AUTOCANADA ANNOUNCES FOURTH QUARTER RESULTS

AUTOCANADA ANNOUNCES FOURTH QUARTER RESULTS Canada NewsWire EDMONTON, AB, March 18, 2026 Revenue from continuing operations was $1,116.6 million as compared to $1,265.8 million in the prior year, a decrease of $149.2 million Net loss for the period from total operations was $(14.6) million as compared to $(38.4) million in the prior year Net (loss) income from continuing operations was $(2.3) million as compared to $9.8 million in the prior year Net loss from discontinued operations was $(12.2) million as compared to net loss of $(48.2) million in the prior year Diluted net (loss) income per share from continuing operations of $(0.06) as compared to $0.45 in the prior year Adjusted EBITDA1 from total operations was $26.3 million as compared to $47.1 million in the prior year Adjusted EBITDA from continuing operations was $32.7 million as compared to $54.4 million in the prior year Adjusted EBITDA from discontinued operations was $(6.4) million as compared to $(7.3) million in the prior year Total Net Funded Debt to Bank EBITDA Ratio2 Increased from 3.40x as at September 30, 2025 to 3.44x as at December 31, 2025 EDMONTON, AB, March 18, 2026 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three-month period ended December 31, 2025. Samuel Cochrane, CEO, stated, "Fourth quarter performance was shaped by a more challenging market backdrop. Demand was affected by prior-period pull-forward activity, including the sunset of Canadian EV tax credits that benefited the fourth quarter of 2024 and tariff-related policy changes that drove stronger demand in the first half of 2025. At the same time, affordability pressures persisted and industry gross profit per unit declined as vehicle availability improved and pricing normalized. Industry wide performance was impacted in the fourth quarter by these dynamics, which have also created tough comparisons as we entered 2026. Against that backdrop, AutoCanada navigated a period of significant internal change as we progressed through a leadership transition while simultaneously completing our cost transformation. Over the course of 2025, we achieved approximately $115 million in annualized run-rate cost savings. The pace and scope of the transformation created temporary operational disruption at the store level in the second half of 2025, impacting sales productivity and performance relative to the broader market. We have identified the issues, put new operating leadership in place, and are focused on closing the gap to market through 2026. Looking ahead, our priorities for 2026 are clear: stabilizing and improving our automotive retail operations, continuing to expand our collision platform, strengthening the support our head office provides to dealerships and collision centres, recruiting and retaining a high-performing team, and maintaining a lean and efficient cost structure. I want to thank our employees across the organization for their commitment and resilience through this period of change, and our OEM partners for their continued collaboration and support. Together, we are building a stronger and more focused AutoCanada, and we are confident in the path ahead." 1 See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and year ended December 31, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at investors.autocan.ca or on www.sedarplus.ca). Fourth Quarter Key Highlights and Recent Developments Three-Months Ended December 31 Continuing Operations Financial Results 2025 2024 Revised 3 % Change Revenue 1,116,564 1,265,837 (11.8) % Same store revenue 1,114,883 1,230,442 (9.4) % Gross profit 173,970 216,118 (19.5) %    Gross profit percentage 2 15.6 % 17.1 % (1.5) ppts Operating expenses ("Opex") 150,212 178,675 (15.9) % Net (loss) income (2,331) 9,847 (123.7) % Basic net (loss) income per share attributable to AutoCanada shareholders (0.06) 0.46 (113.0) % Diluted net (loss) income per share attributable to AutoCanada shareholders   (0.06) 0.45 (113.3) % Adjusted EBITDA1 32,703 54,379 (39.9) % Adjusted EBITDA margin 1 2.9 % 4.3 % (1.4) ppts    New retail vehicles sold (units) 2 7,028 8,544 (17.7) %    Used retail vehicles sold (units) 2 8,741 10,585 (17.4) % New vehicle gross profit per retail unit 2 3,748 4,627 (19.0) % Used vehicle gross profit per retail unit 2 442 1,836 (75.9) % Parts and service ("P&S") gross profit 69,626 76,843 (9.4) % Collision repair ("Collision") gross profit 18,136 17,242 5.2 % Finance, insurance and other ("F&I") gross profit per retail unit average 2 3,451 3,305 4.4 % Operating expenses before depreciation 2 137,245 164,078 (16.4) % Operating expenses before depreciation as a % of gross profit 2 78.9 % 75.9 % 3.0 ppts Normalized opex before depreciation 1 131,490 151,559 (13.2) % Normalized opex before depreciation as a percentage of gross profit (%) 1 75.6 % 70.1 % 5.5 ppts Floorplan financing expense 8,331 13,055 (36.2) %  3 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Revenue decreased by (11.8)% in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to decreases in new vehicle sales, used vehicle sales, parts and service, and F&I. Gross profit decreased by (19.5)% to $174.0 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, driven by decreases in new vehicle, used vehicle, parts and service, and F&I gross profits. This decline is partially offset by an increase in gross profit from collision repair services. Operating expenses before depreciation2 decreased by (16.4)% to $137.2 million in the fourth quarter of 2025 compared to the fourth quarter of 2024. Normalized operating expenses before depreciation1 decreased by (13.2)% to $131.5 million, and included the normalization of $4.9 million of restructuring charges related to the initiatives targeting $115.0 million in annual run-rate cost savings. Floorplan financing expenses decreased (36.2)% to $8.3 million due to reduced new and used vehicle inventory levels and lower interest rates. Net income for the period decreased by (123.7)% to a net loss of $(2.3) million in the fourth quarter of 2025 compared to  $9.8 million in the fourth quarter of 2024, as a result of items noted above, as well as higher interest rate swap costs, unrealized FX losses, and income taxes, partially offset by an increase in fair value change in interest swaps and gain on settlement of redemption liability. Adjusted EBITDA1 decreased by (39.9)% to $32.7 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, while adjusted EBITDA margin1 decreased by (1.4) percentage points ("ppts") to 2.9%. The decrease in margin was driven by decreases in gross profit, partially offset by lower operating expenses before depreciation2 and lower floorplan financing expenses as noted above. Collision Operations Highlights Three-Months Ended December 31 Collision Financial Results 2025 2024 % Change Revenue 35,366 36,262 (2.5) % Gross profit 18,136 17,242 5.2 % Gross profit percentage2 51.3 % 47.5 % 3.8 ppts Adjusted EBITDA1 5,477 5,949 (7.9) % Same store revenue2 33,686 36,262 (7.1) % Same store gross profit2 17,576 17,241 1.9 % Same store gross profit percentage2   52.2 % 47.5 % 4.7 ppts Revenue decreased as a result of normalization of paintless dent repair following a severe hail event in 2024 and this was partially offset by increased revenue from traditional collision business. Gross profit and gross profit percentage2 increased driven by strong customer demand for traditional collision repair services, and additional Original Equipment Manufacturer ("OEM") certifications. Trends in the same store revenue2, gross profit and gross profit percentage2 are consistent with overall business performance, with the reasons noted above. Adjusted EBITDA1 decreased as a result of increased operating expenses which relate to investments in operational support functions. Other Recent Developments During the quarter: On October 3, 2025, the Company completed the acquisition of Doug's Place Strathcona, a collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment. On October 28, 2025, the Company announced the appointment of AutoCanada's Chief Financial Officer to the role of Interim Chief Executive Officer. Concurrently, the Executive Chair transitioned out of his role as AutoCanada's Executive Chair and as a director of the Company. In addition, the Company's Chief Strategy Officer & General Counsel transitioned out of his respective role at the end of 2025. On November 13, 2025, the Company announced that AutoCanada's Chief Operating Officer and President, North American Operations will be transitioning out of their respective roles. Mikel Pestrak was promoted to Interim President, Dealership Operations. Art Crawford was promoted to President, Collision