Eagers Automotive posts record 1H26 earnings on strong Canadian expansion

The Eagers Automotive Ltd (ASX: APE) share price could be in focus after the company delivered a record half-year result, with revenue rising 24% to $8.05 billion and net profit after tax up 23% to $165.2 million.

What did Eagers Automotive report?

• Revenue rose 24% to $8,053.5 million compared to 1H25
• Statutory net profit after tax increased 23% to $165.2 million
• Underlying EBITDA up 23% to $364.6 million
• Ordinary interim dividend up 4% to 25 cents per share, fully franked
• Liquidity at $2.61 billion and net debt at $674.9 million as at 30 June 2026
• Acquisition of CanadaOne Auto Group contributed $40.5 million in profit before tax across two months

What else do investors need to know?

Eagers Automotive entered the Canadian market by acquiring a 65% stake in CanadaOne Auto Group, which made an immediate positive impact on group results and expanded the company’s international footprint. The strategic investment saw the company issue exchangeable shares as partial consideration, strengthening the balance sheet and broadening shareholder alignment.

In Australia, Eagers increased its market share in new vehicles, reaching 15.9%, up from 13.8% a year ago. The group also signed a non-binding agreement to divest its franchised automotive business in New Zealand—retaining the easyauto123 operations—to redeploy capital into other growth initiatives.

What’s next for Eagers Automotive?

Eagers Automotive expects a full second-half contribution from CanadaOne Auto Group, with further opportunities for organic and acquisitive growth in North America. The company remains focused on optimising its partner portfolio, expanding its independent pre-owned vehicle business, and leveraging its unique scale and brand partnerships to outperform industry benchmarks.

Management cited a disciplined approach to capital allocation and cost management, aiming for sustainable, industry-leading returns. While mindful of current economic conditions and higher interest rates, the board remains optimistic about growth prospects in both the Australian and Canadian markets.

Eagers Automotive share price snapshot

The Eagers Automotive share price has modestly outperformed the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of over 6%.

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The post Eagers Automotive posts record 1H26 earnings on strong Canadian expansion appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.