Asbury Automotive Group (ABG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $4.4 billion, with gross profit of $753 million and net income of $115 million, down 25% year-over-year; adjusted net income was $125 million, down 15% from Q2 2025.

• Achieved 70% completion of Tekion DMS rollout, targeting full implementation by October 2026, driving operational efficiencies and productivity improvements.

• Since 2020, revenue grew 152% (17% CAGR), adjusted EPS up 117% (14% CAGR), and new car dealerships expanded by 88% to 158 locations.

• Focused on five strategic pillars: new vehicle market share, customer pay gross profit growth, used vehicle volume, SG&A management, and technology leverage.

• Disciplined capital allocation with $131 million in Q2 share repurchases and $278 million YTD; $322 million remains authorized.

Financial highlights

• Q2 2026 revenue was $4.4 billion, gross profit $753 million, gross margin 17.2%, and adjusted operating margin 5.3%.

• Adjusted net income was $125 million, adjusted EBITDA $235 million, and adjusted EPS $6.82 ($7.48 excluding non-cash deferral impact).

• Parts and service revenue grew to $635 million, with gross profit of $374 million; F&I per vehicle retailed was $2,216.

• Used retail gross profit per unit rose 16% to $2,002; used vehicle gross profit margin improved to 6.1%.

• Liquidity at quarter-end was $966 million, including $154 million in cash and $812 million in available credit.

Outlook and guidance

• SG&A as a percentage of gross profit expected to decline steadily, targeting low 60% range by end of 2027.

• CapEx for 2026 projected at $250 million for facility upgrades, new construction, and technology.

• Effective tax rate expected to be ~25% for the remainder of 2026.

• Management expects long-term value from Tekion DMS investment and continued operational improvements.

• Ongoing focus on M&A activities and portfolio optimization in strong markets.