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 and Herb Chambers acquisitions and strong parts and service performance.

• Net income rose 16% to $147 million in Q3; for the nine months ended September 30, 2025, net income was $432.0 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.

• New vehicle sales and gross profit increased, while used vehicle sales volume declined but per-unit profitability improved.

• Parts and service revenue and gross profit saw robust growth, with same-store gross profit up 7% and customer pay up 8%.

Financial highlights

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

• Adjusted operating margin was 5.5%; adjusted EPS was $7.17; adjusted EBITDA reached $261 million.

• Adjusted net income for Q3 was $140 million; adjusted EPS would have been $7.40 excluding TCA non-cash deferral impact.

• Free cash flow was $438 million for the first three quarters, $50 million higher year-over-year.

• Net income for the nine months was $432.0 million, a 43% increase from the prior year.

Outlook and guidance

• Expectation for strong luxury performance in Q4, especially in December.

• Margins anticipated to hold up in Q4; new vehicle GPUs expected to normalize to $2,500-$3,000, timing dependent on macro factors.

• TCA EPS accretion delayed due to lower SAAR forecasts; $5+ EPS now expected around 2031, contingent on SAAR recovery or further acquisitions.

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

• Strategic focus on achieving $30B+ in revenue by 2030 through M&A, operational efficiency, and technology investment.