In this week's Tuesday Ticker, automotive earnings season continues to lay bare the industry's shifting fault lines, as automakers, suppliers, retailers and digital marketplaces report results that reflect a market balancing record revenue, margin pressure, electrification spending and cautious investor sentiment.
Ford posts record revenue but full-year loss underscores transition strain
Ford Motor Co. posted record revenue while absorbing billions in losses tied to restructuring, EV investment and operational reset costs as it moved through one of the most expensive transitions in its history.
The Dearborn, Mich.-based automaker reported full-year 2025 revenue of US$187.3 billion ($256.4 billion), the highest in its history, but recorded a net loss of US$8.2 billion ($11.2 billion). Fourth-quarter revenue totalled US$45.9 billion ($62.8 billion), with adjusted earnings before interest and taxes of US$1.0 billion ($1.37 billion). The company said it expects 2026 adjusted EBIT of US$8 billion to US$10 billion, signalling anticipated improvement.
"Ford delivered a strong 2025 in a dynamic and often volatile environment," CEO Jim Farley said, citing cost reductions, quality improvements and progress in the Ford Pro division.
Shares closed at roughly US$13.59 on Feb. 10 and were trading near US$13.98 on Feb. 23, up US$0.39 or 2.9%.
Lithia leans on used vehicles and service to offset new-car pressure
Lithia & Driveway Inc. leaned on used vehicle sales and recurring service revenue to offset margin compression in new-vehicle retail operations.
The Medford, Ore.-based dealership group reported fourth-quarter and full-year results that showed growth in used vehicles and aftersales service despite pricing pressure in new inventory.
"Our team delivered strong growth in used vehicles and aftersales, despite headwinds in new vehicles and continued margin pressures," CEO Bryan DeBoer said.
Shares closed at roughly US$320.41 on Feb. 11 and were trading near US$289.37 on Feb. 23, down US$31.04 or 9.7%.
Advance Auto Parts advances turnaround but shares drift lower
Advance Auto Parts Inc. reported progress under its restructuring plan, though investors remain cautious about the pace and durability of its recovery.
The Raleigh, N.C.-based automotive aftermarket retailer posted fourth-quarter gross profit of approximately US$0.9 billion ($1.23 billion) as it continued streamlining supply chains, improving store execution and tightening cost controls across its U.S. and Canadian operations.
Management reiterated that the strategic plan is aimed at restoring margin performance and strengthening long-term competitiveness in the fragmented aftermarket sector.
Shares closed at US$58.85 on Feb. 13 and were trading near US$55.99 on Feb. 23, down US$2.86 or 4.9%.
Magna highlights strong cash flow and margin expansion in shifting market
Magna International Inc. reported solid free cash flow and margin expansion as global vehicle production remained uneven and platform mix shifted toward electrification.
The Aurora, Ont.-based supplier posted full-year free cash flow of US$1.9 billion ($2.6 billion) and outlined a 2026 outlook pointing to continued margin stability.
"Our 2026 outlook reflects confidence in our ability to build on this momentum," CEO Swamy Kotagiri said.
Shares closed near US$68.73 on Feb. 13 following the earnings release and were trading around US$64.76 on Feb. 23, down US$3.97 or 5.8%.
Genuine Parts plans structural separation as shares ease
Genuine Parts Co. announced a corporate split designed to sharpen strategic focus while reporting steady earnings performance.
The Atlanta-based parent of NAPA Auto Parts posted quarterly and full-year results alongside plans to separate its automotive and industrial segments into two publicly traded companies, a move aimed at unlocking shareholder value.
"We continued to advance our GPC strategies in 2025 while navigating a dynamic environment," CEO Will Stengel said.
Shares closed at about US$125.74 on Feb. 17 and were trading near US$118.08 on Feb. 23, down US$7.66 or 6.1%.
Carvana posts record profitability as shares pull back from highs
Carvana Co. reported record revenue and profitability following a sharp turnaround, though its stock has pulled back from recent highs.
The Tempe, Ariz.-based online used-vehicle retailer posted full-year revenue of US$20.3 billion ($27.8 billion) and net income of US$1.9 billion ($2.6 billion), with fourth-quarter revenue of US$5.6 billion ($7.7 billion). The company continued expanding logistics and reconditioning capacity to support long-term growth targets.
"We remain firmly on track to our goal of selling 3 million retail units a year at a 13.5% Adjusted EBITDA margin," CEO Ernie Garcia said.
Shares closed at US$361.53 on Feb. 18 and were trading near US$336.00 on Feb. 23, down US$25.53 or 7.1%.
CarGurus posts steady revenue growth and modest stock gains
CarGurus Inc. reported steady digital marketplace growth as dealerships continued shifting marketing and inventory online.
The Cambridge, Mass.-based automotive marketplace posted fourth-quarter revenue of US$241.1 million ($330.0 million), slightly exceeding expectations as it expanded dealer workflow tools and consumer-facing services.
"2025 was a pivotal year for CarGurus as we delivered strong financial performance while expanding our products and use cases," CEO Jason Trevisan said.
Shares closed at US$29.20 on Feb. 19 and were trading near US$30.36 on Feb. 23, up US$1.16 or 4.0%.
Canadian Tire reports strong quarter as transformation plan gains traction
Canadian Tire Corp. reported strong quarterly and full-year results as its automotive and broader retail operations benefited from ongoing transformation efforts.
The Toronto-based retailer, which includes a significant automotive parts and service business, posted solid fourth-quarter and full-year 2025 results under its "True North" strategy.
"Our standout fourth quarter capped a year of strong sales growth and market share gains," CEO Greg Hicks said.
Shares closed at $182.53 on Feb. 19 and were trading at $188.48 on Feb. 20, up $5.95 or 3.26%.
