Shares of Eagers Automotive Ltd (ASX: APE) are gaining ground on Wednesday after the company released a major strategy update before the market open.
In morning trade, the Eagers share price is up 5.16% to $23.66, extending what has already been a strong 12 months for the automotive retail giant.
Over the past year, the stock has climbed more than 50%, comfortably outperforming both its sector and the broader S&P/ASX 200 Index (ASX: XJO).
The latest gain comes after management outlined another expansion move.
Let's take a closer look.
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New Australian deals add scale in key metro markets
According to the announcement, Eagers has moved on two new growth initiatives in Australia.
The first is a strategic 49% investment in Grand Motors Group, a multi-brand dealership portfolio spanning the Gold Coast and metro Sydney. The assets include Grand Motors Toyota on the Gold Coast, Ryde Automotive Group in Sydney covering Mazda, Subaru, and Kia, and Northshore BMW and Mini.
The portfolio generates around $490 million in annual revenue, includes six leading brand partners across 11 locations, and sells roughly 6,100 new vehicles per year.
Eagers said the transaction is expected to complete by the end of June 2026, subject to OEM, finance, and landlord approvals.
The second deal expands its Audi footprint in Victoria through the acquisition of Audi Centre Melbourne and Audi Richmond from Zagame Automotive Group.
Those dealerships generated around $140 million in annual revenue and approximately 1,100 new vehicle sales over the past 12 months. The deal also increases Eagers' exposure to Melbourne's premium vehicle segment.
Management says the growth pipeline remains active
Chief Executive Keith Thornton said the latest acquisitions reflect the company's disciplined expansion strategy.
He said:
The acquisition of these high-quality dealerships demonstrates the opportunities for Eagers to continue to grow in the Australian market and we are delighted to strengthen our representation with these global brand partners.
Thornton also pointed to the Grand Motors partnership model as another example of how Eagers is using scale and shared operating platforms to grow through aligned retail partners.
Management also said the much larger CanadaOne Auto investment continues to progress toward completion in Q2 2026 after originally being targeted for Q1.
That transaction remains central to the group's international expansion plans and gives it a pathway into the Canadian dealership market.
With local acquisitions continuing and the CanadaOne deal moving closer, today's share price move suggests investors are backing Eagers' ability to keep growing beyond its already dominant Australian footprint.
Foolish Takeaway
The update shows Eagers is still finding ways to expand across attractive metro markets even from an already strong base.
The new Australian deals add more revenue and premium brand exposure, while CanadaOne remains a larger international opportunity still moving toward completion.
After a strong run over the past year, today's share price gain suggests investors remain supportive of the company's expansion plans.
