Asbury Automotive Group (ABG) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $4.414B, down 8% YoY (6% same store); net income was $105.1M, down 29%, and adjusted diluted EPS was $6.16.

• Q3 adjusted EBITDA was $218.0M; 9M revenue declined 3% to $12.911B and net income declined 6% to $407.6M.

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

Financial highlights

• Q3 gross profit was $731.5M, down 9% YoY; operating income fell 15% to $206.6M and diluted EPS was $5.84 versus $7.52.

• Adjusted net income was $110.8M versus $140.2M; adjusted diluted EPS was $6.16 versus $7.17.

• 9M gross profit declined 3% to $2.212B; operating income decreased 16% to $620.0M.

• 9M adjusted operating cash flow was $525.2M and adjusted free cash flow was $335.6M.

Outlook and guidance

• 2027 outlook includes broadly similar new-vehicle volume, 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.

• FY 2026 capital expenditures are estimated at $250M–$275M; the estimated effective tax rate is 24.8%.