ABG
Asbury Automotive Group, Inc.242.15
-0.28-0.12%
Dec 16, 4:00:03 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details 2026 H1 challenges
Q&A sketched a bumpy 2026 path: first-half headwinds from weather, Stellantis woes, uncertain tariffs, and Techeon rollout distractions, with second-half pickup via lease returns for used inventory. Management flagged dissatisfaction with parts/service customer pay growth, blaming October-November consumer spending pullback despite traffic stability, while sticking to mid-single-digit outlook. New vehicle GPUs eyed at $2,500-$3,000 via rising luxury mix; leverage below 3x by summer after Q1 divestitures, tempered by buyback opportunities. Techeon hits adjusted SG&A with dual-DMS costs upfront, savings later. First half looks choppy. Watch H2 demand signals and 2027 efficiencies.
Key Stats
Market Cap
4.76BP/E (TTM)
8.50Basic EPS (TTM)
28.50Dividend Yield
0%Recent Filings
10-K
FY2025 results
Asbury Automotive grew revenue 5% to $18.0B in FY2025 ended December 31, 2025, driven by the mid-year Herb Chambers acquisition adding 33 dealerships, while same-store new vehicle revenue rose 4% on 3% unit growth yet gross profit per unit fell 11% to $3,342 as margins normalized to 6.4% from pandemic highs. Parts and service shone with 3% same-store revenue growth and 5% gross profit gains to 58.8% margins, fueled by customer pay and warranty upticks, but used retail units dropped 7% amid affordability woes despite 7% higher profit per unit. Q4 momentum built via Herb integration and $80.2M divestiture gains from 24 franchises, supporting $492M net income ($25.13 diluted EPS) and $927M liquidity; repurchased $100M shares. Transaction-adjusted net leverage hit 3.2x. Supply disruptions from parts shortages risk quarterly sales volatility.
8-K
Record revenue, profit drop
Asbury Automotive hit record $18B annual revenue yet Q4 net income fell 53% to $60M amid $115M asset impairments, offset by $34.5M divestiture gains from four stores. Gross profit rose 6% to $793M, parts/service up 12%, while resuming Tekion rollout across 15 stores. Repurchased $50M shares. Leverage steady at 3.2x.
8-K
New director appointed, bylaws amended
Asbury Automotive appointed Christopher DiSantis, a private equity partner with automotive parts experience, to its board effective March 1, 2026, joining the Audit and Compensation committees and boosting independents to ten of eleven. Longtime director Philip Maritz won't seek re-election at the 2026 annual meeting, with no disagreements cited. Board also eased special meeting calls to 25% ownership threshold. Smooth transition ahead.
8-K
CEO succession announced
Asbury Automotive announced CEO David Hult's transition to Executive Chairman effective after the May 2026 annual meeting, with COO Daniel Clara, 45, succeeding as President and CEO. Hult's amended deal sets base salary at $750,000 through 2026, dropping to $525,000 in 2027 and $300,000 thereafter, plus 100% target bonuses and robust severance. Smooth handover planned. Transition risks execution.
10-Q
Q3 FY2025 results
Asbury Automotive surged with Q3 revenue up 13% y/y to $4.8B, fueled by the July 2025 Herb Chambers acquisition adding 33 dealerships for $1.78B cash (mostly floorplan/revolver/real estate debt), while parts and service grew 11% y/y on aging vehicles. Gross profit climbed 12% y/y to $802.5M (16.7% margin, down 0.2 pts), operating income edged up 4% y/y to $242.6M despite $11.7M impairments, and diluted EPS rose 18% y/y to $7.52 on 19.6M shares (anti-dilutive RSUs excluded). YTD revenue gained 5% y/y to $13.3B, net income soared 43% y/y to $432.0M ($21.99 diluted EPS), OCF hit $623.3M (FCF not disclosed in the 10-Q), cash fell to $32.2M amid $1.49B investing outflows, total debt rose to $3.6B including $544.3M new real estate facility (SOFR+2%/10-yr maturity). Divested $452.9M in stores for $45.8M gain. FTC suit over add-on products lingers.
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