04:33 PM EDT, 03/19/2025 (MT Newswires) -- AutoCanada ( AOCIF ) Wednesday after trade reported a swing to a fourth-quarter profit as operating expenses before depreciation fell.

The company, which operates 64 franchised dealerships in Canada, reported a profit of $7.1 million, or $0.33 per share, compared with a loss of $16 million, or $0.54, in the prior year period.

The swing to profit was due to lower operating expenses before depreciation, which had fallen due to one-time $36.8 million share-based compensation expense related to the consolidation of ownership of the Used Digital Division in the prior year, lower variable employee costs, and the initiative targeting $100 million in annual run-rate cost savings by the end of 2025.

Revenue dipped 1.2% to $1.26 billion, due to weaker used vehicle performance, the company said.

"So far in 2025, the Canadian new light vehicle market has cooled, and while industry forecasts project flat sales this year, we are navigating a complex environment," said Executive Chairman Paul Anthony, adding that the North American and Canadian automotive markets remain highly vulnerable to U.S. tariffs.

"Despite these challenges, our transformation plan remains on track, and we are committed to operational excellence, cost discipline, deleveraging, and long-term value creation."

The company's shares closed up $0.85 to $16.50 on the Toronto Stock Exchange.