Eagers Automotive’s 2025 annual meeting material reveals a company at an inflection point, with record financial results paired alongside two major strategic partnerships that the Board considers transformational. Revenue reached $13.0 billion, up 16.5% year-on-year, driven by like-for-like growth of 12.6% across the existing portfolio. Yet the financial performance, while impressive, may be secondary to the strategic moves announced during the year: a 65% investment in Canadian dealership group CanadaOne Auto and an alliance with Mitsubishi Corporation, who became a significant shareholder and co-investor in easyauto123.
The underlying financial results support the Board’s confidence in the business trajectory. Underlying EBITDAI rose to $620.9 million from $550.4 million, while underlying operating profit before tax increased to $424.1 million from $371.2 million. Return on sale margins held steady at 3.3%, suggesting the company has expanded scale without sacrificing profitability. The statutory profit before tax came in at $393.7 million, and the company declared a fully franked dividend of 74 cents per share for 2025, matching the record levels set in 2023 and 2024.
The two partnership announcements effectively redraw Eagers Automotive’s growth strategy. The CanadaOne transaction, completed on 30 April 2026, gives the company a 65% stake in a fragmented but large dealership market where its operating model appears well-suited. Simultaneously, the partnership with Mitsubishi Corporation signals either a capital raise or strategic validation, or both: a globally respected automotive conglomerate with deep sector expertise taking a significant stake and co-investing in the company’s digital platform suggests conviction in management’s execution capability and market opportunity.
For shareholders, these moves merit careful assessment. On one hand, the capital deployment through CanadaOne and strategic alignment with Mitsubishi could unlock material value by accessing adjacent markets and leveraging international scale. On the other, the investments represent a material commitment of capital and management attention at a time when the domestic market appears in robust health. The record dividend, maintained despite these investments, underscores management’s confidence in cash generation, but investors should monitor execution risk as the company balances organic growth with geographic expansion.
The announcement is price sensitive under ASX listing rules and has been flagged as material by the Exchange. Investors should watch the phasing and performance of the CanadaOne integration, the nature and extent of Mitsubishi’s involvement in strategic decisions, and how management allocates capital between dividends, debt reduction, and further expansion in the remainder of 2026.
View the full ASX announcement (PDF)
About Eagers Automotive Limited (ASX: APE)
Eagers Automotive is the largest automotive retailing group in Australia, operating a diversified portfolio of motor vehicle dealerships across Australia and New Zealand. The company provides new and used vehicle sales, vehicle maintenance and repair services, parts sales, and various aftermarket products. With over 14% share of new-vehicle sales in Australia, it operates through two primary segments: Car Retailing and Property.
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