AUTO1 Group Stock: Turnaround Propels Shares to New Heights

After years of financial struggles, online used car dealer AUTO1 Group has achieved a remarkable turnaround, sending its stock soaring to multi-year highs with gains of nearly 10% to €20.62 in recent trading. The Berlin-based company reported record fourth-quarter sales of 183,083 vehicles-a 25% increase year-over-year-while revenue jumped 28% to €1.7 billion. In a significant milestone, AUTO1 transformed its adjusted EBITDA from a €4.5 million loss in the previous year to a positive €37.2 million, exceeding analyst expectations. For the full year 2024, the company posted its first-ever profitable result with an adjusted EBITDA of €109.2 million, compared to a €43.9 million loss in 2023. Total vehicle sales rose 17.7% to approximately 690,000 units, while gross profit surged by 37.3% to €724.7 million.

Ambitious Growth Outlook for 2025

Management has set bullish targets for 2025, projecting adjusted EBITDA to reach €135-165 million and vehicle sales to increase to 735,000-795,000 units. The company has successfully boosted gross profit per vehicle in both its dealer segment and retail customer platforms (wirkaufendeinauto.de and Autohero). Long-term goals include expanding AUTO1's European market share from 2.5% to 10% and achieving an adjusted operating margin between 5-9%, significantly higher than last year's 1.7%. Despite the impressive rally, investors should note that shares still trade well below their €38 IPO price from early 2021.