Eagers bets on Canada expansion to drive 2026 growth

Eagers Automotive Ltd. (ASX: APE) is poised for a step-change in earnings as its North American expansion begins to feed through, with fiscal 2026 marking the first full year of contribution from its majority stake in Canadian dealership group CanadaOne Auto Group.

The Australian automotive retailer acquired a 65% stake in CanadaOne in late 2025 as part of a broader push to diversify beyond its domestic market. The move gives Eagers exposure to Canada’s fragmented dealership landscape.

Visible Alpha consensus estimates suggest the CanadaOne division will generate A$4.7 billion in revenue in 2026, making it Eagers’ second-largest segment after new vehicle sales. The acquisition is expected to underpin a sharp uplift in group revenues, which are forecast to rise 40.9% year-on-year to A$18.4 billion.

However, strip out the acquisition effect and the underlying growth picture looks more subdued. Analysts expect revenue momentum across Eagers’ legacy operations to moderate in 2026, following double-digit growth in 2025, as vehicle supply normalizes and pricing tailwinds fade.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.