Eagers sees record revenue as CanadaOne cushions Australian pressure

Record revenue forecast despite softer market conditions

Eagers Automotive Limited (ASX:APE) expects both revenue and underlying profit before tax to reach record levels in 2026, even as higher interest rates, persistent inflation and elevated fuel prices weigh on Australian automotive demand.

The dealership group forecast continuing-operations revenue of $17.3 billion to $17.5 billion for the year ending 31 December, representing growth of at least 30% on the prior financial year. The guidance is conditional on third-quarter trading conditions persisting through the end of the year, rather than an assumption that the market will improve.

Margin pressure contained by scale and diversification

Eagers said industry-wide pressure on net return on sales would continue across Australian automotive segments. Even so, it expects an underlying return on sales of 2.8% to 3.0% for the full year, which it described as a significant outperformance relative to the broader industry.

The result will be shaped in part by the group’s international expansion. CanadaOne Auto, in which Eagers completed a 65% acquisition earlier this year, continues to outperform the market and delivered third-quarter performance above expectations. The Canadian business represents about 30% of expected full-year revenue and is described by Eagers as a hedge to its Australian operations. Further North American growth opportunities are reportedly well progressed.

Australian platform leans on OEM exposure and easyauto

In Australia, Eagers is relying on the scale and diversity of its OEM portfolio, including overweight positions with the two highest-selling manufacturers. It also reported a 31% share of the new energy vehicle market, defined in the announcement as plug-in vehicles, during the six months ended 30 June 2026.

The company singled out its national pre-owned vehicle business, easyauto, as a key growth pillar. That mix of established dealership earnings, pre-owned vehicles and CanadaOne gives the group several operating engines, although the filing does not quantify the contribution of each business to the expected record underlying profit before tax.

New guidance carries important comparability caveats

The forecast applies to continuing operations and excludes Eagers’ franchised automotive operations in New Zealand, which were divested in October. Its underlying measures are also non-financial measures that have not been reviewed by external auditors, meaning the eventual statutory result and the reconciliation of significant items remain important details for the full-year release.

For now, Eagers has offered a strong revenue signal without claiming immunity from the sector’s margin squeeze. The key test is whether CanadaOne and the Australian group’s scale can preserve the forecast 2.8% to 3.0% return on sales as fourth-quarter trading unfolds.