Eagers Automotive delivered record $13 billion revenue and underlying EBITDAI of $620.9 million in 2025, boosted by strategic investments in CanadaOne Auto and Mitsubishi Corporation. The company’s 2026 outlook is positive, supported by strong order books and easing supply constraints.
- Record $13.0 billion revenue in FY2025, up 16.5%
- 65% acquisition of Canadian dealership group CanadaOne Auto completed
- Strategic alliance with Mitsubishi Corporation, including 20% stake in easyauto123
- 49% stake in Grand Motors Group and acquisition of Audi dealerships in Melbourne
- Positive 2026 outlook with strong order bank and expected record earnings
Record Financial Performance and Strategic Expansion
Eagers Automotive (ASX:APE) marked 2025 as a landmark year, posting record revenue of $13.0 billion, a 16.5% increase on the prior year, alongside an underlying EBITDAI of $620.9 million, up 12.8%. The company maintained its return on sales margin at 3.3%, underscoring operational efficiency amid a challenging automotive retail environment.
Beyond the numbers, Eagers completed a transformative 65% acquisition of CanadaOne Auto, a leading Canadian dealership group, effectively expanding its footprint into North America. This deal, finalised on 30 April 2026, boosts Eagers’ pro-forma revenue to approximately $18.7 billion and adjusted EBITDAI near $969 million, positioning it among the world’s largest automotive retail groups. The CanadaOne founder also acquired a 5% stake in Eagers’ easyauto123 platform, signalling strong alignment between the two entities. This strategic move was preceded by a heavily supported $452 million capital raise to fund the acquisition, reflecting shareholder confidence in the company’s growth trajectory 65% stake in CanadaOne Auto.
Partnership with Mitsubishi Corporation Validates Growth Platforms
Eagers forged a strategic alliance with Mitsubishi Corporation, which took a significant equity position in Eagers and a 20% stake in easyauto123, the company’s scaled used vehicle platform. Mitsubishi’s A$70 million investment in easyauto123 validates the platform’s rapid growth and margin outperformance, with underlying profit before tax up 40% year-on-year through April 2026. This partnership promises access to global automotive expertise and collaborative opportunities across franchised retail, financial services, and emerging mobility models.
easyauto123’s expansion includes the enlargement of its flagship Brisbane site to over 29,000 sqm, embodying its ambition to become the ‘Bunnings of used cars’. The alliance with Mitsubishi also underpins Eagers’ broader Next100 strategy, which focuses on sustainable, quality growth rather than scale for scale’s sake Mitsubishi strategic alliance.
Domestic Growth and Portfolio Optimisation
Domestically, Eagers is expanding selectively, acquiring Audi Centre Melbourne and Audi Richmond from Zagame Automotive Group, adding approximately $140 million in annual turnover and strengthening its premium segment presence. Additionally, a 49% strategic investment in Grand Motors Group, a multi-brand dealership operator across the Gold Coast and Sydney, further diversifies Eagers’ portfolio. This joint venture leverages Eagers’ scale and operational capabilities, creating synergies across franchised retail and easyauto123 platforms.
The company’s disciplined capital allocation is evident in these targeted acquisitions, which complement its existing portfolio of 54 OEM partners and leadership in new energy vehicles, where it commands over one-third market share in Australia. Eagers also continues to invest in sustainability initiatives, including solar panel rollouts and environmental remediation, alongside community support programs.
Outlook Supported by Strong Order Book and Supply Improvements
Looking ahead, Eagers projects a record 2026, underpinned by a robust order bank which has grown 70% since December 2025, and order intake exceeding deliveries by over 29%. Supply constraints, which have deferred some deliveries, are expected to ease in the second half, supporting an uplift in sales. The company anticipates first half underlying profit before tax in line with or slightly ahead of 2025, with CanadaOne Auto contributing two months of trading. The full half-year contribution from CanadaOne and recent acquisitions will bolster second half results.
Despite ongoing macroeconomic and geopolitical uncertainties, Eagers’ diversified platform, strategic partnerships, and operational discipline position it to navigate the evolving automotive retail landscape effectively. The company’s margin outperformance, with a 2.1% gap above industry averages in 2025, reflects structural advantages rather than cyclical gains.
Board member David Blackhall retired at the AGM after over six years of service, recognized for his significant contribution including chairing the Audit & Risk Committee. His departure marks the end of an era but the company remains well-positioned with a strong leadership team and engaged shareholders Canadian acquisition completion capital raise support.
Bottom Line?
Eagers’ bold international expansion and strategic partnerships underpin a structurally stronger business poised for record earnings, though integration and supply chain risks warrant close monitoring.
Questions in the middle?
- How will Eagers integrate CanadaOne Auto’s operations to sustain margin outperformance?
- What impact will easing supply constraints have on delivery timing and profitability in 2026?
- Can the partnership with Mitsubishi unlock new revenue streams beyond current automotive retail models?