Asbury Automotive Group reported a mixed fourth quarter with record annual revenue but a significant year-over-year decline in net income and EPS, primarily due to substantial asset impairments. While total revenue grew, same-store revenue declined, indicating pressure on existing operations.
Achieved all-time record annual revenue of $18 billion, a 5% increase year-over-year.
positiveFourth quarter revenue reached a record $4.7 billion, up 4% year-over-year.
positiveFourth quarter gross profit increased 6% to $793 million, with gross margin improving 31 bps to 17.0%.
positiveSame store Used Retail Gross Profit increased 4% to $51 million, with GPU up 18% to $1,749.
positiveParts and service revenue increased 12% year-over-year in Q4, and gross profit increased 13%.
positiveResumed Tekion transition with implementation across 15 additional stores.
neutralNet income decreased 53% to $60 million ($3.10 per diluted share) in Q4 2025 from $129 million ($6.54 per diluted share) in Q4 2024.
negativeAdjusted net income decreased 10% to $129 million ($6.67 per diluted share) in Q4 2025 from $143 million ($7.26 per diluted share) in Q4 2024.
negativeSame store revenue decreased 6% in Q4 2025 compared to Q4 2024.
negativeSame store gross profit decreased 5% in Q4 2025 compared to Q4 2024.
negativeIncome from operations decreased 47% to $126.4 million in Q4 2025 from $239.7 million in Q4 2024.
negativeAsset impairments of $115 million in Q4 2025 significantly impacted net income.
negativeInventory levels increased 8% year-over-year to $2.14 billion.
attentionFloor plan notes payable increased 20% year-over-year to $2.03 billion.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Dealerships | N/A | — | — | — |
TCA | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our fourth quarter results wrapped up a productive year for Asbury.
This year, we acquired $2.9 billion in annualized revenue, repurchased $100 million in shares and continued our transition to Tekion.
We invested in our stores by deploying $186 million in capital expenditures and ended the year ahead of our leverage forecast, showing our discipline in running the business today with an eye towards our sustainable growth trajectory.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.