AUTOCANADA ENTERS INTO NATIONAL PARTNERSHIP WITH AUTOTRADER.CA

• AutoCanada announced a national advertising partnership with AutoTrader.ca, covering all 64 franchised dealerships across Canada.
• The agreement leverages AutoTrader’s AI-driven inventory surfacing, demand allocation, and performance analytics to connect dealerships with high-intent buyers.
• Management frames the rollout as a tool for measurable performance tracking, scalable digital marketing, and consistent inventory visibility across the network.
• CEO and Interim CFO Samuel Cochrane emphasized that the partnership aligns with the company’s focus on performance accountability and disciplined capital allocation.
• This release formalizes and expands a pilot program previously disclosed during the Q3 2025 earnings call, where management noted AutoTrader was being tested in roughly one-third of dealerships to help pivot back to volume growth.

• The announcement is an expected operational follow-through rather than a new strategic catalyst. Management explicitly guided toward reactivating digital marketing channels to rebuild traffic after aggressive cost-cutting temporarily suppressed volumes.
• The partnership is routine for automotive retail and does not alter the fundamental revenue model, margin structure, or capital allocation priorities.
• While positive for execution, the deal lacks exclusivity, pricing transparency, or guaranteed volume lift. It serves as a tactical tool to support the broader 2026 turnaround narrative rather than a standalone value driver.
• Given the company’s current focus on deleveraging and U.S. divestitures, marketing spend must be carefully monitored to ensure it does not erode the recently achieved $115 million annualized cost savings.

• AutoCanada operates a network of 64 franchised automotive dealerships across Canada, with a growing collision repair division (32+ centers).
• The flagship strategic initiative is a dual-track turnaround: aggressively exiting the U.S. operations segment to deleverage the balance sheet, while simultaneously executing a $115 million annualized cost transformation program in Canada.
• Management is pivoting toward operational excellence, focusing on rebuilding vehicle sales volumes, improving used car sourcing, and expanding the high-margin collision repair footprint through targeted acquisitions.
• The company holds a minor market share (~2% of Canadian dealerships, ~1% of collision), leaving a long runway for consolidation if capital allocation improves.