AutoCanada Inc., a multi-location North American automobile dealership group, recently reported its financial results for the three-month period ended December 31, 2025.
Key highlights:
- Revenue from continuing operations was $1,116.6 million as compared to $1,265.8 million in the prior year, a decrease of $149.2 million
- Net loss for the period from total operations was $(14.6) million as compared to $(38.4) million in the prior year
- Net (loss) income from continuing operations was $(2.3) million as compared to $9.8 million in the prior year
- Net loss from discontinued operations was $(12.2) million as compared to net loss of $(48.2) million in the prior year
- Diluted net (loss) income per share from continuing operations of $(0.06) as compared to $0.45 in the prior year
- Adjusted EBITDA from total operations was $26.3 million as compared to $47.1 million in the prior year
- Adjusted EBITDA from continuing operations was $32.7 million as compared to $54.4 million in the prior year
- Adjusted EBITDA from discontinued operations was $(6.4) million as compared to $(7.3) million in the prior year
- Total Net Funded Debt to Bank EBITDA Ratio2 Increased from 3.40x as at September 30, 2025 to 3.44x as at December 31, 2025
“Fourth quarter performance was shaped by a more challenging market backdrop. Demand was affected by prior-period pull-forward activity, including the sunset of Canadian EV tax credits that benefited the fourth quarter of 2024 and tariff-related policy changes that drove stronger demand in the first half of 2025. At the same time, affordability pressures persisted and industry gross profit per unit declined as vehicle availability improved and pricing normalized. Industry wide performance was impacted in the fourth quarter by these dynamics, which have also created tough comparisons as we entered 2026,” said Samuel Cochrane, CEO.
“Against that backdrop, AutoCanada navigated a period of significant internal change as we progressed through a leadership transition while simultaneously completing our cost transformation. Over the course of 2025, we achieved approximately $115 million in annualized run-rate cost savings.
“The pace and scope of the transformation created temporary operational disruption at the store level in the second half of 2025, impacting sales productivity and performance relative to the broader market. We have identified the issues, put new operating leadership in place, and are focused on closing the gap to market through 2026.”
AutoCanada’s Canadian Operations segment operates 64 franchised dealerships in Canada, comprised of 23 automotive brands across 8 provinces as well as three independent used dealerships. AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen vehicles. In 2025, its Canadian dealerships sold approximately 71,000 new and used retail vehicles.
In addition, AutoCanada’s Canadian Operations segment operates 33 collision centres, supported by 26 Original Equipment Manufacturer certifications covering 37 vehicle brands.
AutoCanada’s U.S. Operations segment, operating as Leader Automotive Group, operates 12 franchised dealerships comprised of 9 brands, in Illinois, USA. Leader currently sells Audi, Hyundai, Kia, Lincoln, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen branded vehicles. In 2025, its U.S. dealerships sold approximately 8,000 new and used retail vehicles.
“Looking ahead, our priorities for 2026 are clear: stabilizing and improving our automotive retail operations, continuing to expand our collision platform, strengthening the support our head office provides to dealerships and collision centres, recruiting and retaining a high-performing team, and maintaining a lean and efficient cost structure,” said Cochrane.
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