Asbury Automotive Group Reports Third Quarter Results

Revenue of $4.4 billion Gross Profit of $732 million Used Retail unit volume sequential increase of 4.5% EPS of $5.84 per diluted share; adjusted EPS, a non-GAAP measure, of $6.16 per diluted share Net income of $105 million; adjusted net income, a non-GAAP measure, of $111 million Completed company-wide Tekion conversion in mid-October Total Care Auto rollout completed across all Asbury stores in October ATLANTA--(BUSINESS WIRE)--Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., reported third quarter 2026 net income of $105 million ($5.84 per diluted share), a decrease of 29% from $147 million ($7.52 per diluted share) in third quarter 2025. The Company reported third quarter 2026 adjusted net income, a non-GAAP measure, of $111 million ($6.16 per diluted share), a decrease of 21% from $140 million ($7.17 per diluted share) in third quarter 2025. “We have completed one of the most ambitious technology initiatives in Asbury’s history, every active store is now operating on Tekion,” said Dan Clara, Asbury’s President and Chief Executive Officer. “Our teams converted 47 stores in the third quarter alone, the most in any single quarter, and finished the remaining active stores in October to bring the rollout across the finish line. Our longest-tenured Tekion markets achieved efficiency gains with customer pay gross profit up 7% and total parts and service gross profit up 5%. With one modern platform now powering the entire company, we have built a strong foundation to serve our guests, make faster decisions, and operate more efficiently.” The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see “Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data” and the reconciliations for non-GAAP metrics used herein. Adjusted net income for third quarter 2026 excludes, net of tax, $6 million ($0.32 per diluted share) related to Tekion implementation expenses, $1 million ($0.03 per diluted share) related to duplicative DMS-related expenses, and $1 million ($0.03 per diluted share) related to net gain on divestitures. Adjusted net income for third quarter 2025 excludes, net of tax, net gain on divestitures of $27 million ($1.37 per diluted share), $9 million ($0.45 per diluted share) related to a non-cash asset impairment related to a pending disposal, $7 million ($0.37 per diluted share) of professional fees related to the acquisition of the Herb Chambers Automotive Group, $2 million ($0.12 per diluted share) in income tax expense related to the deferred tax true-up for the acquisition of the Herb Chambers Automotive Group and $2 million ($0.09 per diluted share) related to Tekion implementation expenses. Third Quarter 2026 Operational Summary Total Company: Revenue of $4.4 billion Gross profit of $732 million Gross margin of 16.6% New vehicle revenue of $2.3 billion Used vehicle retail revenue of $1.2 billion; used vehicle retail gross profit of $62 million Finance and insurance (F&I) per vehicle retailed (PVR) of $2,176 Parts and service revenue of $644 million; gross profit of $371 million Selling, General and Administrative expenses (SG&A) as a percentage of gross profit of 68.5% Adjusted SG&A as a percentage of gross profit of 67.4% Operating margin of 4.7% Adjusted operating margin of 4.9% Same Store: Revenue of $4.2 billion Gross profit of $695 million Gross margin of 16.6% New vehicle revenue of $2.2 billion Used vehicle retail revenue of $1.1 billion; used vehicle retail gross profit of $59 million F&I PVR of $2,177 Parts and service revenue of $613 million; gross profit of $353 million SG&A as a percentage of gross profit of 68.2% Adjusted SG&A as a percentage of gross profit of 67.0% Operating margin of 4.7% Adjusted operating margin of 4.9% Liquidity and Leverage As of September 30, 2026, the Company had cash, short term investments, and floorplan offset accounts of $210 million (which excludes $39 million of cash at Total Care Auto, Powered by Asbury) and availability under the used vehicle floorplan line and revolver of $821 million for a total of $1.0 billion in liquidity. The Company’s transaction adjusted net leverage ratio was 3.5x at quarter end. Share Repurchases Year-to-date through September 30, 2026, the Company has repurchased approximately 1.35 million shares for $278 million. As of September 30, 2026, the Company had approximately $322 million remaining on its share repurchase authorization. The shares may be purchased from time to time in the open market, in privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchase will depend on such factors as Asbury’s stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic dealership acquisitions and capital investments and other considerations. The program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice. Earnings Call Additional commentary regarding the third quarter results will be provided during the earnings conference call on Tuesday, October 27, 2026, at 10:00 a.m. ET. The conference call will be simulcast live on the internet. The webcast, together with supplemental materials, can be accessed by logging onto https://investors.asburyauto.com. A replay and the accompanying materials will be available on this site for at least 30 days. In addition, live audio will be accessible to the public. Participants may enter the conference call five to ten minutes prior to the scheduled start of the call by dialing: Domestic: (877) 407-2988 International: +1 (201) 389-0923 Passcode: 13763147 About Asbury Automotive Group, Inc. Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Atlanta, Georgia, is one of the largest automotive retailers in the U.S. In 2026, Asbury announced key strategic initiatives for growth as its Five Pillars: increasing new vehicle market share, driving profitable growth in used vehicles, re-establishing consistent growth in customer pay gross profit, managing SG&A and leveraging technology. As of September 30, 2026, Asbury operated 155 new vehicle dealerships, consisting of 197 franchises that represent 34 domestic and foreign brands of vehicles, and 37 collision repair centers. Asbury also operates Total Care Auto, Powered by Asbury, a leading provider of service contracts and other vehicle protection products. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, and prepaid maintenance. Asbury is recognized as one of America’s Fastest Growing Companies 2024 by the Financial Times, one of the World’s Most Trustworthy Companies for 2024 and 2025 by Newsweek, one of America’s Most Successful Small-Cap Companies by Forbes for 2026 and one of America's Best Companies 2026 by TIME. For additional information, visit www.asburyauto.com. Forward-Looking StatementsRead the full story here

Asbury Automotive Group Reports Third Quarter Results

Andere Nachrichten des Unternehmens