Eagers Automotive expects record revenue despite market headwinds

Eagers Automotive expects record revenue and underlying profit before tax in 2026 despite difficult trading conditions in the Australian new vehicle market.

The ASX-listed automotive retailer forecasts full-year revenue from continuing operations of between A$17.3b and A$17.5b, an increase of at least 30% on the previous financial year.

Continuing operations exclude its New Zealand franchised automotive businesses which were sold to Armstrong’s in October.

Eagers says its Australian operations were affected during the third quarter by high interest rates, persistent inflation and rising fuel prices.

“These conditions weigh on sentiment whilst adding pressure to the cost of doing business,” the company says.

“Eagers Automotive’s performance has remained resilient, despite these challenges.”

Assuming third-quarter conditions continue through the end of December, Eagers expects an underlying return on sales of between 2.8% and 3% for the full year.

The company says trading pressures across parts of the Australian automotive market are expected to reduce industry-wide net returns, but it expects to outperform the broader sector.

Growth from CanadaOne Auto is helping offset weaker conditions in Australia, with the North American operation delivering a third-quarter result above expectations.

CanadaOne Auto is expected to account for about 30% of Eagers’ full-year revenue and provides geographic diversification from its Australian operations.

Eagers says further North American expansion opportunities are well progressed.

Its Australian business includes significant representation of the country’s two highest-selling vehicle manufacturers and held a 31% share of the plug-in new energy vehicle market during the first half of 2026.

The company is also continuing to expand easyauto, its national pre-owned vehicle business.

“We continue to leverage the scale, quality and diversity of our OEM portfolio, whilst utilising our growing new car market share to accelerate the profitable scaling of our easyauto platform,” Eagers says.

It says its geographic diversification, Australian scale, growing used vehicle business, productivity initiatives and capital discipline leave it positioned to deliver further growth.