Asbury Automotive Group Reports Third-Quarter 2026 Results as Tekion Technology Rollout Reaches Completion
Asbury Automotive Group, Inc. one of the largest automotive retail and service companies in the United States, has reported its financial results for the third quarter of 2026, highlighting lower year-over-year earnings, continued investment in operational efficiency, and the completion of a major technology modernization initiative across its dealership network.
The company reported third-quarter 2026 net income of $105 million, or $5.84 per diluted share, compared with $147 million, or $7.52 per diluted share, in the third quarter of 2025. This represents a 29% decline in net income and a reduction in diluted earnings per share compared with the same period last year.
On an adjusted basis, Asbury Automotive Group reported net income of $111 million, or $6.16 per diluted share, for the third quarter of 2026. Adjusted net income, a non-GAAP financial measure, decreased 21% from $140 million, or $7.17 per diluted share, in the third quarter of 2025.
Despite the decline in earnings, the company continued to advance its technology strategy, strengthen its operational platform, and maintain substantial liquidity. One of the most significant developments during the quarter was the completion of the main rollout of Tekion’s dealership management system across its active dealership locations.
Asbury Completes Major Technology Modernization Initiative
A key highlight of the third-quarter results was Asbury Automotive Group’s progress in implementing Tekion, a modern dealership management technology platform designed to support dealership operations and improve business efficiency.
According to Dan Clara, Asbury’s President and Chief Executive Officer, the company has completed one of the most ambitious technology initiatives in its history. All active stores are now operating on the Tekion platform following an extensive implementation process.
During the third quarter alone, Asbury converted 47 stores to the new system, representing the largest number of dealership conversions completed in a single quarter. The company finished converting its remaining active stores in October 2026, bringing the broader rollout to completion.
The technology transition represents an important milestone for a dealership group operating across multiple locations and automotive retail markets. A common dealership management platform can help standardize processes, improve access to operational information, and support more consistent decision-making throughout the organization.
Clara also highlighted early operational improvements in the company’s longest-tenured Tekion markets. These locations recorded a 7% increase in customer-pay gross profit and a 5% increase in total parts and service gross profit.
These results suggest that the benefits of the new platform may extend beyond technology consolidation. By modernizing dealership systems, Asbury aims to improve service department performance, increase efficiency, and provide a stronger foundation for customer service.
With the rollout completed across its active stores, the company can now focus on utilizing the platform’s capabilities more consistently throughout its dealership network. A unified system may also help management evaluate performance across locations, identify opportunities for improvement, and respond more quickly to changing business conditions.
Third-Quarter Revenue Reaches $4.4 Billion
Asbury Automotive Group generated total revenue of $4.4 billion during the third quarter of 2026. The company reported gross profit of $732 million and a gross margin of 16.6%.
The results reflect the contribution of several major business areas, including new vehicle sales, used vehicle retailing, finance and insurance products, and parts and service operations.
New vehicle revenue reached $2.3 billion during the quarter, demonstrating the continued importance of new vehicle retailing to the company’s overall business. New vehicle sales remain a central component of dealership operations, while finance and insurance products and aftersales services provide additional revenue opportunities.
Used vehicle retail revenue totaled $1.2 billion, with used vehicle retail gross profit of $62 million. Used vehicle operations remain an important part of automotive retail because they provide customers with alternatives across different price points and vehicle categories.
The company’s performance also reflects the importance of balancing sales volumes, vehicle pricing, inventory management, and gross profit. Changes in vehicle availability, consumer demand, financing costs, and competitive conditions can influence dealership profitability.
Asbury’s results show that the company continues to operate across multiple revenue streams rather than relying exclusively on new vehicle sales. Its parts and service operations and finance and insurance activities contribute to the broader business model and can provide additional opportunities to maintain customer relationships after a vehicle purchase.
Same-Store Results Highlight Core Business Performance
Alongside its total company results, Asbury Automotive Group reported same-store financial performance to provide a view of operations at comparable locations.
Same-store revenue reached $4.2 billion in the third quarter of 2026, while gross profit totaled $695 million. The same-store gross margin was 16.6%, matching the reported total company gross margin.
New vehicle revenue from same-store operations amounted to $2.2 billion. Used vehicle retail revenue reached $1.1 billion, generating $59 million in used vehicle retail gross profit.
