Eagers stock targets record revenue despite margin pressure

Eagers Automotive expects record revenue in 2026 despite weaker trading conditions in Australia, according to a trading update released by Eagers Automotive on Thursday, November 5. The company cited elevated interest rates, persistent inflation and higher fuel prices as pressures on consumer sentiment and operating costs.

Record Sales, Tighter Margins

Eagers forecasts reported revenue from continuing operations of AUD 17.3 billion to AUD 17.5 billion for the year ending December 31, 2026. The range represents growth of at least 30 percent from the previous financial year, while underlying profit before tax is also expected to reach a record.

The group nevertheless expects industry-wide pressure on net return on sales in its Australian operations. Its forecast underlying return on sales is 2.8 percent to 3.0 percent. Eagers says the measure is based on continuing operations and adjusted for significant items; the underlying figures are non-financial measures that have not been reviewed by its external auditors.

Expansion Supports Growth

CanadaOne Auto continued to perform above expectations in the third quarter and is providing diversification through North American operations. Eagers said the investment is expected to represent about 30 percent of group revenue on a full-year basis.

The company is also using its Australian dealership network and growing new-car market share to expand easyauto, its national pre-owned vehicle business. The trading update said easyauto remains a strategic growth pillar as Eagers combines scale, its original-equipment-manufacturer portfolio and capital discipline.

Company Profile and Competition

Eagers Automotive operates vehicle dealerships across Australia and New Zealand, selling new and used vehicles and providing related automotive services. The company also has operations connected with vehicle distribution and pre-owned retailing, while its North American expansion adds another earnings region. Eagers is headquartered in Queensland, Australia, and its website states that the group employs 8,000 people.

The Australian automotive retail market remains fragmented. Eagers competes with smaller dealership groups such as Autosports Group and Peter Warren Automotive Holdings, while its broader network and international expansion give it a larger operating footprint than these focused Australian peers.

Australian equity markets provide the relevant regional backdrop for the company: Current ASX 200 market coverage.

More company coverage is available in More news and analyses on Eagers stock.

Eagers Automotive at a Glance

• Company: Eagers Automotive Limited
• ISIN: AU000000APE3
• Ticker: APE
• Primary market: ASX
• 2026 revenue outlook: AUD 17.3 billion to AUD 17.5 billion
• 2026 underlying return on sales outlook: 2.8 percent to 3.0 percent
• Headquarters: Queensland, Australia