ABG · Asbury Automotive Group, Inc.

Asbury Automotive Group reported first quarter 2026 net income of $188 million ($9.87 per diluted share), a 42% increase from $132 million ($6.71 per diluted share) in the prior year quarter. However, adjusted net income, a non-GAAP measure, declined 24% to $102 million ($5.37 per diluted share) from $134 million ($6.82 per diluted share), reflecting the impact of divestitures, Tekion implementation expenses, weather-related losses, and duplicative DMS costs. Total revenue was $4.1 billion with gross profit of $727 million (17.7% margin). The company divested ten dealerships and terminated seven franchises during the quarter, generating net proceeds of approximately $210 million, as part of ongoing portfolio optimization. These divested stores contributed an estimated annualized revenue of $625 million. Management highlighted the rollout of Tekion across over 50% of stores as of April 28, 2026, which, along with adverse weather, created a learning curve that impacted results. CEO David Hult stated that the foundational investments position the company for efficiency gains and improved performance through the year. The company repurchased approximately 678,000 shares for $147 million during the quarter, with $453 million remaining under the $500 million buyback authorization. As of March 31, 2026, total liquidity stood at $1.2 billion, and the transaction adjusted net leverage ratio was 3.2x. The adjusted results exclude net gain on divestitures of $94 million ($4.96 per diluted share), Tekion implementation expenses of $5 million ($0.24 per diluted share), weather-related losses of $3 million ($0.15 per diluted share), and duplicative DMS-related expenses of $1 million ($0.08 per diluted share).