Asbury Automotive Group (ABG) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $4.8 billion, up 13% year-over-year, and record gross profit of $803 million, up 12%, driven by the Chambers/Herb Chambers acquisitions and strong luxury, EV, and parts and service performance.

• Net income rose 16% to $147 million in Q3; for the nine months ended September 30, 2025, net income was $432 million, up 43% year-over-year.

• Diluted EPS increased 18% to $7.52 in Q3; for the nine months, EPS was $21.99, up 47% year-over-year.

• Growth strategy advanced through major acquisitions, Tekion DMS rollout, and ongoing portfolio optimization.

• Used vehicle volumes declined, but per-unit profitability improved; parts and service revenue and gross profit saw robust growth.

Financial highlights

• Record Q3 revenue of $4.8 billion and gross profit of $803 million, with gross margin at 16.7%.

• Adjusted operating margin was 5.5%; adjusted EBITDA for Q3 was $261 million, and for the twelve months ended September 30, 2025, $1.01 billion.

• Adjusted net income was $140 million in Q3; adjusted EPS was $7.17, with free cash flow of $438 million for the first three quarters.

• Net income for the nine months was $432 million, with diluted EPS of $21.99.

• SG&A as a percentage of gross profit was 64.2% (adjusted), down year-over-year.

Outlook and guidance

• Strategic focus on scaling to $30 billion+ revenue by 2030 through M&A, operational efficiency, and technology investment.

• Management expects continued pressure on new vehicle margins as inventory constraints ease, but strong parts and service growth.

• TCA EPS accretion delayed due to lower SAR forecasts; $5+ EPS now expected by 2031 if SAR returns to 17 million.

• Capital expenditures for 2025 projected at $175 million.

• SG&A as a percentage of gross profit expected to remain stable, with further reductions post-Tekion rollout.