 16.8%, driven by used vehicle and collision repair services.

• Adjusted EBITDA from continuing operations rose 92.4% year-over-year to $64.4M, margin expanded 240 bps to 4.8%.

• Net income from continuing operations was $18.9M, up from a loss in the prior year; diluted EPS increased to $0.72 from $0.12.

• Operating expenses before depreciation fell 9–10.1% year-over-year, reflecting restructuring and cost control.

Outlook and guidance

• Annualized cost savings target increased to $115M, with $48.5M net in-year savings expected by year-end after $29M restructuring costs.

• U.S. dealership divestitures expected to close in the second half of 2025, with proceeds to deleverage the balance sheet.

• Temporary softness in same store sales anticipated during transformation, with normalization expected post-transition.

• Focus remains on completing U.S. divestitures, reducing leverage to 2–3x Net Funded Debt/Adjusted Bank EBITDA, and optimizing Canadian footprint.

• Canadian new light vehicle market expected at 1.8–1.9M units in 2025, but tariffs may introduce uncertainty.