AutoCanada Inc. reported a first-quarter loss as weak vehicle demand and falling used-car profits hurt dealership results, though stronger performance in its collision repair business helped offset some of the decline.
The Edmonton-based dealership group reported a first-quarter loss of $3.3 million, or 15 cents per share, compared with a profit of $9.7 million, or 37 cents per share, a year earlier. All figures are in Canadian dollars unless otherwise stated.
Revenue fell 4.1% to $1.19 billion from $1.24 billion, while gross profit fell 14.6% to $169.1 million from $198 million.
“We entered 2026 focused on stabilizing dealership performance, improving operational execution, and strengthening our balance sheet, and we made meaningful progress against those priorities during the quarter,” chief executive officer and interim chief financial officer Samuel Cochrane said in a statement.
The dealership business was pressured by lower new-vehicle sales and weak used-car margins. New vehicle sales fell 17.9% to 6,294 units, while used vehicle sales slipped 1.1% to 9,934 units.
AutoCanada lost an average of $48 on each used vehicle sold during the quarter, compared with a profit of $1,421 per vehicle a year earlier.
“While industry demand remained soft and profitability was impacted by expected pressure in used vehicle margins, we are encouraged by improving trends in used vehicle sales productivity, used vehicle profit per retail unit, operational efficiencies achieved through organizational changes implemented during the quarter, and the continued resilience of our collision platform,” Cochrane said.
Collision repair results were more stable. Collision revenue slipped 1.8% to $39.6 million from $40.3 million, but gross profit rose 0.8% to $18.3 million from $18.2 million. The segment’s gross profit margin improved to 46.3% from 45.1%.
Same-store collision revenue fell 14.2% to $34.6 million, while same-store gross profit fell 10.1% to $16.4 million. Management attributed part of the decline to weaker hail-related work compared with last year, when weather events boosted repair demand.
Management described collision repair as a key growth area because demand is tied more closely to insurance claims than to new-vehicle sales. The report stated AutoCanada continued expanding the business through acquisitions, OEM certifications and insurer repair partnerships.
“The core collision business is performing well,” management stated in the report, though overall results were affected by weaker hail-related activity and tougher comparisons with last year.
Adjusted earnings from collision operations fell 22.5% to $4.7 million from $6.1 million.
Management stated AutoCanada added multiple OEM certifications during the quarter, with more in progress. The report also pointed to growth in insurance direct repair program relationships, apprenticeship training and higher-margin services including diagnostics, calibrations and coatings.
The company reported it has received about $65.8 million from completed U.S. dealership sales and expects total proceeds of about $130 million once the remaining deals close.
“We believe these actions position the company to reduce leverage and create a stronger operational foundation as we move through 2026,” Cochrane said.
At the end of the quarter, AutoCanada had about $357.5 million in cash and available credit.
