Asbury Automotive Group (ABG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $4.1–$4.15 billion, down 1% year-over-year, with net income of $132 million, a 10% decrease, and gross profit of $724 million, down 3%.

• Adjusted EPS was $6.82, adjusted EBITDA was $240 million, and adjusted operating margin was 5.8%.

• Record parts and service gross profit, up 3–5% year-over-year, offset lower vehicle margins.

• Announced pending $1.34 billion acquisition of Herb Chambers Automotive Group, adding 31–33 dealerships and ~$3 billion in annual revenue, expected to close in Q2 2025.

• Share repurchase authorization increased to $400 million, with $275.9 million remaining as of March 31, 2025.

Financial highlights

• New vehicle revenue rose 4% to $2.14 billion, while used vehicle revenue fell 8–9% to $1.24 billion year-over-year.

• Parts and service revenue was flat, but gross profit in this segment increased 3–5% to a record $343 million.

• F&I PVR was $2,261–$2,263, flat or slightly up sequentially.

• Adjusted net income was $134 million, excluding $11 million in non-cash impairments, $7 million cyber insurance recovery, $3 million divestiture gains, and $2 million acquisition-related fees.

• Operating cash flow was $225 million; adjusted operating cash flow was $187 million.

Outlook and guidance

• Full-year adjusted tax rate forecasted at 25.2%.

• CapEx expected to be $250–$260.3 million for 2025, with similar levels for 2026, subject to tariff impacts.

• Focus on deleveraging over the next 18–24 months post-Herb Chambers acquisition.

• Pro forma total revenue expected to reach ~$20 billion after closing Herb Chambers deal.

• Long-term vision to achieve $30B+ in revenue by 2030 through M&A and organic growth.