Financial Analysis

DEBT Non-Vehicle Long-Term Debt Non-vehicle long-term debt consisted of the following: Debt Description Maturity Date Interest Payable June 30, 2026 December 31, 2025 3.8% Senior Notes November 15, 2027 May 15 and November 15 $ 300.0 $ 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.45% Senior Notes January 15, 2029 January 15 and July 15 600.0 600.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 5.89% Senior Notes March 15, 2035 March 15 and September 15 500.0 500.0 Revolving credit facility July 18, 2028 Monthly Finance leases and other debt Various dates through 2051 364.2 353.9 3,814.2 3,803.9 Less: unamortized debt discounts and debt issuance costs (21.9) (24.4) Less: current maturities (74.9) (74.7) Long-term debt, net of current maturities $ 3,717.4 $ 3,704.8 Senior Unsecured Notes and Credit Agreement The interest rates payable on our 3.8% Senior Notes and 4.75% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. Under our amended and restated credit agreement, we have a $1.9 billion revolving credit facility that matures on July 18, 2028. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase t …

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In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue. Three Months Ended June 30, 2026 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 890.8 $ 1,170.2 $ 1,231.7 $ $ 3,292.7 Used vehicle 500.7 578.5 766.1 166.1 2,011.4 Parts and service 291.0 354.5 470.3 147.2 1,263.0 Finance and insurance, net 109.7 127.1 111.4 9.4 357.6 Other 0.9 2.8 0.2 1.2 5.1 $ 1,793.1 $ 2,233.1 $ 2,579.7 $ 323.9 $ 6,929.8 Timing of Revenue Recognition Goods and services transferred at a point in time $ 1,568.5 $ 1,962.8 $ 2,179.4 $ 227.3 $ 5,938.0 Goods and services transferred over time (2) 224.6 270.3 400.3 96.6 991.8 $ 1,793.1 $ 2,233.1 $ 2,579.7 $ 323.9 $ 6,929.8 Three Months Ended June 30, 2025 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 985.1 $ 1,129.6 $ 1,281.6 $ $ 3,396.3 Used vehicle 527.2 549.6 722.3 185.9 1,985.0 Parts and service 289.3 343.0 437.4 151.4 1,221.1 Finance and insurance, net 118.5 123.7 114.3 11.2 367.7 Other 0.4 2.4 0.2 1.3 4.3 $ 1,920.5 $ 2,148.3 $ 2,555.8 $ 349.8 $ 6,974.4 Timing of Revenue Recognition Goods and services transferred at a point in time $ 1,694.8 $ 1,870.6 $ 2,178.2 $ 245.4 $ 5,989.0 Goods and services transferred over time (2) 225.7 277.7 377.6 104.4 985.4 $ 1,920.5 $ 2,148.3 …

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STOCK-BASED COMPENSATION In March 2026, our Boards Compensation Committee approved a maximum annual grant to employees of 0.3 million RSUs under the 2017 Employee Equity and Incentive Plan (the 2017 Plan) including time-based RSUs, performance-based RSUs, and market-based RSUs. In January 2026, our Board, upon the recommendation of its Compensation Committee approved the AutoNation, Inc. 2026 Employee Equity and Incentive Plan (the 2026 Plan), subject to stockholder approval at our 2026 Annual Meeting of Stockholders (the 2026 Annual Meeting). Our stockholders approved the 2026 Plan at the 2026 Annual Meeting held on April 28, 2026. Following stockholder approval of the 2026 Plan, no additional awards may be granted under the 2017 Plan. The 2026 Plan provides for the grant of time-based and performance-based RSUs and restricted stock, stock options, stock appreciation rights, and other stock-based and cash-based awards to employees. As of June 30, 2026, a maximum of 2.2 million shares may be issued under the 2026 Plan. …

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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision. Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that a reporting entity can access at the measurement date Level 2 Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly Level 3 Unobservable inputs The following methods and assumptions were used by us in estimating fair value disclosures …

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GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets, net, consist of the following: June 30, 2026 December 31, 2025 Goodwill $ 1,422.8 $ 1,409.3 Franchise rights - indefinite-lived $ 1,238.5 $ 1,018.6 Other intangibles 30.1 30.1 1,268.6 1,048.7 Less: accumulated amortization (20.5) (19.8) Other intangible assets, net $ 1,248.1 $ 1,028.9 Goodwill and our franchise rights assets are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may exist. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our annual impairment testing as of April 30, 2026, for our Domestic, Import, Premium Luxury, AutoNation Finance, and Collision Center reporting units and determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts. For our Mobile Service reporting unit, we elected to perform a quantitative goodwill impairment test as of April 30, 2026, and no impairment charges resulted from this quantitative test. We elected to perform quantitative franchise rights impairment tests as of April 30, 2026, and no impairment charges resulted from these quantitative tests. See Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements for information about our annual impairment tests of goodwill and franchise rights.

