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, with Q4 gross profit of $793 million and a gross margin of 17%.

• Adjusted EPS reached $28.10 for 2025, with Q4 adjusted EPS of $6.67; adjusted EBITDA for 2025 was $1.1 billion.

• Strategic acquisitions added $2.9 billion in revenue; major deals included Herb Chambers Group and Jim Koons Automotive Group.

• Divested four stores in Q4 and plan to divest up to 15 stores, representing up to $800 million in annualized revenue.

• Repurchased $100 million in shares and invested $186 million in capital expenditures during 2025.

Financial highlights

• FY25 revenue grew 5% to $18.0 billion, with Q4 revenue up 4% year-over-year to $4.7 billion.

• Adjusted net income for Q4 was $129 million; full-year adjusted net income was $550 million.

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

• Parts and service revenue grew 6% for the year and 12% in Q4; used vehicle retail gross profit up 16% in Q4.

• Adjusted SG&A as a percentage of gross profit increased to 64.1% year-over-year.

Outlook and guidance

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

• Plan to complete Tekion DMS rollout by Q3 2026, with efficiency gains expected in 2027 and beyond.

• Anticipate annual capital expenditures of ~$250 million for 2026 and 2027.

• Management focused on sustainable growth, disciplined capital allocation, and operational improvements.

• Expect first half of 2026 to be challenging due to weather and DMS transition, with improvement in the second half.