Operations. Cynthia Hill was promoted to Executive Vice President, General Counsel and Corporate Secretary. On December 15, 2025, the Company announced the appointment of Fade Bouras as Chief Operating Officer, effective January 5, 2026, and John North to its Board of Directors, effective immediately. On December 15, 2025, the Company announced that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to commence a normal course issuer bid ("NCIB") for its common shares. Under the NCIB, the Company may purchase for cancellation up to 1,177,539 common shares, representing approximately 10% of the public float of 11,775,396 of the Company's issued and outstanding common shares on December 15, 2025. The NCIB will commence on December 18, 2025 and will terminate on the earlier of December 17, 2026, the date the Company acquires the maximum number of common shares under the NCIB, or such earlier date as the Company may determine. After the quarter: On January 20, 2026, the Company completed the acquisition of Modern Autobody, a single-location collision and refinish repair facility located in Edmonton, Alberta, which is included within the Canadian Operations segment. On January 27, 2026, the Company sold substantially all of the operating assets of Toyota of Lincoln Park, located in Chicago, Illinois, for cash consideration of $11.2 million plus closing adjustments. Toyota of Lincoln Park was previously presented as held for sale in the U.S. Operations segment. On February 18, 2026, the Company announced that its Board of Directors has appointed Samuel Cochrane as Chief Executive Officer, effective immediately. Mr. Cochrane will also serve as Interim Chief Financial Officer while the Company initiates a search for a permanent Chief Financial Officer. Conference Call A conference call to discuss the results for the three months ended December 31, 2025 will be held on March 18, 2026 at 4:00 pm Mountain (6:00 pm Eastern). To participate in the conference call, please dial 1-888-510-2154 approximately 10 minutes prior to the call. This conference call will also be webcast live over the internet and can be accessed by all interested parties at the following URL: https://investors.autocan.ca/2025-q4-conference-call/ MD&A and Financial Statements Information included in this press release is a summary of results. It should be read in conjunction with AutoCanada's Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the three-month period and year ended December 31, 2025, which can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca. All comparisons presented in this press release are between the three-month period ended December 31, 2025 and the three-month period ended December 31, 2024, unless otherwise indicated. Results are reported in Canadian dollars and have been rounded to the nearest thousand dollars, unless otherwise stated. 1 See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2 This press release contains "SUPPLEMENTARY FINANCIAL MEASURES" and "FINANCIAL COVENANTS". Section 13. NON-GAAP AND OTHER FINANCIAL MEASURES and Section 6. LIQUIDITY AND CAPITAL RESOURCES of the Company's Management's Discussion & Analysis for the three-month period and year ended December 31, 2025 ("MD&A") is hereby incorporated by reference for further information regarding the composition of these measures and financial covenants (accessible through the SEDAR website at investors.autocan.ca or on www.sedarplus.ca). Consolidated Statements of Comprehensive Income (Loss) For the Years Ended (in thousands of Canadian dollars except for share and per share amounts) December 31, 2025 $ December 31, 2024 Revised (1) $ Continuing operations Revenue (Note 6) 4,896,320 5,271,549 Cost of sales (Note 7) (4,111,536) (4,396,109) Gross profit 784,784 875,440 Operating expenses (Note 8) (657,632) (720,408) Operating profit before other income and expense 127,152 155,032 Lease and other income, net (Note 10) 6,540 7,783 Gain on disposal of assets, net (Note 10) 15,547 31,881 Net impairment losses on trade and other receivables (2,107) (8,737) Impairment of non-financial assets (Note 20, 24) (11,314) (3,412) Operating profit 135,818 182,547 Finance costs (Note 11) (101,734) (128,636) Finance income (Note 11) 1,192 2,674 Gain (loss) on redemption liabilities (Note 14) 3,920 (486) Other (losses) gains, net (3,689) 846 