Asbury Automotive Group delivered a solid start to 2025 with revenue of $4.15 billion and adjusted EPS of $6.82 in Q1, supported by a resilient gross profit framework and improving profitability in the parts and service ecosystem. Reported gross margin stood at 17.5% and adjusted EBITDA reached $240 million, underscoring a disciplined cost structure even as management cautioned on tariff-driven volatility and weather-related disruptions that weighed on volume in the quarter. Management highlighted momentum in fixed operations, a meaningful expansion in parts and service margins (gross profit margin up 170 bps in Q1 to 58.3%), and continued leverage from technology optimization through Techion, which is expected to lift productivity and reduce SG&A over time. The company also outlined strategic growth moves, including the pending Herb Chambers Automotive Group acquisition (target close after OEM approval by end-Q2) and portfolio optimization via asset divestitures (Colorado Nissan and SC Global). In addition, the Koons integration is advancing, with Techion rollout expanding beyond the four-store pilot and Koons stores transitioning toward full implementation anticipated by end of Q3 (with TCA rollout in Koons stores by early Q4). Net debt remained elevated but with a plan to deleverage over 18-24 months, aided by potential divestiture proceeds of $250-275 million and a broader liquidity position of roughly $964 million. While near-term profitability is exposed to tariffs and macro volatility, ABG’s resilient cash generation, acceleration of high-margin services, and strategic acquisitions position the company for steady-margin expansion and modest revenue upside as the cycle normalizes.