Asbury Automotive Group (ABG) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $18 billion and record Q4 revenue of $4.7 billion, up 4% year-over-year, with a 16% CAGR since 2019.

• Adjusted EPS grew 196% since 2019, reaching $28.10 in 2025; Q4 adjusted EPS was $6.67.

• Completed $2.9 billion in acquisitions and strategic divestitures, expanding to 171 dealerships and 223 franchises across 36 brands.

• Repurchased $100 million in shares and deployed $186 million in CapEx for the year.

• Transitioned 15 additional stores to Tekion DMS, with over 40 stores on the new system and full rollout expected by Q3 2026.

Financial highlights

• FY25 revenue reached $18.0B, up 5% year-over-year; Q4 revenue was $4.7B, up 4%.

• Adjusted EBITDA for 2025 was $1.1B; adjusted operating margin at 5.6%.

• Full-year adjusted net income was $550M, up 1% year-over-year; Q4 adjusted net income was $129M.

• Adjusted operating cash flow for 2025 was $651M; liquidity at year-end totaled $927M.

• Transaction-adjusted net leverage ratio was 3.2x at year-end.

Outlook and guidance

• Plans to complete Tekion rollout by Q3 2026, with efficiency and cost benefits expected in 2027.

• Targeting leverage below 3x by summer 2026 and continued share repurchases.

• Estimated annual CapEx of $250M in 2026 and 2027 for facility upgrades.

• New vehicle profitability expected to stabilize in the $2,500-$3,000 PVR range.

• Customer pay growth in parts and service forecasted at mid-single digits.