Eagers Automotive’s third quarter trading update points to record 2026 revenue and Underlying Profit Before Tax despite significant headwinds across the Australian automotive market. The company guides to full year reported revenue from continuing operations in the range of $17.3 billion to $17.5 billion, representing at least 30 percent growth on the prior financial year. This growth comes as the broader industry faces elevated interest rates, persistent inflationary pressures and higher fuel prices that weigh on sentiment and increase the cost of doing business.
The margin story underpins investor confidence in the guidance. Despite industry-wide pressure on overall net return on sales margins, the company expects to achieve an Underlying return on sales in the range of 2.8 to 3.0 percent for the full year. This level of profitability in a challenged market demonstrates operational leverage and supports Eagers’ competitive positioning relative to peers. The company’s stated expectation to significantly outperform the broader industry speaks to the quality of its franchise relationships, execution capability and scale advantage.
Diversification into North America provides structural support to earnings resilience. CanadaOne Auto continues to outperform market expectations in the third quarter and represents approximately 30 percent of the company’s expected full year revenue. This geographic diversification acts as a hedge to Australian operations and management has indicated that further growth opportunities in North America are well progressed. The proven operating platform in Canada positions the company to sustain growth independent of domestic market cycles.
The Australian business remains resilient despite challenging conditions. Eagers maintains overweight positions with the top two selling OEMs and holds a significant 31 percent market share of NEV (plug-in) vehicles for the first six months ended 30 June 2026. The company’s national pre-owned business, easyauto, continues to represent a key strategic growth pillar and remains a focus for profitable scaling leveraging the company’s growing new car market share.
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Become an AR or CARInvestors will look to the full year results for confirmation of these guidance ranges and detail on how market conditions evolved through the final quarter. The trajectory of easyauto’s expansion, the progress of CanadaOne Auto’s growth initiatives in North America, and the company’s capital discipline in deploying capital for accretive returns will warrant close monitoring into 2027. This announcement is price sensitive and has been flagged as material by the ASX.
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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