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INCOME TAXES Income taxes payable included in Other Current Liabilities totaled $6.8 million and $2.6 million at June 30, 2026, and December 31, 2025, respectively. We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. With few exceptions, we are no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2021. Currently, the 2024 tax year is under examination by the IRS and tax years from 2021 to 2023 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. It is our policy to account for interest and penalties associated with income tax obligations as a component of Income Tax Provision in the accompanying Unaudited Condensed Consolidated Statements of Income.

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In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, that requires disclosure of the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense line item on the income statement. The accounting standard update also requires a qualitative description of other amounts included in each relevant expense line item on the income statement that are not separately disclosed. In addition, entities are required to disclose the nature and amount of selling expenses. The amendments in this accounting standard update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We do not expect the adoption of this accounting standard update to have an impact on our consolidated financial statements, but will require certain additional disclosures. Capitalization of Internal-Use Software In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, that amends the accounting guidance on the timing of capitalization of internally-developed software costs by removing references to software development stages, and provides guidance on how to …

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REVENUE RECOGNITION Disaggregation of Revenue The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue and expenses. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue. Three Months Ended June 30, 2026 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 890.8 $ 1,170.2 $ 1,231.7 $ $ 3,292.7 Used vehicle 500.7 578.5 766.1 166.1 2,011.4 Parts and service 291.0 354.5 470.3 147.2 1,263.0 Finance and insurance, net 109.7 127.1 111.4 9.4 357.6 Other 0.9 2.8 0.2 1.2 5.1 $ 1,793.1 $ 2,233.1 $ 2,579.7 $ 323.9 $ 6,929.8 Timing of Revenue Recognition Goods and services transferred at a point in time $ 1,568.5 $ 1,962.8 $ 2,179.4 $ 227.3 $ 5,938.0 Goods and services transferred over time (2) 224.6 270.3 400.3 96.6 991.8 $ 1,793.1 $ 2,233.1 $ 2,579.7 $ 323.9 $ 6,929.8 Three Months Ended June 30, 2025 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 985.1 $ 1,129.6 $ 1,281.6 $ $ 3,396.3 Used vehicle 527.2 549.6 722.3 185.9 1,985.0 Parts and service 289.3 343.0 437.4 151.4 1,221.1 Finance and insurance, net 118.5 123.7 114.3 11.2 367.7 Other 0.4 2.4 0.2 1.3 4.3 $ 1,920.5 $ 2,148. …

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SEGMENT INFORMATION At June 30, 2026, we had four reportable segments: (1) Domestic, (2) Import, (3) Premium Luxury, and (4) AutoNation Finance. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. Our Import segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Toyota, Honda, Hyundai, and Subaru. Our Premium Luxury segment is primarily comprised of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. The franchises in each of our Domestic, Import, and Premium Luxury segments also sell used vehicles, parts and automotive services, and automotive finance and insurance products. Our AutoNation Finance segment is comprised of our captive auto finance company, which provides indirect financing to qualified retail customers on vehicles we sell. Corporate and other is comprised of our non-franchised businesses, including AutoNation USA stores, collision centers, parts distribution centers, and auction operations, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses, goodwill and franchise right impairments, and other income items. The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which …

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SHAREHOLDERS EQUITY A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Shares repurchased 0.8 0.2 2.3 1.5 Aggregate purchase price (1) $ 157.0 $ 29.0 $ 457.0 $ 253.8 Average purchase price per share $ 199.84 $ 157.57 $ 200.59 $ 164.07 (1) Excludes the excise tax imposed under the Inflation Reduction Act of $1.6 million and $4.2 million for the three and six months ended June 30, 2026, respectively, and $0.3 million and $2.1 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, $618.9 million remained available under our stock repurchase limit authorized by our Board of Directors. We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends of such preferred stock. The following table presents a summary of shares of common stock issued and shares surrendered to AutoNation to satisfy tax withholding obligations, each in connection with the settlement of RSUs: Three Months Ended Six Months Ended June 30, June 30, (In actual number of shares) 2026 2025 2026 2025 Shares issued 803 77 321,752 318,572 Shares surrendered to AutoNation to satisfy tax withholding obligations 228 26 115,049 108,634 …

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