Copart (CPRT) investor relations material

Leadership transition and strategic focus

• Incoming CEO Jay Adair emphasized a long-term commitment to leadership, aiming to drive growth for the next decade and not as an interim arrangement.

• The transition was a mutual decision with the outgoing CEO, maintaining strong internal relationships and continuity.

• Adair highlighted three core growth pillars: international expansion, domestic whole car growth, and technology services.

• The company is accelerating initiatives in these areas, requiring team expansion and organizational adjustments.

• No major operational overhaul is planned, but structural changes and new hires will support faster growth.

Financial position and capital allocation

• Nearly $4.2 billion in cash is available after $1.6 billion in recent share repurchases, with no significant debt.

• The strong balance sheet enables both M&A and organic investments across all growth pillars.

• Willingness to take on debt for the right strategic deal, despite a historical aversion to leverage.

• Land acquisition and development spending will slow, freeing resources for growth initiatives.

Market dynamics and growth outlook

• Total loss frequency has risen to 23.6%, up nearly five points in four years, driven by higher repair costs and strong auction returns.

• U.S. insurance ASPs reached an all-time high, up 4.1% year-over-year, with international buyers playing a key role.

• International unit volumes grew 5.9% and revenue 14.1% year-over-year in Q3 2026, with renewed focus on European expansion.

• Cyclical headwinds from insurance industry dislocation are seen as temporary, with normalization expected as rates stabilize.