Asbury Automotive Group (NYSE:ABG), one of the largest automotive retail and service companies in the U.S., reported mixed third-quarter results.
The company reported adjusted earnings of $7.17 per share, exceeding analyst estimates of $6.82.
Total revenue climbed 13% year over year to a record of $4.80 billion, coming in just below the $4.84 billion consensus estimate.
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Key Financial Metrics
Quarterly revenue comprised $2.5 billion in new-vehicle sales, up 17% from $2.2 billion in the third quarter of 2024; $1.23 billion in used-vehicle retail revenue, up 7% from $1.15 billion; and $185.5 million in used-vehicle wholesale revenue, up 27% from $146.2 million.
Parts and service revenue increased 11% to $659.4 million from $593.1 million, while the finance and insurance segment rose 8% to $200.3 million from $185.4 million.
The company achieved a record gross profit of $803 million, reflecting a 12% increase. The total gross profit margin was 16.7%, compared with 16.9% in the prior year, and the adjusted operating margin stood at 5.5%.
Same-store revenue rose 5% year over year to $4.3 billion. Same-store gross margin declined 43 basis points to 16.7% and same-store adjusted operating margin stood at 5.6%.
Liquidity and Share Repurchase Program
As of September 30, 2025, the company had $687 million in total liquidity, including $130 million in cash and floorplan offset and $557 million in revolver capacity, with a net leverage ratio of 3.2x.
Cash and cash equivalents totaled $32.2 million at the end of the quarter.
During the third quarter of 2025, the company repurchased about 220,500 shares for $50 million. As of September 30, 2025, approximately $226 million remained under its existing share repurchase authorization.
David Hult, Asbury's president and CEO, stated, "This was an important quarter in managing our growth strategy for Asbury, marked by the expansion of Tekion to all our stores in the Baltimore-DC market and integrating the Chambers group."
"Our results reflect the resiliency of the team. We intend to maintain our balanced capital allocation approach paired with optimizing our store portfolio while continuing to deliver strong service through these transformative points in our journey."
Strategic Divestiture
Separately, Kerrigan Advisors, a leading sell-side advisor to auto dealers nationwide, advised Asbury Automotive in the sale of its Larry H. Miller Chrysler Dodge Jeep Ram (CDJR) Riverdale dealership in Ogden, Utah, to Young Automotive.
Young Automotive, which operates dealerships across Utah, Idaho, and Montana, ranks as the 119th largest dealership group in the U.S., according to Automotive News.
The transaction aligns with Asbury's ongoing strategy to optimize its brand portfolio mix as part of its broader corporate growth and efficiency initiatives.
The sale of CDJR Riverdale brings Kerrigan Advisors' total transaction proceeds for dealership clients to nearly $10 billion since 2014, the highest amount achieved by any firm in the auto retail industry.
Price Action: ABG shares were trading higher by 3.25% to $241.96 at last check Tuesday.
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