Income for the year before tax from continuing operations 35,507 56,945 Income tax expense (Note 12) 12,121 8,035 Net income for the year from continuing operations 23,386 48,910 Net loss for the year from discontinued operations (Note 18) (5,447) (115,658) Netincome (loss) for the year 17,939 (66,748) Other comprehensive income (loss) Items that may be reclassified to profit or loss Foreign operations currency translation (Note 18) (6,131) 8,032 Reclassification of cumulative foreign operations currency translation on discontinued operations   (Note 18) (4,908) -- Change in fair value of cash flow hedge (Note 25) -- (206) Income tax relating to these items (Note 12) (604) 51 Other comprehensive (loss) income for the year, net of tax (11,643) 7,877 Comprehensive income (loss) for the year 6,296 (58,871) Net income (loss) for the year attributable to: AutoCanada shareholders 16,034 (68,233) Non-controlling interests 1,905 1,485 17,939 (66,748) Netincome (loss) for the year attributable to AutoCanada shareholders arises from: Continuing operations 21,481 47,425 Discontinued operations (5,447) (115,658) 16,034 (68,233) Comprehensive income (loss) for the year attributable to: AutoCanada shareholders 4,391 (60,356) Non-controlling interests 1,905 1,485 6,296 (58,871) Comprehensiveincome (loss) for the year attributable to AutoCanada shareholders arises from: Continuing operations 16,552 47,270 Discontinued operations (12,161) (107,626) 4,391 (60,356) Consolidated Statements of Comprehensive (Loss) Income (continued) For the Years Ended (in thousands of Canadian dollars except for share and per share amounts) December 31, 2025 $ December 31, 2024 Revised (1) $ Net income (loss) per share attributable to AutoCanada shareholders:   Basic from continuing operations 0.93 2.03 Basic from discontinued operations (0.24) (4.96) Basic 0.69 (2.93) Diluted from continuing operations 0.89 1.96 Diluted from discontinued operations (0.23) (4.79) Diluted 0.66 (2.83) Weighted average shares Basic (Note 30) 23,103,884 23,316,008 Diluted (Note 30) 24,220,047 24,137,069 1  Comparative period revised to reflect current period presentation. See Note 18 - "Discontinued Operations" for additional information The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca. Consolidated Statements of Financial Position (in thousands of Canadian dollars) December 31, 2025 $ December 31, 2024 $ ASSETS Current assets Cash 87,963 67,343 Trade and other receivables (Note 15) 133,164 173,568 Inventories (Note 16) 895,928 947,278 Current tax recoverable 12,297 10,205 Other current assets (Note 21) 16,790 11,993 Derivative financial instruments (Note 25) 911 376 1,147,053 1,210,763 Assets held for sale (Note 17, 18) 228,259 332,693 Total current assets 1,375,312 1,543,456 Property and equipment (Note 19) 301,385 312,014 Right-of-use assets (Note 24) 337,936 389,958 Other long-term assets (Note 21) 15,821 16,501 Deferred income tax (Note 12) 16,772 18,840 Intangible assets (Note 20) 607,765 630,467 Goodwill (Note 20) 91,905 94,592 Total assets 2,746,896 3,005,828 LIABILITIES Current liabilities Trade and other payables (Note 22) 149,517 177,473 Revolving floorplan facilities (Note 23) 962,616 1,010,579 Current tax payable 3,602 3,766 Vehicle repurchase obligations (Note 26) 2,582 3,705 Indebtedness (Note 23) 1,688 24,108 Lease liabilities (Note 24) 25,872 35,780 Redemption liabilities (Note 14) 19,146 23,066 Equity forward liabilities (Note 27) 22,970 11,063 Derivative financial instruments (Note 25) 2,109 1,741 1,190,102 1,291,281 Liabilities directly associated with assets held for sale (Note 18)   98,357 201,966 Total current liabilities 1,288,459 1,493,247 Long-term indebtedness (Note 23) 513,021 517,543 Long-term lease liabilities (Note 24) 383,469 421,392 Long-term redemption liabilities (Note 14) 25,000 25,000 Derivative financial instruments (Note 25) 5,147 8,705 Deferred income tax (Note 12) 49,824 44,613 Total liabilities 2,264,920 2,510,500 EQUITY Attributable to AutoCanada shareholders 460,477 468,027 Attributable to non-controlling interests 21,499 27,301 Total equity 481,976 495,328 2,746,896 3,005,828 The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca. Consolidated Statements of Cash Flows For the Years Ended (in thousands of Canadian dollars) December 31, 2025 $ December 31, 2024 $ Cash provided by (used