Auto Trader Reports Earnings, Profit Growth But Shares Plunge

Auto Trader (LON: AUTO) reported growth in revenue and profit for the year ended 31 March 2025, but its shares fell sharply in early trading as investors weighed the cautious revenue outlook and some of the risks and uncertainties highlighted by the company.

The UK's largest automotive platform posted a 5% rise in group revenue to £601.1 million, while operating profit increased 8% to £376.8 million. Basic earnings per share rose 12% to 31.66 pence.

Retailer revenue grew 7%, supported by an increase in the number of forecourts and stronger engagement with the platform’s advertising tools.

However, the company noted that faster car sales limited advertising slot utilisation, which constrained further revenue upside.

Auto Trader launched new AI-powered features under its “Co-Driver” suite and expanded its Deal Builder functionality, which allows buyers to value part-exchange vehicles and reserve cars online. 

CEO Nathan Coe called Co-Driver “one of the most significant improvements to our search experience and our retailer tools in years.”

Despite the upbeat results, shares fell more than 9% at the open, as investors reacted to slowing momentum and a cautious revenue outlook. 

Retailer revenue growth is expected to rise between 5% and 7% in fiscal 2026, following a subdued second half.

“Retailer revenue growth in the second half of last year was 5%, which was constrained by the acceleration in speed of sale. This has continued into the new financial year,” the company stated.

Meanwhile, Auto Trader highlighted some potential headwinds, such as global tariffs, which “will likely impact our key stakeholders in the short-term.”

Furthermore, they said high operating costs, inflation, and high interest rates on stocking loans puts financial pressure on its customers.

Auto Trader returned £275.7 million to shareholders via dividends and buybacks and proposed a final dividend of 7.1 pence per share.