Asbury Automotive Group Delivers Solid Full-Year Growth Despite Fourth-Quarter Earnings Pressure
Asbury Automotive Group, Inc.one of the largest automotive retail and service operators in the United States, has reported its financial results for the fourth quarter and full year ended 2025. While fourth-quarter net income declined year over year due largely to non-cash charges and strategic portfolio actions, the Company closed the year with record revenue, disciplined capital deployment, and continued progress on its long-term growth strategy.
The results reflect a year marked by acquisitions, technology transformation, capital investment, and shareholder returns—positioning Asbury to navigate ongoing market normalization while strengthening its operational foundation.
Leadership Perspective: A Year of Strategic Execution
Commenting on the quarter and the year, David Hult, President and Chief Executive Officer of Asbury Automotive Group, emphasized the Company’s focus on sustainable growth and disciplined execution.
“Our fourth quarter results wrapped up a productive year for Asbury,” Hult said. “In 2025, we acquired $2.9 billion in annualized revenue, repurchased $100 million in shares, and continued our transition to Tekion. We also invested significantly in our stores, deploying $186 million in capital expenditures, while ending the year ahead of our leverage forecast. These actions demonstrate our ability to operate the business effectively today while maintaining a clear focus on long-term value creation.”
Throughout 2025, Asbury balanced expansion with financial discipline, continuing to optimize its dealership portfolio while investing in technology and infrastructure designed to enhance customer experience and operational efficiency.
Fourth Quarter 2025 Financial Performance
For the fourth quarter of 2025, Asbury reported net income of $60 million, or $3.10 per diluted share, compared with $129 million, or $6.54 per diluted share, in the fourth quarter of 2024. This represents a 53% year-over-year decline in reported net income.
On an adjusted basis—a non-GAAP measure that excludes certain non-recurring and non-cash items—fourth-quarter adjusted net income totaled $129 million, or $6.67 per diluted share, compared with $143 million, or $7.26 per diluted share, in the prior-year period. Adjusted earnings per share declined approximately 10% year over year.
Impact of Non-GAAP Adjustments
Adjusted results for the fourth quarter of 2025 exclude several items, net of tax, that significantly impacted reported earnings. These included:
- $87 million in non-cash asset impairments, equivalent to $4.50 per diluted share
- A $26 million net gain on divestitures, or $1.35 per diluted share
- $5 million related to Tekion implementation expenses
- $3 million in non-cash fixed asset write-offs
- $1 million in professional fees associated with the acquisition of the Herb Chambers Automotive Group
By comparison, adjusted net income for the fourth quarter of 2024 excluded non-cash asset impairments, losses related to Hurricane Milton, and proceeds from the termination of a franchise agreement.
Portfolio Optimization and Store Divestitures
As part of its ongoing capital allocation and portfolio optimization strategy, Asbury divested four dealership locations during the fourth quarter of 2025. These stores generated an estimated $150 million in annualized revenue.
Management has consistently emphasized a disciplined approach to acquisitions and divestitures, focusing on markets and brands that align with the Company’s long-term profitability and growth objectives.
Fourth Quarter 2025 Operational Highlights
Total Company Performance (Compared to Q4 2024)
On a consolidated basis, Asbury delivered solid revenue growth in the fourth quarter, driven by acquisitions and strength in high-margin service operations.
- Revenue: $4.7 billion, up 4% year over year
- Gross Profit: $793 million, up 6%
- Gross Margin: Increased by 31 basis points to 17.0%
- New Vehicle Revenue: Increased 3%
- Used Vehicle Retail Revenue: Increased 1%
- Used Vehicle Retail Gross Profit: Increased 16%
- F&I Profit per Vehicle Retailed (PVR): $2,334
- Parts and Service Revenue: Increased 12%
- Parts and Service Gross Profit: Increased 13%
Selling, General, and Administrative (SG&A) expenses represented 66.7% of gross profit, while adjusted SG&A declined to 65.3%, reflecting ongoing cost management efforts.
Operating margin for the quarter was 2.7%, while adjusted operating margin reached 5.4%.
Same-Store Performance
Same-store results reflected industry-wide volume normalization and pricing pressure, particularly in vehicle retailing, partially offset by resilience in service operations.
- Same-Store Revenue: $4.0 billion, down 6%
- Same-Store Gross Profit: $683 million, down 5%
- Gross Margin: Improved 26 basis points to 17.0%
- New Vehicle Revenue: Decreased 6%
- Used Vehicle Retail Revenue: Decreased 10%
- Used Vehicle Retail Gross Profit: Increased 4%
- F&I PVR: $2,335
- Parts and Service Revenue: Increased 2%
- Parts and Service Gross Profit: Increased 2%
SG&A as a percentage of same-store gross profit was 65.5%, with adjusted SG&A at 64.1%. Same-store operating margin stood at 2.5%, while adjusted operating margin improved to 5.6%.
Full-Year 2025 Financial Results
Despite fourth-quarter pressure, Asbury delivered a strong full-year performance in 2025.
- Net Income: $492 million, or $25.13 per diluted share, compared with $430 million, or $21.50 per diluted share, in 2024
- Year-over-Year EPS Growth: 17%
- Adjusted Net Income: $550 million, or $28.10 per diluted share, compared with $545 million, or $27.24 per diluted share, in 2024
- Adjusted EPS Growth: 3%
Record Revenue and Cash Generation
Total revenue for the full year reached an all-time high of $18 billion, underscoring the scale and diversification of Asbury’s business model.
- Transaction Adjusted EBITDA: $1.1 billion
- Adjusted Operating Cash Flow: $651 million
The Company’s strong cash generation supported continued investment in acquisitions, technology, facilities, and shareholder returns.
Liquidity and Balance Sheet Strength
As of December 31, 2025, Asbury maintained a strong liquidity position.
- Cash and Floorplan Offset Accounts: $180 million (excluding $12 million held at Total Care Auto, Powered by Asbury)
- Availability Under Used Vehicle Floorplan Line and Revolver: $747 million
- Total Liquidity: $927 million
The Company’s transaction-adjusted net leverage ratio stood at 3.2x, finishing the year ahead of management’s leverage forecast and reflecting prudent balance-sheet management.
Share Repurchase Activity
Asbury remained committed to returning capital to shareholders during 2025.
- Fourth Quarter 2025: Repurchased approximately 212,000 shares for $50 million
- Full Year 2025: Repurchased approximately 433,000 shares for $100 million
As of December 31, 2025, approximately $176 million remained available under the Company’s share repurchase authorization.
Management reiterated that share repurchases may occur through open-market transactions, privately negotiated deals, or other methods permitted under applicable regulations. The timing and scale of repurchases will depend on market conditions, share price, capital needs, and strategic investment opportunities.
Technology Transformation and Outlook
A key strategic initiative during 2025 was Asbury’s continued transition to the Tekion cloud-based dealer management system, which is expected to enhance digital retailing capabilities, improve operational efficiency, and support long-term scalability.
Looking ahead, management remains focused on disciplined acquisitions, operational execution, cost control, and maximizing returns on invested capital as the automotive retail environment continues to normalize.
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