Asbury Automotive Group (ABG) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $4.5B, up 18% year-over-year, and record Parts & Service gross profit of $340M, up 19%.

• Full-year 2024 revenue reached $17.2B, up 16% year-over-year, with 152 new car dealerships and 198 franchises as of December 31, 2024.

• Adjusted EPS for FY24 was $27.24, up 188% since 2019 (24% CAGR), and adjusted EBITDA was $982M.

• Same-store parts & service gross profit grew 19% year-over-year in Q4, with customer pay mileage trending upward.

• Diversified business mix: 41% of new vehicle revenue from imports, 30% luxury, and 29% domestic brands.

Financial highlights

• Adjusted net income for Q4 was $143M, excluding $11M in non-cash asset impairments, $5M in hurricane-related losses, and $1M in franchise termination proceeds.

• FY24 total revenue: $17.2B, up from $14.8B in FY23; 323,916 new and used vehicles retailed.

• Adjusted operating margin for FY24 was 5.8%, with adjusted operating income of $997M.

• Adjusted free cash flow for FY24 was $526M; adjusted operating cash flow was $688M.

• Ended Q4 with $828M in liquidity and a net leverage ratio of 2.85x.

Outlook and guidance

• 2025 new vehicle gross profit per vehicle expected in the $2,500–$3,000 range, with the average for the year likely higher due to current levels.

• Targeting $30B+ in revenue by 2030, with continued focus on M&A, technology investment, and balanced capital allocation.

• TCA non-cash deferral expected to impact F&I PVR through 2025 and 2026, with consolidated TCA EPS contribution projected to rebound by 2028.

• SG&A as a percentage of gross profit projected to be in the mid-60s% for 2025.

• CapEx anticipated at $250M for both 2025 and 2026.