Edmonton-based AutoCanada Inc., a multi-location North American automobile dealership group, has reported its financial results for the three-month period ended March 31, 2026 showing a net loss from continuing operations of $3.3 million, compared to net income of $9.7 million in the prior year.
“We entered 2026 focused on stabilizing dealership performance, improving operational execution, and strengthening our balance sheet, and we made meaningful progress against those priorities during the quarter,” said Samuel Cochrane, Chief Executive Officer and Interim Chief Financial Officer of AutoCanada.
“While industry demand remained soft and profitability was impacted by expected pressure in used vehicle margins, we are encouraged by improving trends in used vehicle sales productivity, used vehicle profit per retail unit, operational efficiencies achieved through organizational changes implemented during the quarter, and the continued resilience of our collision platform.
“We also advanced several important strategic initiatives, including progress on the divestiture of our U.S. dealership portfolio, expansion of our collision operations, and the successful amendment and extension of our syndicated credit facility. We believe these actions position the Company to reduce leverage and create a stronger operational foundation as we move through 2026.”
First Quarter 2026 Financial Highlights
- Revenue from continuing operations was $1.19 billion as compared to $1.24 billion in the prior year
- Gross profit of $169.1 million, compared to $198.0 million in the prior year
- Gross profit percentage of 14.2%, compared to 16.0% in the prior year
- Net loss from continuing operations of $(3.3) million, compared to net income of $9.7 million in the prior year
- Diluted net loss per share from continuing operations of $(0.15), compared to diluted net income per share of $0.37 in the prior year
- Adjusted EBITDA from continuing operations of $31.0 million, compared to $43.0 million in the prior year
- Adjusted EBITDA margin of 2.6%, compared to 3.5% in the prior year
- Operating expenses before depreciation decreased (14.1)% year-over-year to $138.5 million
- Total Net Funded Debt to Bank EBITDA Ratio2of 3.96x at March 31, 2026
- Cash and available revolving credit capacity totaled approximately $357.5 million at quarter-end
The company said Canadian new light vehicle demand remained soft into the early part of the second quarter, extending trends observed in Q1 2026. Preliminary April industry data indicates a continued year-over-year decline in sales volumes (mid-single digit range), reflecting persistent macroeconomic headwinds, including elevated vehicle pricing, higher fuel costs, and ongoing consumer uncertainty. On a seasonally adjusted basis, national sales volumes remain below prior expectations and continue to normalize following demand pull-forward in early 2025, it added.
“Despite these conditions, management is encouraged by early signs of operational stabilization and sequential improvement across key dealership performance indicators. Since the appointment of new leadership in mid-February 2026, the Company has taken decisive actions to enhance its operating model, improve structural efficiencies, and refocus the organization on execution fundamentals. While momentum is building, management expects that achieving consistent target performance across all dealership operating categories will require sustained execution through the balance of 2026 and into early 2027, it said.
More from Retail Insider:
