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An update from AutoCanada ( (TSE:ACQ) ) is now available.
AutoCanada has completed the sale of its Kia of Lincolnwood dealership in Illinois, which generated $53 million in sales but a net loss of $1.6 million in 2025. The $13.4 million in cash proceeds, including $6.3 million for real estate, will be used to reduce the balance on the company’s revolving credit facility, reinforcing efforts to strengthen its balance sheet.
The divestiture marks continued progress in AutoCanada’s plan to exit its loss-making U.S. operations, which posted a $103.4 million net loss in 2024 and have now yielded about $62.4 million in asset-sale proceeds. Supporting this transition, the company’s lenders have agreed to temporarily loosen a key leverage covenant, increasing the permitted Total Funded Debt to Bank EBITDA ratio to 4.5 times through mid-2026 to provide added financial flexibility during the remaining U.S. dealership sales.
The most recent analyst rating on (TSE:ACQ) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on AutoCanada stock, see the TSE:ACQ Stock Forecast page.
Spark’s Take on ACQ Stock
According to Spark, TipRanks’ AI Analyst, ACQ is a Neutral.
The score is held down primarily by weak financial quality (high leverage and inconsistent profitability) and bearish technicals (price below all key moving averages with negative MACD). Valuation offers limited support with a high P/E and no dividend yield provided, while the earnings call adds a modest positive from cost savings, Collision growth, and planned asset-sale proceeds to reduce debt.
To see Spark’s full report on ACQ stock, click here.
More about AutoCanada
AutoCanada Inc. is a multi-location North American automobile dealership group listed on the TSX. The company operates franchised dealerships that sell new and used vehicles, provide parts and service, and arrange related financing, with operations historically spanning both Canada and the U.S. but now increasingly focused on its Canadian platform.
Average Trading Volume: 78,700
Technical Sentiment Signal: Strong Sell
Current Market Cap: C$455.4M
Find detailed analytics on ACQ stock on TipRanks’ Stock Analysis page.