Key Highlights

  • Eagers Automotive reported record FY2025 Revenue of $13.0 billion, up 16.5% on the prior year, with like-for-like growth of 12.6% and underlying EBITDAI rising to $620.9 million from $550.4 million
  • The company completed a 65% Investment in CanadaOne Auto on 30 April 2026 and has formed a strategic alliance with Mitsubishi Corporation, which has joined as a significant Shareholder and co-invested in easyauto123
  • A further $630 million in estimated annual revenue has been added through two domestic acquisitions announced in April 2026: a 49% stake in Grand Motors Group and the Acquisition of Audi Centre Melbourne and Audi Richmond

 

Eagers Automotive Limited (ASX:APE) delivered what its board described as one of the most significant years in the company's recent history. At the Annual General Meeting on 27 May 2026, Chair and Chief Executive outlined financial results that established new records across revenue, Earnings, and Balance Sheet metrics, while flagging two strategic transactions that are expected to define the company's trajectory over the coming decade.

Revenue reached $13.0 billion in FY2025, a 16.5% increase on the prior year. This headline figure is supported by like-for-like growth of 12.6%, indicating that the expansion is not purely acquisition-driven but reflects genuine operational improvement across the existing dealership network. Underlying EBITDAI — earnings before interest, tax, Depreciation, Amortisation, and Impairment — rose to $620.9 million from $550.4 million in the prior year. Underlying Operating Profit Before Tax increased to $424.1 million from $371.2 million, with return on sale margins maintained at 3.3%. Statutory Profit Before Tax was $393.7 million.

CanadaOne Auto: The International Ambition Materialises

The October 2025 announcement of a 65% investment in CanadaOne Auto, a leading Canadian dealership group, represented Eagers' most significant step toward international Diversification. Canada offers a market that management has characterised as large, fragmented, and well-suited to the company's operating model — a description that mirrors the conditions in which Eagers built its dominant position in Australia.

The investment completed on 30 April 2026. CanadaOne Auto is led by Pat Priestner, a figure with significant standing in the Canadian automotive retail industry. The alignment between the two management teams has been cited by the Eagers board as a key Factor in the investment thesis — the value of a market entry strategy is significantly enhanced when the in-market operator shares the same operating philosophy and performance orientation.

Canada represents a materially different competitive environment from Australia. The domestic market is larger and more fragmented, with fewer multi-site operators at national scale. If Eagers can apply its consolidation playbook — centralised back-office functions, disciplined Capital allocation, and consistent customer experience standards — to a fragmented Canadian market, the long-term earnings contribution from CanadaOne Auto could be substantial.

Mitsubishi Corporation Alliance: Strategic Capital and Digital Acceleration

The second major strategic development of FY2025 was the formation of a strategic alliance with Mitsubishi Corporation, the Japanese conglomerate with deep automotive and industrial expertise. Mitsubishi Corporation has joined the Eagers Automotive register as a significant shareholder and has invested directly in easyauto123, the group's used-car retail platform.

The co-investment in easyauto123 by a global automotive industry participant of Mitsubishi Corporation's standing is a meaningful endorsement of the platform's growth potential. easyauto123 operates at the intersection of used-vehicle Retailing and digital customer experience — a segment that has attracted considerable capital and competitive attention both domestically and globally. The Mitsubishi Corporation relationship may also facilitate access to vehicle Supply, technology partnerships, or geographic expansion opportunities that would not otherwise be available to an Australian-focused automotive retailer.

FY2026: Acquisitions Continue, Integration Underway

The pace of activity in FY2026 has continued from the elevated levels of FY2025. In April 2026, Eagers announced a 49% strategic investment in Grand Motors Group, which operates across the Gold Coast and metropolitan Sydney, and the acquisition of Audi Centre Melbourne and Audi Richmond from Zagame Automotive Group. Together, these transactions add approximately $630 million in annual revenue to the group's footprint.

Eagers has a documented history of successfully integrating acquisitions at scale. The management team has emphasised that integration capability is one of the company's core competencies — a claim supported by the continued improvement in like-for-like performance metrics across the existing network even as acquisition activity has remained elevated. The current challenge is managing the simultaneous integration of the domestic acquisitions with the first year of CanadaOne Auto ownership.

Shareholder Returns and Capital Discipline

The board approved a total Dividend for FY2025 of 74.0 cents per share, fully franked — matching the records set in both 2023 and 2024. This consistency in dividend delivery, even in a year of elevated acquisition activity and capital deployment, reflects the cash generation characteristics of the core dealership Business and the board's confidence in the sustainability of current earnings levels.

Return on sale Margin was maintained at 3.3% despite the significant revenue growth, which is a meaningful indicator of operational discipline. Expanding revenue while holding margins requires careful management of cost structures across a geographically dispersed network — a challenge that Eagers appears to be navigating effectively.

Conclusion

Eagers Automotive enters the second half of 2026 from a position of record financial performance and two new international growth platforms — CanadaOne Auto and the Mitsubishi Corporation alliance — that did not exist 12 months ago. The domestic acquisition pipeline has continued to move, adding further scale to the Australian network. The key questions for investors relate to integration execution across multiple concurrent workstreams, the early performance indicators from CanadaOne Auto, and whether the like-for-like growth rate in Australia can be sustained in a consumer environment that remains sensitive to Interest Rate and cost-of-living pressures.