Asbury Automotive Group (ABG) investor relations material

Executive summary

• Q3 revenue was $4.414B, down 8% YoY; adjusted net income was $110.8M, down 21%, and adjusted diluted EPS was $6.16.

• Adjusted EBITDA was $218.0M; same-store revenue declined 6% YoY.

• Tekion conversion and Total Care Auto rollout were completed across all active stores in October, following 47 Tekion conversions in Q3.

• Priorities include new-vehicle share gains, profitable used growth, customer-pay gross profit growth, disciplined SG&A and technology-enabled operations.

Financial highlights

• Q3 gross profit was $731.5M, down 9% YoY, at a 16.6% margin; adjusted operating margin was 4.9%.

• Net income was $105.1M and diluted EPS was $5.84, versus $7.52; adjusted net income was $110.8M and adjusted diluted EPS was $6.16, versus $140.2M and $7.17.

• 9M revenue was $12.911B, down 3% YoY; gross profit was $2.212B, down 3%, and net income was $407.6M, down 6%.

• 9M adjusted operating income was $653.9M versus $762.2M; adjusted operating margin was 5.1% versus 5.7%.

• 9M adjusted operating cash flow was $525.2M versus $542.6M; adjusted free cash flow was $335.6M versus $438.2M.

Outlook and guidance

• 2027 outlook: new-vehicle volume broadly similar, new-vehicle gross profit per unit of $2,750–$3,000, used-vehicle gross profit per unit near $1,750 and used volume growth.

• Adjusted SG&A / gross profit is expected to improve from the mid-60s entering 2027 to the low 60s by year-end 2027.

• Fixed-ops gross profit is expected to return to mid-single-digit growth in 2027; full Tekion benefits are anticipated toward late Q1 and Q2 2027.

• 2026 strategic and planned facility upgrade capital expenditures are estimated at $250M–$275M; leverage target is below 3.0x.