Asbury Automotive Group (ABG) Q1 2026 Earnings Report

Asbury Automotive Group reported QQ1 2026 revenue of $4.113 billion with gross profit of $704.3 million, delivering a gross margin of 17.1% and an adjusted operating margin of 5.0% alongside adjusted earnings per share (EPS) of $5.37 and adjusted EBITDA of $207 million. Results reflect management’s ongoing transformation of the portfolio and the Tekion DMS transition, which remained a source of near-term headwinds in 1Q but is expected to unlock meaningful efficiency gains as the conversion proceeds. The company also advanced its capital-allocation agenda, divesting 10 dealerships and a collision center to reduce capex burden and strengthen liquidity, and deploying proceeds toward debt reduction and share buybacks (678k shares repurchased for $147 million). Management guided that Tekion conversion is now over 50% complete and targeted full conversion by fall 2026, with peak transition costs concentrated in the 2Q–3Q window. Net leverage stood at 3.2x on transaction-adjusted terms, and liquidity was approximately $1.2 billion, supported by floor-plan offsets and revolving/used lines of credit. The QQ1 2026 backdrop is characterized by weather-driven demand softness, inflationary pressure, and geopolitical uncertainty, which compressed new-vehicle volumes but left used-vehicle GPUs and F&I performance relatively resilient. The plan is to realize ongoing SG&A efficiency and fixed-operations growth as Tekion stabilizes, while maintaining a disciplined capital-allocation stance to de-risk the balance sheet.