Question · Q4 2025
Jack Weisenberg, on behalf of Scott Stember, asked about the decline in the parts and services segment in 2025 despite rising used sales, seeking details on the underlying business. He also inquired about the M&A environment in 2026 and whether pausing the dividend allows for more aggressive deal-seeking or prioritizes debt leverage.
Answer
Matthew Wagner, CEO and President, attributed the 2025 decline in parts and services to reallocation of internal work for used reconditioning. He outlined 2026 focal points including tech training, launching a service CRM, and streamlining parts processes with manufacturers. Brett Andrus, SVP, Investor Relations, stated the M&A environment leans towards distressed assets, with the company being prudent and disciplined. The dividend pause prioritizes net debt deleverage and dry powder for growth, with M&A criteria remaining tight.
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