Edmonton-based AutoCanada Inc. has reported a dramatic revenue decline exceeding $200 million during the third quarter, reflecting a broader slowdown in vehicle sales across Canada.
Steep Decline in Vehicle Sales
The automotive retail giant saw revenues plummet by nearly 15 per cent compared to the same period last year, with the company reporting a $211 million decrease in overall revenue. This sharp downturn was primarily driven by significant reductions in both new and used vehicle sales.
During the quarter ending September 30, AutoCanada sold approximately 7,900 new vehicles, representing a 17.7 per cent drop from the previous year. The used vehicle sector fared even worse, with sales declining by nearly one-quarter compared to the same period in 2024.
Strategic Shift Toward Services
Interim CEO Sam Cochrane, who assumed leadership amid the challenging financial outlook, indicated the company is undergoing what he described as "the most significant cost transformation in AutoCanada's history."
Moving forward, the company plans to prioritize its collision repair operations and other services to drive growth. "In the near term, our priorities will include expanding our collision operations and strengthening the performance of our dealership network under the new ACX framework," Cochrane stated in the earnings report released November 14.
Bright Spots and Recovery Strategy
Despite the overall revenue decline, the company identified several positive factors. The collision repair business continues to show promise, and AutoCanada has largely completed its divestment from United States dealership operations. The company expects these deals to close before year-end.
The third quarter performance marks a significant reversal from the company's stronger mid-year results. In the second quarter, AutoCanada's revenue was down just $43 million (3.1 per cent) year-over-year, and the company reached a share price of $29.23 on August 13, eventually climbing to a yearly high of $38.32 in September.
AutoCanada operates more than 80 franchised dealerships across eight Canadian provinces, positioning it as one of the country's leading automotive retail groups.
