CarMax (NYSE: $KMX), a used vehicle retailer in the US, released its Q4 fiscal 2025 results on Thursday, April 10, 2025, before markets opened. Here is a deep dive into those results.
CarMax Q4 Fiscal 2024 Results
For the fourth quarter of fiscal 2025, CarMax reported net revenue of $6 billion, a 6.7% YoY increase, and above estimates of $5.99 billion. The used car retailer reported an adjusted EPS of $0.58, missing estimates of $0.64.
Other Q4 highlights
Retail used unit sales were up 6.2% YoY, while wholesale units rose 3.1%. Meanwhile, comparable store used unit sales rose 5.1% YoY.CarMax reported solid margins in both wholesale and retail, with gross profit per retail used unit at $2,322, up $71, and $1,045 for wholesale units, down $75.
It bought 269,000 cars from dealers and consumers, a 15.3%YoY increase. Of those, 223,000 units were from consumers, a 5.3% YoY increase and 46,000 of those units were from dealers, a 114.2% YoY increase. The company’s SG&A was up 5.1% YoY to $610.5 million in Q4.
Share Buyback
In Q4, CarMax bought back $98.5 million worth of shares and had $1.94 billion remaining under its current share buyback program.
Full-Year Highlights
The company reported full year revenue of $26.4 billion, compared to $26.5 billion the previous year. Full-year net earnings came in at $500.6 million compared to $479.2 million the previous year, while the adjusted EPS came in at $33.21 compared to $3.02 the previous year.
Fiscal 2026 CapEx Plan
In fiscal 2026, CarMax plans to open stores in six new locations, and four standalone reconditioning/auction centers. They expect a CapEx of $575 million, primarily driven by the timing of land purchases that were pushed from fiscal year 2025 to fiscal 2026.
CarMax (KMX) Market Performance
Following the mixed Q4 results, KMX shares dipped 12.92% in premarket trading to $69.72 per share as of 9:30 AM EDT. As of Wednesday’s close, of $80.06, KMX shares were up 12.44% in the past six months, down 2.08% YTD, and down 3.99% in the past 12 months. The stock is below above both the 50 and 200-day moving averages of $79.63, and $79.02, respectively.
Analysts are cautiously optimistic, giving the stock a moderate buy rating. They forecast an average price of $90.17, which is a 12.63% upside based on the most recent price. The analysts give KMX shares a wide range of price targets, with a high of $105 and a low of $65.
Is Now A Good Time To Buy KMX Shares?
CarMax’s future looks great, based on the $575 million in planned capex. The company expects new store growth, and improvement across its omni-channel offerings. Management is also focused on cost efficiencies, aiming to maintain profitability amid potential macroeconomic headwinds. Based on management’s efforts, and the company’s continued growth in its reach, CarMax (KMX) could potentially be a great addition to your portfolio in the long term.
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