This report does not constitute a rating action. Overview Key strengths Key risks Resilient business model with diverse revenue streams. Aggressive acquisition strategy, with potential integration risk. Above-average EBITDA margins even with recent decline in new vehicle margins. Significant geographic concentration and more modest scale than public peers. Consistent free cash flow generation. Operation in a fragmented and competitive industry. This downward trend in margins over the past two years is attributed to reduced new vehicle gross margins and weakened profitability in the used vehicle segment. As previously anticipated, new vehicle supply has improved at the same time consumer demand has weakened amid elevated interest rates. This contributed to a decline in same-store new vehicle sales during 2024, with new
