Company Reports

Eagers Automotive's interim 2026 underlying net profit rose 13% to AUD 139 million on the back of 24% revenue growth to AUD 8 billion. The recent CanadaOne acquisition contributed AUD 1 billion of sales in its first two months, while Australia and New Zealand sales grew 8%.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now commands a share of about 16%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Eagers Automotive announced a 49% stake in GMG's dealer operations in Sydney and the Gold Coast, which generated about AUD 490 million in gross revenue last year. The company is also acquiring two Audi dealerships in Melbourne, with combined sales of about AUD 140 million. Shares jumped 9%.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now commands a share of about 14%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Eagers Automotive reported an underlying net profit of AUD 262 million in 2025, 13% higher than last year. The result was driven by a 17% increase in revenue, with a full-year contribution from acquisitions made in 2024 amid essentially flat industry new-car sales in 2025.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now boasts share of about 14%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Eagers Automotive announced a 65% investment in CanadaOne Auto for about AUD 1 billion, comprising AUD 386 million in scrip and AUD 658 million in cash. The acquisition will be partly funded by an entitlement offer of AUD 452 million and a separate placement to Mitsubishi Corporation.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now boasts share of about 14%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Eagers Automotive's interim 2025 underlying profit before tax lifted 8% year on year to AUD 198 million. Revenue grew to AUD 6.5 billion as acquisitions came online, BYD grew strongly, and the existing dealership channel grew organically. Shares rose 12% intraday.

New car sales in Australia are declining. The latest data from the Federal Chamber of Automotive Industries has calendar year-to-date new car volumes in Australia about 5% below last year. This is a sharp deceleration from May 2024, when year-to-date new car sales were up about 12%.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now boasts share of about 12%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Eagers Automotive reported 2024 underlying net profit of AUD 232 million, 17% below the year prior. Revenue lifted 14% to AUD 11 billion, but gross margins were lower. Costs of doing business were also higher, including employee costs, interest expense, and depreciation and amortization.

New car sales growth is slowing dramatically, weighing on dealers like Eagers Automotive. The latest data from the Federal Chamber of Automotive Industries shows new vehicle sales in Australia are up about 1% calendar year-to-November 2024, compared with a 13% lift in calendar 2023.

Boom times in the Australian auto market have come to an end, and Eagers Automotive, Australia’s largest dealer, is not immune. While sales growth remained firm in the first half of calendar 2024, up 13% on the previous corresponding period—roughly in line with Australian new-car sales—competition is returning. To unwind excess inventory, promotions have accelerated, putting pressure on profitability across the sector. First-half 2024 underlying profit before tax fell 13% on the PCP to AUD 183 million.

We forecast Eagers Automotive to continue to capture share in the highly fragmented auto retailing market. We estimate it now boasts share of about 11%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Following a few favorable years, conditions are rapidly normalizing for narrow-moat Eagers Automotive. Supply constraints during the pandemic have abated and demand for new vehicles is declining amid cost-of-living pressures. The order bank is also drawing down. Year-to-date new vehicle volumes are up 14% on 2023, according to the Federal Chamber of Automotive Industries. Consequently, competition among dealers has returned. Along with inflationary pressures on Eagers’ cost base—much of it labor—profitability is taking a hit.

We forecast that Eagers Automotive to continue to capture market share in the highly fragmented auto retailing segment. We estimate Eagers now boasts a market share of about 11%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 3%-4%.

Narrow-moat Eagers Automotive's calendar-2023 revenue grew 15% to AUD 10 billion, near the top end of guidance and about 3% ahead of our forecast. This was driven mostly by record new-car sales in Australia, up 13% on 2022 to 1.2 million vehicles. Manufacturing halts, freight issues, and semiconductor shortages, which plagued shipments in the aftermath of the pandemic, are abating. New vehicle sales have risen despite pressure on household finances as the order backlog is filled.

We forecast that Eagers to continue to capture market share in the highly fragmented auto retailing segment. We estimate Eagers now boasts a market share of about 11%. As the largest dealer in the market, Eagers can centralize back-office operations and fractionalize these fixed costs over a significantly larger volume and revenue base, affording a durable cost advantage over smaller peers. Accordingly, we estimate the company earns gross and net profit margins ahead of smaller competitors. We believe Eagers' extensive size and scale should allow it to deliver midcycle profit before tax margins of about 4%.

We think narrow-moat Eagers Automotive is set to report that 2023 was another strong year. Data from the Federal Chamber of Automotive Industries show the new vehicle market has been on a tear, with a record 1.2 million units sold in 2023, a 13% improvement on 2022. The supply chain issues that plagued shipments in the aftermath of the pandemic, underpinned by manufacturing halts, freight issues, and semiconductor shortages, are abating. As the unprecedented order backlog is filled, sales have continued to climb despite heightened budgetary pressure on consumers.