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# AutoNation Net Income Falls 25% To $162.3 Million, But Adjusted EPS Rises And Board Adds $1 Billion To Buyback
- URL: https://www.bullished.co/autonation-net-income-falls-25-to-162-3-million-but-adjusted-eps-rises-and-board-adds-1-27047ab1/
- Published: 2026-10-30T11:20:57.000Z
- Updated: 2026-10-30T11:20:57.000Z
- Description: Adjusted earnings per share rose for a seventh straight quarter as shares outstanding fell 9% year to date and car sales volumes dropped.
- Author: Matteo Parrino
- Tags: Deals, AN, Industry: Consumer Discretionary

[AutoNation](https://www.bullished.co/tag/an/), which sells new and used vehicles through franchised dealerships across the U.S., said third-quarter [net income fell 25% to $162.3 million](https://www.sec.gov/Archives/edgar/data/0000350698/000162828026068426/anearningsrelease93026ex991.htm?ref=bullished.co), even as adjusted earnings per share edged up to $5.11 from $5.01\. The board also approved another $1 billion for share repurchases, the company said Friday.

## Fewer cars, fewer dollars, more per share

Diluted earnings per share were [$4.87](https://www.businesswire.com/news/home/20261029377707/en/AutoNation-Reports-Third-Quarter-2026-Results?ref=bullished.co), down from $5.65 a year earlier. Adjusted net income fell 11% to $170.3 million, so the per-share gain, the company's seventh consecutive quarter of year-over-year growth, came from a smaller share count: diluted weighted average shares were 33.3 million against 38.1 million.

Revenue of [$7,010.3 million](https://www.businesswire.com/news/home/20261029377707/en/AutoNation-Reports-Third-Quarter-2026-Results?ref=bullished.co) was about flat against $7,037.4 million. Operating income dropped 16% to $314.6 million. Same-store new vehicle retail unit sales fell 5% to 62,356, and used vehicle retail units fell 6% to 63,703.

Parts and service moved the other way. Revenue in that line rose 5.2% to $1,290.0 million, and the company called it record After-Sales gross profit. AutoNation Finance, its auto lending arm, earned $15.4 million, up from $1.5 million, and its loan portfolio grew more than 40%.

## Buybacks absorb most of the cash

AutoNation bought back 3.1 million shares for $620 million in the first nine months, an average of $198.68 a share. Through October 28 the total reached 3.4 million shares for $668 million. CEO Mike Manley said the company used nearly 85% of adjusted free cash flow on repurchases, cutting shares outstanding 9% year to date.

Adjusted free cash flow for the nine months was $739.0 million, or 141% of adjusted net income, up from 128% a year earlier. Manley said the current environment "strongly favors allocating capital toward share repurchases."

The additional $1.0 billion authorization came in October. As of October 28, $1.4 billion remained available.

## Debt and liquidity after the borrowing

At September 30, AutoNation had $1.5 billion of liquidity, including $51 million in cash. Non-vehicle debt stood at $4.3 billion, and the covenant leverage ratio was 2.7 times.

In September the company expanded its revolving credit facility to $2.0 billion and extended its maturity to September 14, 2031\. In October it raised its commercial paper program to the same size.

Management holds its third-quarter conference call at 9:00 a.m. Eastern on Friday.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — AUTONATION, INC. (AN)](https://www.sec.gov/Archives/edgar/data/0000350698/000162828026068426/an-20261030.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit anearningsrelease93026ex991.htm — AUTONATION, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000350698/000162828026068426/anearningsrelease93026ex991.htm?ref=bullished.co) — SEC EDGAR
- [AutoNation Reports Third Quarter 2026 Results](https://www.businesswire.com/news/home/20261029377707/en/AutoNation-Reports-Third-Quarter-2026-Results?ref=bullished.co) — businesswire.com

### More on AutoNation

- [AutoNation Seats Goodyear CEO Mark Stewart As Tenth Director, An 8-K Shows](https://www.bullished.co/autonation-seats-goodyear-ceo-mark-stewart-as-tenth-director-an-8-k-shows-5db193ef/)

[All AutoNation (AN) coverage →](https://www.bullished.co/tag/an/)