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AutoNation Inc.’s $900 Million Capital Push — Buybacks, Acquisitions & A Bigger Finance Bet!

AutoNation Inc. reported steady performance in its second quarter of 2026, reflecting both strengths and challenges across key segments. Adjusted earnings per share (EPS) improved modestly to $5.56 from $5.46 in the prior year, marking six consecutive quarters of year-over-year growth. Revenue held relatively flat year-over-year at approximately $6.93 billion, with sequential growth of 6% driven primarily by aftersales and wholesale parts segments offsetting headwinds from tariff-related impacts and lower battery electric vehicle (BEV) sales. Aftersales remains a central profit driver, accounting for nearly half of the company’s profits with record gross profits of $607 million. Customer pay revenue grew 7% year-over-year, supported by growth in wholesale parts revenue by 16%. Despite a slight margin compression due to increased wholesale parts mix, the company views these as temporary, attributing them to mix shifts and tougher comparisons. Technician headcounts increased modestly, aiming to support sustainable mid-single-digit growth in aftersales gross profit.