The same-store figures provide insight into the performance of the company’s established dealership operations without relying solely on changes in the overall size of the business.
Comparing same-store results with total company results can help investors assess the underlying performance of existing locations. It can also provide context when evaluating changes associated with acquisitions, dealership additions, divestitures, and other portfolio adjustments.
The reported figures indicate that comparable dealership locations continued to account for the majority of Asbury’s quarterly revenue and gross profit.
Parts and Service Operations Remain Important
Parts and service continued to be a significant contributor to Asbury Automotive Group’s financial performance during the third quarter.
For the total company, parts and service revenue reached $644 million, generating $371 million in gross profit. On a same-store basis, revenue totaled $613 million, while gross profit reached $353 million.
These operations include activities that support customers throughout vehicle ownership, such as maintenance, mechanical repairs, replacement parts, and other service-related work.
The parts and service business is strategically important to automotive retailers because customers may continue visiting dealership service departments long after purchasing a vehicle. Routine maintenance and repairs can help dealerships maintain customer relationships and generate recurring business.
The company’s reported results also provide an early indication of how its technology investments may support this area of operations. Asbury stated that its longest-tenured Tekion markets achieved a 7% increase in customer-pay gross profit and a 5% increase in total parts and service gross profit.
While these improvements relate to the company’s more experienced Tekion markets and should not automatically be interpreted as results across every dealership, they highlight the potential operational benefits of the platform.
As the technology becomes established across the network, Asbury can work toward improving consistency in service operations, supporting employee productivity, and strengthening the customer experience.
Finance and Insurance Performance
Finance and insurance, commonly referred to as F&I, remained another important component of Asbury’s dealership business.
The company reported total-company F&I gross profit per vehicle retailed of $2,176 during the third quarter of 2026. The same-store figure was slightly higher at $2,177 per vehicle retailed.
F&I products typically include financing arrangements and eligible insurance or protection products offered to customers during the vehicle purchasing process. These products can contribute to dealership gross profit in addition to revenue generated from vehicle sales.
Performance in this area can be affected by vehicle sales volumes, financing arrangements, product selection, customer demand, and the mix of vehicles retailed.
The nearly identical total-company and same-store F&I figures indicate that the reported average profit per vehicle retailed was broadly consistent across the two reporting categories.
Maintaining effective F&I operations is important for dealerships seeking to improve profitability while offering customers suitable financing and protection options.
Operating Expenses and Profitability
Asbury Automotive Group reported selling, general and administrative expenses, commonly known as SG&A, at 68.5% of gross profit for the total company during the third quarter of 2026.
On an adjusted basis, SG&A represented 67.4% of gross profit.
For same-store operations, SG&A accounted for 68.2% of gross profit, while adjusted SG&A represented 67.0%.
These ratios help illustrate how much of the company’s gross profit is consumed by operating expenses. Dealership expenses can include employee compensation, facility costs, advertising, administrative functions, and other costs associated with running retail and service operations.
Asbury reported an operating margin of 4.7% for both total-company and same-store operations. Adjusted operating margin was 4.9% for both categories.
The difference between reported and adjusted operating measures reflects the company’s treatment of certain items that management considers outside its adjusted performance presentation.
Monitoring expenses relative to gross profit is particularly important in automotive retail, where changes in vehicle margins, sales volumes, and operating costs can influence overall profitability.
The completed Tekion implementation may support future efficiency efforts by providing a common technology foundation. However, the financial benefits of the rollout will depend on how effectively the company uses the system and whether operational improvements can be sustained across its locations.
Adjusted Earnings and Special Items
Asbury’s adjusted financial results exclude certain items that management identifies separately to provide an additional view of operating performance. These measures are not calculated under generally accepted accounting principles, or GAAP, and should be considered alongside the company’s reported financial results.
For the third quarter of 2026, adjusted net income excludes several items on an after-tax basis.
These include $6 million, equivalent to $0.32 per diluted share, in Tekion implementation expenses. The adjustments also include $1 million, or $0.03 per diluted share, in duplicative dealership management system expenses and $1 million, or $0.03 per diluted share, related to a net gain on divestitures.
