Asbury Automotive Group Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw $4.4B revenue, 17.2% gross margin, and 70% Tekion rollout completion, driving operational gains. Used vehicle strategy shift and disciplined capital allocation supported strong liquidity and share buybacks. SG&A leverage and efficiency improvements are expected to continue.
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Q1 2026 results showed revenue of $4.1B and adjusted EPS of $5.37, with performance impacted by weather, Tekion rollout, and moderated demand. Portfolio optimization and share repurchases were key, while full Tekion conversion and efficiency gains are expected by year-end.
Fiscal Year 2025
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Record Q4 revenue and gross profit were achieved, with strong used vehicle and parts/service performance. Strategic divestitures and disciplined capital allocation improved leverage, while Tekion rollout and efficiency initiatives are expected to drive future gains.
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Q3 saw record revenue and strong growth in new vehicles and parts/service, aided by the Chambers acquisition and robust luxury demand. Margins held firm, but used vehicle volumes declined. TCA earnings accretion is delayed due to lower SAAR forecasts, and capital allocation now prioritizes share repurchases and deleveraging.
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Q2 2025 saw strong revenue and margin performance, driven by operational efficiency, portfolio optimization, and the Herb Chambers acquisition. Focus remains on cost discipline, leverage reduction, and technology investments, with tariff and market uncertainties monitored closely.
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Q1 2025 saw record parts and service gross profit, $4.1B revenue, and $6.82 adjusted EPS. Pending $1.34B Herb Chambers acquisition will shift focus to deleveraging, while tariff uncertainty and weather disruptions impacted some regions and segments.
Fiscal Year 2024
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Record Q4 revenue and gross profit were driven by strong new vehicle sales, higher used vehicle profitability, and robust parts and service growth. SG&A efficiency improved, but headwinds from Stellantis and TCA rollout are expected in 2025. Positive industry momentum and disciplined capital allocation support a stable outlook.
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Q3 2024 saw revenue up 16% and adjusted EPS of $6.35, despite major headwinds from hurricanes and stop sales, which reduced EPS by $0.39–$0.43. Parts and service grew, SG&A improved, and Tekion rollout is expected to further lower costs by 2027.
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Second quarter results were impacted by the CDK outage, but record revenue and parts and service gross profit were achieved. Adjusted EPS was $6.40, with strong cash flow and continued share repurchases. High single-digit growth in parts and service gross profit is expected for the remainder of 2024.