Eagers Automotive guides to record 2026 revenue of $17.3-$17.5 billion
Eagers Automotive has issued a trading update for the year ending 31 December 2026, expecting full year reported revenue from continuing operations of $17.3 billion to $17.5 billion, up at least 30% on the prior financial year. The guidance assumes third quarter market conditions continue through to year end.
Full year revenue and Underlying Profit Before Tax are both expected to be records for the Company in 2026. Eagers Automotive also expects an Underlying return on sales of 2.8% – 3.0% for the full year, and says it expects to “significantly outperform” the broader industry.
Continuing operations comprise all operations other than the Group’s franchised automotive operations in New Zealand, which were divested in October 2026.
For investors, the guidance points to record results despite a softer Australian market, with earnings supported by more than one part of the business.
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Australian headwinds and how Eagers is holding up
Third quarter conditions
Third quarter trading in Australia was impacted by industry-wide headwinds reflecting broader macroeconomic conditions. These included the elevated interest rate environment, persistent inflationary pressures and higher fuel prices.
The Company said these conditions weigh on sentiment while adding pressure to the cost of doing business. It expects the trading headwinds across segments of the Australian automotive market to result in industry-wide pressure on overall net return on sales margin.
Where the resilience comes from
Eagers Automotive said its performance has remained resilient despite these challenges. The Company cited three key components behind its results:
- CanadaOne Auto diversification: earnings diversification into the North American market via the CanadaOne Auto investment, which represents approximately 30% of expected revenue on a full year basis and acts as a hedge to the Australian operations.
- Australian scale and quality: overweight positions with the top two selling OEMs and 31% market share of NEV (plug-in) vehicles for the first six months ended 30 June 2026.
- easyauto: the fast-growing national pre-owned business, which remains a key strategic growth pillar.
The Company is also using its growing new car market share to accelerate the profitable scaling of easyauto.
The half-year results showed the same pattern at a smaller scale, with underlying return on sales of 3.1% and easyauto123 growing volume 30% while the used car market fell 6%.
Guidance at a glance
The table below summarises the 2026 guidance in the trading update.
| Metric | 2026 guidance | Basis |
|---|---|---|
| Revenue from continuing operations | $17.3 billion to $17.5 billion | Reported, up at least 30% on prior financial year |
| Underlying return on sales | 2.8% – 3.0% | Full year 2026 |
| Revenue and Underlying Profit Before Tax | Both expected to be records | Full year 2026 |
Underlying figures are non-financial measures and have not been subject to review by the Company’s external auditors. Underlying return on sales is Underlying Operating Profit Before Tax divided by Revenue from continuing operations.
Understanding return on sales in auto retail
Return on sales measures profit as a share of revenue. A business can grow revenue and still earn a thinner margin if costs rise faster than sales, which is why margin matters when revenue is rising in a tough market.
- Revenue growth: shows how much a business is selling.
- Return on sales: shows how much of that revenue is retained as profit.
- Diversification: earnings from a second geography can act as a hedge, helping offset weakness in one market.
CanadaOne Auto and the North American growth runway
CanadaOne Auto continues to outperform the market, delivering third quarter performance above expectations. The Company described it as a proven operating platform with significant opportunities for expansion in North America.
The 65% CanadaOne Auto acquisition completed on 30 April 2026 and lifted pro-forma group revenue to A$18.7 billion, with founder Pat Priestner also taking a 5% stake in easyauto123.
Eagers Automotive said further growth opportunities are well progressed. With CanadaOne Auto representing approximately 30% of expected full year revenue, it offers a second earnings source alongside the Australian business.
What this means for investors
The trading update points to the following:
- Record revenue: full year revenue from continuing operations guided to $17.3 billion to $17.5 billion, with revenue and Underlying Profit Before Tax both expected to be records.
- Margin outperformance: an Underlying return on sales of 2.8% – 3.0% is expected, against industry-wide margin pressure.
- Diversification: CanadaOne Auto represents approximately 30% of expected full year revenue and acts as a hedge to the Australian operations.
- Productivity and discipline: the Company said its productivity focus and capital discipline, combined with these key components, have it well-positioned to continue providing “both accretive growth and clear industry outperformance”.
The guidance assumes third quarter market conditions continue through to year end.
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