AutoCanada (ACQ) Q3 2026 earnings summary

Executive summary

• Q3 continuing revenue rose 3.1% to $1,239.2M and gross profit increased 4.9% to $196.7M; continuing net income was $40.3M versus a $2.9M loss, while total net income was $45.1M.

• Continuing-operations Adjusted EBITDA fell to $48.4M from $58.1M; total-operations Adjusted EBITDA was $42.0M versus $52.3M.

• Dealership operations remained in transition as Collision Operations grew strongly; a strategic review of collision operations began in September.

Financial highlights

• Operating profit increased to $52.9M from $24.2M; Q3 results included a $21.6M net gain on asset disposals and a $17.0M gain on redemption liabilities.

• Continuing diluted EPS was $1.63 versus a loss of $0.14; gross margin was 15.9%, up 0.3 percentage points YoY.

• Normalized operating expenses before depreciation rose 12.1% to $141.6M, including $4.4M of restructuring charges; normalized expenses were 72.0% of gross profit versus 67.4%.

• Nine-month continuing revenue rose 1.8% to $3,846.6M, while gross profit fell 6.2% to $572.8M and Adjusted EBITDA declined 20.5% to $131.5M.

Outlook and guidance

• 2026 is viewed as a transition year; priorities include restoring vehicle-sales productivity and used-vehicle margins, improving fixed operations and F&I execution, and maintaining cost and working-capital discipline.

• Full-year Canadian light-vehicle sales are forecast at ~1.9M units, down ~4% versus 2025; demand is expected to remain muted amid affordability pressures and economic uncertainty.

• U.S. dealership and land-sale proceeds are intended to reduce debt and support a target Total Net Funded Debt to Bank EBITDA ratio of 2.0x–3.0x.