AutoCanada Profitability Seen Normalizing by 4Q -- Market Talk

1134 ET - AutoCanada delivered better-than-expected topline and earnings results in 2Q, driven by higher vehicle sales and market share gains in June. Still, overall profitability remains squeezed by vehicle margin pressures and sell-off of older used car inventory, Khan says. RBC analyst Sabahat Khan notes that gross profit per unit will stay under pressure through 3Q, with normalized trends expected in 4Q and into 2027 once inventory is right-sized. Meanwhile, AutoCanada is strengthening its balance sheet by selling its U.S. dealership portfolio and raising over C$106 million so far to pay down debt-and expanding its higher-margin Canadian collision repair footprint. RBC raised its price target to C$24, maintaining an sector perform rating. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

August 18, 2026 11:34 ET (15:34 GMT)