in): Operating activities Net income (loss) for the year 17,939 (66,748) Adjustments for:      Income tax expense (Note 12, 18) 12,742 21,733      Finance costs (Note 11, 18)  118,339 155,598      Depreciation of right-of-use assets (Note 24) 32,618 35,919      Depreciation of property and equipment (Note 19) 20,100 25,843      Amortization of intangible assets (Note 20) 733 503      Gain on disposal of assets, net (Note 10, 18) (22,839) (29,781)      Share-based compensation (Note 29) 8,613 8,033      Unrealized fair value changes on foreign exchange forward contracts (Note 25)   (2,652) 3,853      Revaluation of redemption liabilities (Note 14) (3,920) 486      Net impairment of non-financial assets (Note 18, 20) 3,808 21,058      Net change in non-cash working capital (Note 36)  (34,068) 1,325 151,413 177,822 Income taxes paid (8,322) (537) Interest paid (117,462) (144,412) Settlement of share-based awards, net (2,587) (1,247) 23,042 31,626 Investing activities Business acquisitions, net of cash acquired (Note 13) (2,174) (20,197) Purchases of property and equipment (26,229) (33,282) Additions to intangible assets (Note 20) (648) (790) Settlement of prior year business acquisitions (46) (491) Proceeds on sale of property and equipment 10,433 63,123 Proceeds on divestiture of dealership (Note 34) 44,148 59,497 Proceeds on termination of loan agreement with subsidiary (Note 34) 30,107 -- Proceeds on franchise termination (Note 34) 894 -- 56,485 67,860 Financing activities Proceeds from indebtedness (Note 23) 760,680 635,046 Repayment of indebtedness (Note 23) (789,539) (657,730) Repurchase of common shares under Normal Course Issuer Bid (Note 30) -- (9,942) Payments for purchase of Used Digital Division minority interest -- (22,500) Treasury shares acquired (Note 30) (5,178) (1,625) Shares settled from treasury (Note 30) 2,522 1,629 Acquisition of non-controlling interests (8,490) (5,486) Repayment of loan by non-controlling interests 4,477 2,961 Dividends paid to non-controlling interests (3,694) (4,294) Principal portion of lease payments (31,374) (31,984) (70,596) (93,925) Effect of exchange rate changes on cash (1,217) (1,359) Net increase in cash 7,714 4,202 Cash at beginning of year per balance sheet 67,343 103,146 Cash at the beginning of year included in discontinued operations (Note 18) 40,005 -- Cash at end of year 115,062 107,348 Included in cash per balance sheet 87,963 67,343 Included in the assets of the discontinued operations (Note 18) 27,099 40,005 The accompanying notes are an integral part of these condensed interim consolidated financial statements and can be found on the Company's website at investors.autocan.ca or on www.sedarplus.ca. NON-GAAP AND OTHER FINANCIAL MEASURES This press release contains certain financial measures that do not have any standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, cash, and indebtedness determined in accordance with GAAP, as indicators of our performance. We provide these additional Non-GAAP measures ("Non-GAAP Measures"), capital management measures, and supplementary financial measures to assist investors in determining the Company's ability to generate earnings and cash provided by (used in) operating activities and to provide additional information on how these cash resources are used. Adjusted EBITDA, adjusted EBITDA margin, normalized operating expenses before depreciation, and normalized operating expenses before depreciation as a percentage of gross profit are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Investors are cautioned that these Non-GAAP Measures should not replace net earnings or loss (as determined in accordance with GAAP) as an indicator of the Company's performance, cash flows from operating, investing and financing activities or as a measure of liquidity and cash flows. The Company's methods of calculating referenced Non-GAAP Measures may differ from the methods used by other issuers. Therefore, these measures may not be comparable to similar measures presented by other issuers. We list and define these "NON-GAAP MEASURES" below: Adjusted EBITDA Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is an indicator of a company's operating performance over a period of time and ability to incur and service debt. Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to: Interest expense (other than interest expense on floorplan financing), income taxes, depreciation, and amortization; Charges that introduce volatility unrelated to operating performance by virtue of the impact of external factors (such as share-based compensation amounts attributed to certain equity issuances as part of the Used Digital Division); Non-cash charges (such as impairment, recoveries, gains or losses on derivatives, revaluation of contingent consideration and revaluation of redemption liabilities); Charges outside the normal course of business (such as restructuring, gains and losses on dealership divestitures, and real estate transactions); and Charges that are non-recurring in nature (such as resolution of lawsuits and legal claims, and share-based compensation amounts attributable to certain equity issuances as part of the transformation plan). The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance over a period of time. Adjusted EBITDA Margin Adjusted EBITDA margin is an indicator of a company's operating performance specifically in relation to our revenue performance. The Company considers this measure meaningful as it provides improved continuity with respect to the comparison of our operating performance with retaining and growing profitability as our revenue and scale changes over a period of time. Normalized Operating Expenses ("Opex") Before Depreciation Normalized operating expenses before depreciation is an indicator of a company's operating expense before depreciation over a period of time, normalized for the following items: Transaction costs related to acquisitions, dispositions, and open points; Software implementation costs associated with the configuration or customization of software as a service arrangement; Restructuring charges relate to non-recurring organizational changes to improve the Company's profitability and overall efficiency; Management transition costs; and Share-based compensation expense. The Company considers this measure meaningful as it provides a comparison of our operating expense normalized for transactions that are not indicative of the Company's operating expenses over time. Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit Normalized operating expenses before depreciation as a percentage of gross profit is a measure of a company's normalized operating expenses before depreciation over a period of time in relation to gross profit. The Company considers this measure meaningful as it provides a comparison of our operating performance, normalized for transactions that are not indicative of the Company's operating expenses, with our growing profitability as our gross profit and scale changes over a period of time. NON-GAAP AND OTHER FINANCIAL MEASURES RECONCILIATIONS Adjusted EBITDA and Segmented Adjusted EBITDA The following table illustrates segmented adjusted EBITDA for the three-month periods ended December 31: Three-Months Ended December 31, 2025 Three-Months Ended December 31, 2024 Revised 1 Canada U.S. Total Canada U.S. Total Period from October 1 to December 31 Net (loss) income for the period (2,227) (12,328) (14,555) 7,105 (45,471) (38,366) Add back (deduct): Income tax expense 3,209 621 3,830 1,173 94 1,267 Depreciation of property and equipment 4,571 4 4,575 6,084 685 6,769 Interest on long-term indebtedness 7,746 831 8,577 7,509 3,141 10,650 Depreciation of right of use assets 8,113 -- 8,113 8,536 1,008 9,544 Amortization of intangible assets 279 -- 279 126 -- 126 Lease liability interest 7,486 1,672 9,158 8,127 960 9,087 Impairment (recovery) of non-financial assets 4,919 1,486 6,405 (3,240) 5,192 1,952 (Gain) loss on redemption liabilities (2,950) -- (2,950) 1,113 -- 1,113 Canadian franchise dealership and corporate restructuring charges   4,899 -- 4,899 9,913 -- 9,913 FTC settlement -- -- -- -- 27,396 27,396 Unrealized fair value changes on derivative instruments (4,343) -- (4,343) 5,491 -- 5,491 Unrealized foreign exchange losses (gains) 2,092 -- 2,092 (175) -- (175) Software implementation costs 330 -- 330 531 -- 531 Cybersecurity incident costs 468 -- 468 567 -- 567 RightRide restructuring charges -- -- -- 995 -- 995 Write-down associated with wholesale transactions -- -- -- 7,592 -- 7,592 Acquisition related costs 137 1,199 1,336 -- -- -- Share-based compensation for transformation plan awards (153) -- (153) -- -- -- Realized foreign exchange gain on