Eagers Automotive Ltd (ASX: APE) demonstrated remarkable growth in 2025, doubling its share price and achieving a significant increase in early 2026. The automotive retailer’s stock value reached $25.93 as of early February, marking a 102% gain over the past year. Despite a slower growth trajectory this year, the share price rose by 6% in just the first six weeks. Investors are keenly observing whether Eagers is poised for further increases.
Electric Vehicle Boom Fuels Eagers’ Success
A primary factor contributing to Eagers’ impressive performance has been the burgeoning electric vehicle market, particularly through its partnership with BYD. Eagers operates approximately 80% of BYD dealerships in Australia, positioning the company advantageously within one of the fastest-growing electric vehicle brands in the region.
Analysts highlight Eagers’ diverse earnings base as a significant advantage. As economic conditions stabilize and interest rates ease, the company’s scale and strategic partnerships could enable it to outperform its competitors. In mid-2025, Eagers reported a record half-year performance: revenue surged to $6.5 billion, an increase of 18.9% year-on-year, while underlying operating profit before tax reached $197.7 million. Underlying EBITDA also saw a rise to $297 million, up 11.6%.
On February 19, 2026, Eagers is set to release its second-half results for 2025, which analysts predict will continue to reflect strong performance.
Strategic Acquisition Marks North American Expansion
In a bold move, Eagers Automotive announced in October 2025 its acquisition of a 65% stake in CanadaOne Auto, one of Canada’s largest dealership groups. This acquisition, valued at approximately $1.05 billion, represents Eagers’ first significant foray into the North American market. Once completed in the first quarter of 2026, pending necessary approvals, Eagers will control 42 dealerships across various Canadian provinces.
The importance of this acquisition cannot be understated. Canada’s automotive market is significantly larger than Australia’s and generally offers stronger profit margins. Analysts view this expansion as a strategic necessity, providing Eagers with geographic diversification and reducing its dependence on domestic sales cycles. The acquisition is underpinned by a $452 million capital raise and a strategic partnership with Mitsubishi Corporation, which already collaborates with Eagers through the Easyauto123 used-car business.
Eagers is not solely reliant on new vehicle sales, a key advantage in a volatile sector. Its operations in used cars, service, and parts, along with the independent retailer Easyauto123, create recurring revenue streams that are less susceptible to market fluctuations. This diversification equips Eagers with a natural buffer against economic downturns, resulting in a more resilient business model.
Analysts are optimistic about the future of Eagers shares. Despite the significant gains over the past year, many analysts still foresee potential for growth. According to TradingView data, most brokers currently rate Eagers Automotive as a hold or buy, with bullish forecasts suggesting a price target of up to $35.90, indicating a potential upside of 38% from current levels. The average 12-month price target is approximately $30.96, which still reflects a potential 19% gain.
As Eagers prepares to release its second-half results, the company is well-positioned to capitalize on its strategic initiatives and robust market presence. Investors will be closely monitoring developments as the automotive landscape continues to evolve.
