Asbury Automotive Group (ABG) Q4 2025 Earnings Report

Asbury Automotive Group reported a fourth quarter 2025 that delivered record quarterly revenue and gross profit, supported by strength in used-vehicle margins and ongoing improvements in fixed operations. Revenue reached $4.6765 billion with gross profit of $770.0 million, while adjusted EBITDA was $250 million and adjusted earnings per share (EPS) of $6.67. Net income on a reported basis was $60.0 million, reflecting the impact of nonrecurring items and TCA deferrals; adjusted net income was $109.0 million, or $6.67 per share, with an implied pro forma EPS of $6.98 excluding the noncash TCA headwind of $0.31 per share.

Operationally, ABG advanced with the Techeon DMS rollout, adding 15 stores in Q4 and bringing the total to 38 stores live on Techeon by year-end, with 46 stores by January 2026 and a target of completing rollout to approximately 125 stores through 2026. Management emphasized the plan to accelerate efficiency gains, higher utilization of fixed operations, and cost discipline as central to the 2026–2027 outlook. Leverage improved to 3.2x at year-end, aided by $186 million of capital expenditures in 2025 and divestitures expected to add about $750 million of annualized revenue. Free cash flow for the year was $465 million, with liquidity of $927 million.

Management signaled a cautious near-term backdrop in 2026, including headwinds from DMS duplicative costs during the Techeon transition and ongoing macro uncertainties (tariffs, EV incentives). However, ABG remains confident that Techeon-driven productivity gains, a favorable mix shift toward luxury, and a disciplined approach to fixed operations position the company to deleverage toward sub-3x later in 2026 and to accelerate shareholder returns alongside selective tuck-in acquisitions.