Strong results in aftersales and customer financial services support gross profits and earnings. Record Q4 after-sales gross profit, the AN Finance portfolio reached $2.2B, and adjusted free cash flow was $1.05B in 2025. Record growth in after-sales and expanding used vehicle operations are driving stable high-margin revenue, with investments in digital transformation, finance, and strategic acquisitions enhancing efficiency and positioning for sustained profit expansion.
Cyborg Score Rationale
According to 10 analysts, the average rating for AN stock is 'Strong Buy' with a 12-month stock price target of $237.6, representing 9.67% upside. Full year 2025 revenue was $27.6B (+3% YoY) with record Q4 after-sales gross profit and share repurchases totaling $785M. However, the company missed Wall Street revenue targets due to lower new vehicle sales, particularly in premium luxury and electrified vehicles, impacted by reduced OEM incentives and a 10% decline in same-store new unit sales.
Top Insights
Aftersales and customer financial services are offsetting weakness in new vehicle sales and supporting gross profits and earnings.
AN Finance portfolio reached $2.2B with adjusted free cash flow of $1.05B and $785M in share repurchases during 2025, demonstrating strong capital returns.
Lower new vehicle sales are driven by reduced OEM incentives for hybrid and battery electric vehicles, with a 10% decline in same-store new unit sales.
Recent acquisitions include luxury dealerships in Chicago and a Toyota store in Baltimore, with a Porsche center redevelopment, supporting strategic expansion.
Named Competitors
Lithia Motors — Major automotive dealer and competitor
Sonic Automotive — Large-scale automotive retailer
CarMax — Used vehicle and automotive retail
Asbury Automotive — Automotive retailer and services
Recent Developments
(February 2026) Q4 2025 earnings showed record after-sales gross profit and adjusted EPS of $5.08, beating estimates despite 4% revenue decline
(January 2026) Fair Holdings completed $227 million take-private of TrueCar
(December 2025) Acquired Jerry's Toyota in Baltimore for approximately $123 million in annual revenue
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