CarMax (KMX) investor relations material

Executive summary

• Net revenues increased 19.5% year-over-year to $7.9 billion, driven by strong retail and wholesale unit sales growth.

• Retail used unit sales grew 13.8% and wholesale units rose 15.9% year-over-year, supported by price competitiveness and operational efficiencies.

• Earnings per share increased 81.3% year-over-year to $1.16, reflecting improved profitability and operational leverage.

• Leadership team strengthened with new appointments in digital/customer experience and strategy to accelerate digital and strategic initiatives.

• Announced plans to resume share repurchases in Q3 FY27, with $1.31 billion remaining under authorization.

Financial highlights

• Total net revenues: $7.9 billion, up 19.5% year-over-year.

• Combined retail and wholesale unit sales: 387,735, up 14.7% year-over-year.

• Gross profit: $799.5 million, up 11.4% year-over-year.

• SG&A expenses: $628.6 million, up 4.6%, but SG&A per unit improved by 8.8%.

• CarMax Auto Finance income increased 32.1% to $135.6 million, benefiting from lower loan loss provisions and gains on loan sales.

Outlook and guidance

• On track to achieve $200 million in FY27 SG&A exit rate savings.

• Plans to resume share repurchases in Q3 FY27, reflecting confidence in ongoing momentum and leverage.

• CAF FY27 income anticipated to be slightly lower than FY26, with nearly $1 billion in Tier 2 originations planned.

• Strategic update scheduled for November 3rd to provide further details on growth initiatives.