CarMax Inc.
Q4 2025 KMX Earnings Summary & Our Critical Insights
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We have been following the dealership and the auto sector for more than two years. After speaking with dealers, wholesalers and auction houses, we have a good grip of what is going on with the auto sector - especially with the dealerships, OEMs and the banks.
KMX 0.00%↑ kicked off the earnings season. KMX reported Q4 GAAP EPS of $0.58, missed by $0.08. Revenue of $6B beats by $30M. The company’s earnings per share fell slightly below expectations. But the more significant issue appeared to be CarMax’s earnings report disclosure it would no longer follow the time period it established to achieve long-term targets because of the “potential impact of broader macro factors.”
CarMax said a year ago it aimed to sell more than 2 million total retail and wholesale vehicles annually between fiscal 2026 and 2030. It also expected to post $33 billion in annual revenue and have a more than 5 percent nationwide market share of used vehicles from “almost new” to 10 years old. The company said it continues to make progress toward these goals.
Latest Earnings
For fiscal 2024, it sold 765,572 used vehicles and 546,331 wholesale vehicles.
Net income: $90 million, up 79 percent from the fourth quarter a year ago.
Net revenue: $6 billion, up 6.7 percent from the same time last year.
Vehicle sales: 182,655 used retail vehicles, up 6.2 percent from Q4 2023; 119,156 wholesale vehicles, up 3.1 percent. Same-store used-vehicle retail sales rose 5.1 percent, CarMax said in its quarterly report issued April 10.
Gross profit per vehicle: $2,322 per retail used vehicle, up $71 per unit from a year ago; $1,045 per wholesale used vehicle, down $75 per unit.
For the full 2024 fiscal year, CarMax reported net income of $500.6 million, up 4.5 percent from the previous period.
CarMax said it purchased 269,000 vehicles from consumers and dealers in the fourth quarter, up more than 15.3 percent year over year. It bought 223,000 from consumers, up 5.3 percent, and 46,000 vehicles from dealers, up 114.2 percent.
About 15 percent of CarMax’s retail vehicle sales in the fourth quarter occurred online, Nash said. CarMax considers sales online when a customer completes all four steps of a transaction remotely: reserving a vehicle; financing it; trading in a vehicle or opting out of a trade-in; and creating a remote sales order.
At the same time, the company earned a slightly lower profit per vehicle of $1,045, down 3.8% from a year ago.
Looking ahead to FY26, CarMax plans to open six new locations and four stand-alone reconditioning/auction centers, with capital expenditures reaching $575M.