The technology implementation costs reflect the expenses associated with transitioning dealership locations to the new operating platform. Duplicative system costs can arise when companies maintain existing and replacement systems during a technology conversion.
For comparison, third-quarter 2025 adjusted net income excluded a broader set of items. These included a $27 million net gain on divestitures, equivalent to $1.37 per diluted share; a $9 million non-cash asset impairment related to a pending disposal, or $0.45 per diluted share; and $7 million in professional fees associated with the acquisition of the Herb Chambers Automotive Group, or $0.37 per diluted share.
The prior-year adjustments also included $2 million in income tax expense associated with a deferred tax true-up for the Herb Chambers Automotive Group acquisition, equivalent to $0.12 per diluted share, and $2 million in Tekion implementation expenses, or $0.09 per diluted share.
The company provides these reconciliations to help investors understand the differences between GAAP results and management’s adjusted financial measures. Investors should review the full financial disclosures when comparing performance across reporting periods.
Liquidity and Leverage Position
As of September 30, 2026, Asbury Automotive Group reported approximately $1.0 billion in total liquidity.
The company held $210 million in cash, short-term investments, and floorplan offset accounts. This amount excluded $39 million of cash held at Total Care Auto, Powered by Asbury.
In addition, the company had $821 million available under its used vehicle floorplan line and revolving credit facility.
Liquidity is an important consideration for automotive retailers because dealership operations require significant capital to support vehicle inventories, property and equipment, employee expenses, and other business needs.
Access to cash and available credit can help a dealership group manage working capital requirements and respond to changing market conditions. It can also provide financial flexibility when considering strategic acquisitions, technology investments, and other capital allocation opportunities.
Asbury’s transaction-adjusted net leverage ratio stood at 3.5 times at quarter-end. This measure provides an indication of the company’s leverage relative to its adjusted financial base, although a complete assessment requires consideration of the company’s debt structure, earnings, cash flow, and contractual obligations.
Maintaining an appropriate balance between debt, liquidity, and investment requirements will remain important as the company continues to operate and develop its dealership portfolio.
Share Repurchases and Capital Allocation
Asbury Automotive Group continued to return capital to shareholders through its share repurchase program.
Year-to-date through September 30, 2026, the company had repurchased approximately 1.35 million shares for a total cost of $278 million.
At the end of the reporting period, approximately $322 million remained available under the company’s share repurchase authorization.
The program allows Asbury to repurchase shares from time to time through open-market transactions, privately negotiated purchases, or other methods permitted under applicable federal securities laws and relevant legal and contractual requirements.
The company has not committed to repurchasing a specific number of shares. The timing and volume of future repurchases will depend on several factors, including the company’s share price, economic conditions, market developments, capital structure considerations, and the expected returns from alternative uses of capital.
These alternative uses include potential dealership acquisitions and capital investments that could support the company’s longer-term growth strategy.
Asbury also retains the flexibility to modify, suspend, or terminate the repurchase program at any time without further notice.
The remaining authorization provides the company with an option to continue repurchasing shares, but it does not guarantee that the full amount will be used.
Technology, Efficiency, and Operational Execution
Asbury Automotive Group’s third-quarter 2026 results reflect a period of lower year-over-year earnings alongside continued investment in its operating capabilities.
The company generated $4.4 billion in revenue and $732 million in gross profit, while adjusted net income reached $111 million. Its liquidity position remained approximately $1.0 billion at quarter-end, and it continued to allocate capital toward share repurchases.
The completion of the Tekion implementation represents a major operational milestone. With all active stores operating on the new platform following the final conversions in October, Asbury now has a common technology foundation across its active dealership network.
The next phase will involve translating that investment into consistent operational improvements, better access to business information, and more efficient dealership processes. The reported performance of the company’s longest-tenured Tekion markets provides an early indication of potential benefits, particularly in customer-pay and parts and service gross profit.
At the same time, the company will need to manage operating expenses, maintain liquidity, and balance shareholder returns with other investment opportunities.
Overall, Asbury Automotive Group’s third-quarter results highlight the importance of operational execution and technology modernization in a competitive automotive retail market. Although earnings declined compared with the previous year, the completed dealership management system rollout, continued service business contribution, and available liquidity provide important context for assessing the company’s financial position and future operating priorities.
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