Asbury Automotive Group (ABG) investor relations material

Executive summary

• Q2 2025 revenue reached $4.4 billion, up 3% year-over-year, with gross profit of $752 million and net income rising to $153 million, a 443% increase from Q2 2024; EPS was $7.76 per diluted share.

• Completed the acquisition of The Herb Chambers Automotive Group, expanding the dealership footprint by 33 dealerships and increasing the luxury brand mix to 35%.

• Welcomed over 2,000 new team members from Herb Chambers, enhancing presence in New England and market stability.

• SG&A as a percentage of gross profit improved to 63.2%, aided by lower rent expenses and insurance recoveries.

• Maintained strong liquidity, with $1.1 billion available as of June 30, 2025, and compliance with all debt covenants.

Financial highlights

• Q2 2025 revenue increased 3% year-over-year to $4.4 billion; gross profit was $752 million, and gross margin stood at 17.2%.

• Adjusted operating margin was 5.8%, adjusted EPS was $7.43, and adjusted EBITDA totaled $256 million.

• Net income for Q2 2025 was $153 million, up from $28.1 million in Q2 2024.

• Free cash flow through Q2 was $275 million; liquidity at quarter-end was $1.1 billion.

• Transaction adjusted net leverage ratio was 2.46x at quarter-end, within target range.

Outlook and guidance

• Second half performance expected to hinge on tariff impacts, OEM pricing adjustments, and TCA non-cash deferral effects on F&I PVR through 2025 and 2026.

• SG&A as a percentage of gross profit expected in the mid-60s for 2025, with ongoing focus on productivity and cost discipline.

• CapEx guidance of ~$250–$273 million for 2025, focused on facility upgrades, new construction, and technology investments.

• Anticipate leverage ratio to decrease below the higher end of target range by mid-to-late 2026.

• Management expects continued pressure on new vehicle margins as inventory constraints ease, but anticipates growth in parts and service due to an aging vehicle fleet.