US Auto Dealers: 2Q26 Auto Dealer Preview

Research evidence excerpt

US Auto Dealers: 2Q26 Auto Dealer Preview

Global Research

10 July 2026ab

US Auto Dealers Equities

Americas2Q26 Auto Dealer Preview

Automobiles

Robert Saltzman

Net: We see 2Q26 beats vs. consensus expectations at SAH/AN, misses at GPI/ABG and Analyst

relatively inline results for CVNA/PAG/LAD. New vehicle demand held up well for the robert.saltzman@ubs.com

quarter and closed strong with June LV SAAR coming in at 16.7mm, which we believe +1-212-713 2992

was better than management teams expected during our conversations with them in Joseph Spak, CFA

late June. As a result, we believe there could be some upside for the group as it relates to Analyst

new units given the strong close to end of the month/quarter. However, results will more joseph.spak@ubs.com

likely be driven by GPU and SG&A cost controls. We believe, based on our conversations, +1-212-713 3089

that new GPU continues to hang in there and is close to finding its bottom, with the Alejandro Nuno

exception of ABG who continues to see headwinds from STLA inventory and some Associate Analyst

timing related issues at PAG centered around a stop sale at JLR towards the end of the alejandro.nuno@ubs.com

quarter (on an airbag recall for Range Rovers, but this is temporary in nature). Given +1-212-713 3886

where we are in the new/used unit cycle, we continue to prefer names in the group with Gabriel Gonzales, CFA

idiosyncratic stories on growth/cost control (CVNA, SAH, LAD) and preference towards Associate Analyst

capital returns in the form of share buybacks to help compound EPS in a relatively flat gabriel.gonzales@ubs.com

top-line environment (AN). +1-212-713 4866

How to play 2Q26 earnings

We see a few opportunities centered around results in the quarter...