divested dealerships -- 38 38 -- -- -- Gain on disposal of assets (1,725) (25) (1,750) (7,352) -- (7,352) Adjusted EBITDA 32,851 (6,502) 26,349 54,095 (6,995) 47,100 Adjusted EBITDA from discontinued operations 87 6,267 6,354 284 6,995 7,279 Adjusted EBITDA from continuing operations 32,938 (235) 32,703 54,379 -- 54,379 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. The following table illustrates segmented collision adjusted EBITDA from continuing operations for the three-months ended December 31. There is no discontinued operation in Collision Operations. Three-Months Ended December 31, 2025 Three-Months Ended December 31, 2024 Collision Operations Canada U.S. Total Canada U.S. Total Period from October 1 to December 31   Net income (loss) for the period 913 (236) 677 4,374 -- 4,374 Add back (deduct): Income tax expense 2,686 -- 2,686 (448) -- (448) Depreciation of right of use assets 635 -- 635 679 -- 679 Depreciation of property and equipment     598 4 602 493 -- 493 Amortization of intangible assets 11 -- 11 -- -- -- Lease liability interest 860 -- 860 851 -- 851 Loss on disposal of assets 6 -- 6 -- -- -- Adjusted EBITDA 5,709 (232) 5,477 5,949 -- 5,949 Adjusted EBITDA Margin The following table illustrates segmented adjusted EBITDA margin from continuing operations for the three-month periods ended December 31: Three-Months Ended December 31, 2025   Three-Months Ended December 31, 2024   Revised 1   Canada   U.S.   Total   Canada   U.S.   Total   Adjusted EBITDA 32,938 (235) 32,703 54,379 -- 54,379 Revenue 1,116,291 273 1,116,564 1,265,837 -- 1,265,837 Adjusted EBITDA Margin    3.0 % (86.1) % 2.9 % 4.3 % -- % 4.3 % 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Normalized Operating Expenses Before Depreciation and Normalized Operating Expenses Before Depreciation as a Percentage of Gross Profit The following tables illustrate segmented normalized opex before depreciation and normalized opex before depreciation as a percentage of gross profit from continuing operations for the three-month periods ended December 31: Three-Months Ended December 31, 2025   Three-Months Ended December 31, 2024   Revised 1   Canada   U.S.   Total   Canada   U.S.   Total   Operating expenses before depreciation 136,912 333 137,245 164,078 -- 164,078 Normalizing Items: Deduct: Acquisition-related costs (137) -- (137) (316) -- (316) Software implementation costs (330) -- (330) (531) -- (531) Canadian franchise dealership and corporate restructuring charges (4,899) -- (4,899) (9,913) -- (9,913) Share-based compensation expense (389) -- (389) (1,759) -- (1,759) Normalized Opex before depreciation 131,157 333 131,490 151,559 -- 151,559 Gross profit 173,877 93 173,970 216,118 -- 216,118 Normalized Opex Before Depreciation as a percentage of gross profit (%) 75.4 % 358.1 % 75.6 % 70.1 % -- % 70.1 % 1 Comparative period revised to reflect current period presentation for reclassification of discontinued operations. Forward Looking Statements Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe", "shall" and similar expressions) and the financial outlook with respect to the transformation plan are not all historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict. Forward-looking statements and financial outlook in this press release include: AutoCanada's future financial position, expected run-rate operational expense savings from the implementation of the ACX Operating Method, the expected aggregate proceeds from the U.S. dealership divestitures, the completion and the anticipated timing of completion of the U.S. dealership disposition transactions, engagement in selling the remaining dealerships of the U.S. Operations segment, the impact of the U.S. dealership divestitures on the Company's leverage ratio, the anticipated timing of restoring Canadian dealership performance to levels more consistent with industry benchmarks, the impact of restoring Canadian dealership performance to levels more consistent with industry benchmarks on the Company's leverage ratio, and the expected accretive growth of collision operations. Forward-looking statements and financial outlook provide information about management's expectations and plans for the future and may not be appropriate for other purposes. Forward looking statements and financial outlook are based on various assumptions, and expectations that AutoCanada believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove correct. Those assumptions and expectations are based on information currently available to AutoCanada, including information obtained from third-party consultants and other third-party sources, and the historic performance of AutoCanada's businesses. AutoCanada cautions that the assumptions used to prepare such forward-looking statements and financial outlook, including AutoCanada's expected run-rate operational expense savings through the transformation plan, could prove to be incorrect or inaccurate. In preparing the forward-looking statements and financial outlook, AutoCanada considered numerous economic, market and operational assumptions, including key assumptions listed under Section 3 Market and Financial Outlook of the MD&A. The forward-looking statements and financial outlook are also subject to the risks and uncertainties set forth below. By their very nature, forward-looking statements and financial outlook involve numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AutoCanada's actual performance and financial results may vary materially from those estimates and expectations contemplated, expressed or implied in the forward-looking statements or financial outlook. These risks and uncertainties include risks relating to failure to realize expected cost-savings, compliance with laws and regulations, reduced customer demand, operational risks, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in (i) the MD&A under Section 12 Risk Factors and (ii) AutoCanada's most recent Annual Information Form (the "AIF"). The preceding list of assumptions, risks and uncertainties is not exhaustive. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements and financial outlook. Therefore, any such forward-looking statements and financial outlook are qualified in their entirety by reference to the factors discussed throughout this press release and in the MD&A. Details of the Company's material forward-looking statements and financial outlook are included in the Company's most recent AIF. The AIF and other documents filed with securities regulatory authorities (accessible through the SEDAR+ website (www.sedarplus.ca) describe the risks, material assumptions, and other factors that could influence actual results and which are incorporated herein by reference. When relying on our forward-looking statements and financial outlook to make decisions with respect to AutoCanada, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements and financial outlook are provided as of the date of this press release and, except as required by law, AutoCanada does not undertake to update or revise such statements to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or financial outlook. About AutoCanada AutoCanada's Canadian Operations segment operates 64 franchised dealerships in Canada, comprised of 23 automotive brands across 8 provinces as well as three independent used dealerships ("Used Vehicle Operations"). AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, and Volkswagen vehicles. In 2025, our Canadian dealerships sold approximately 71,000 new and used retail vehicles. In addition, AutoCanada's Canadian Operations segment operates 33 collision centres ("Collision Centres"), supported by 26 Original Equipment Manufacturer ("OEM") certifications covering 37 vehicle brands. The Company's collision platform enables customer retention across multiple touchpoints within the automotive ownership lifecycle. AutoCanada's U.S. Operations segment, operating as Leader Automotive Group ("Leader"), operates 12 franchised dealerships comprised of 9 brands, in Illinois, USA. Leader currently sells Audi, Hyundai, Kia, Lincoln, Mercedes-Benz, Porsche, Subaru, Toyota, and Volkswagen branded vehicles. In 2025, our U.S. dealerships sold approximately 8,000 new and used retail vehicles. Additional Information Additional information about AutoCanada is available at the Company's website at www.autocan.ca and on the SEDAR+ website at www.sedarplus.ca. SOURCE AutoCanada Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2026/18/c9620.html Contact: For further information contact: Samuel Cochrane, Chief Executive Officer and Interim Chief Financial Officer, Phone: 604.910.5509, Email: [email protected] © 2026 Canjex Publishing Ltd. All rights reserved.