Canada's AutoCanada Q3 revenue slightly misses estimates

Overview

• Canada auto dealership group's Q3 revenue from contops rose 3%, slightly missing analyst expectations

• EPS from contops for Q3 was C$1.63 from a loss last year

• Adjusted EBITDA margin declined to 3.9% due to higher operating expenses

Outlook

• Company expects Canadian new vehicle demand to remain muted through the rest of 2026

• AutoCanada sees full-year Canadian industry sales at about 1.9 mln units, down 4% vs 2025

• Company continues to view 2026 as a transition year, requiring sustained operational improvements

Result Drivers

• USED VEHICLE SALES - Higher used vehicle volumes and improved inventory turnover contributed to revenue and gross profit growth, though profitability remained below historical levels as aged inventory was cleared

• NORMALIZED OPERATING EXPENSES - Higher normalized operating expenses, including restructuring charges, weighed on profitability and contributed to a lower adjusted EBITDA margin

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for AutoCanada Inc is C$24.50, about 12.7% below its November 11 closing price of C$28.07

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 10 - Canada's Adcore Q3 revenue falls amid shift to higher-margin business

• Nov 10 - GEN Restaurant Group Q3 revenue falls 3% on lower restaurant sales

• Nov 10 - Grocery Outlet Q3 adjusted EBITDA misses estimates, cuts FY guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)