Copart Powers Ahead in Q4 2026 with International Growth and Optimistic Outlook
Copart, Inc. has delivered a strong performance in its fourth quarter of fiscal 2026, despite a decline in global unit sales. The company's CEO and Executive Chairman, Jay Adair, attributed the growth to their strategic focus on international expansion, insurance, whole car expansion domestically, and investment in technology and services.
Speaking during the company's recent earnings call, Adair emphasized that Copart views itself as a business run by founders with a founder's mindset, thinking in decades rather than quarters or years. He highlighted liquidity as another differentiator for the company, constantly improving buyer activity through their website and moving quickly to bring products and services to market.
The company reported a 10% increase in international unit sales, outpacing a 2.9% decline in global unit sales overall. Domestic insurance assignments would have been up 2.3%, but for one single customer loss, while global insurance units were down 4.2%. Insurance ASPs globally increased by 3.1% year-over-year, with domestic insurance being up 3.7% and international insurance up 3.3%.
A notable trend in the collision claim frequency is a moderation from single-digit declines through 2025 to a 3.4% decline year-over-year. This, however, is accompanied by rising repair costs, with average collision severity over $6,300 per claim and up nearly 8.8% year-over-year. Rental car rates also rose by 4.5% year-over-year.
Adair pointed out the increasing complexity of vehicles, noting that a new Tesla has approximately 100 million lines of code, compared to a military drone with 3.5 million and an Airbus aircraft with 30 million. This trend is expected to lead to higher total loss frequencies in the future.
Vehicles miles traveled were up 0.27% year-over-year in Q4 2026, while vehicles in operation increased by 1.6% year-over-year in calendar quarter two of 2026. The Manheim Used Vehicle Value Index was up 2.8% year-over-year in the fourth quarter of 2026.
Copart's focus on liquidity through improving buyer activity has paid off, with vehicles sold to buyers less than a year ago accounting for 8% of sales in 2026. This underlines the company's competitive edge in the market.
