Asbury Automotive Group Reports Second Quarter 2026 Results While Advancing Enterprise Technology Transformation
Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the United States, has reported its financial results for the second quarter of 2026, highlighting steady operational performance despite a challenging retail environment and ongoing investments in enterprise-wide technology modernization. The company generated revenue of $4.4 billion during the quarter while continuing to execute a large-scale dealership management system (DMS) transformation and maintaining a disciplined capital allocation strategy through significant share repurchases.
For the quarter ended June 30, 2026, Asbury posted net income of $115 million, or $6.25 per diluted share, compared with $153 million, or $7.76 per diluted share, recorded during the same period in 2025. The year-over-year decline reflects both market conditions and the impact of strategic investments associated with the company’s technology transformation.
On an adjusted basis, which excludes several one-time and non-operating items, the company reported adjusted net income of $125 million, or $6.82 per diluted share, compared with $146 million, or $7.43 per diluted share, in the second quarter of the previous year. While adjusted earnings declined by approximately 15%, management emphasized that current investments are expected to strengthen long-term operational performance and improve customer experiences across its nationwide dealership network.
Technology Transformation Reaches Major Milestone
A key highlight of the quarter was Asbury’s continued implementation of the Tekion dealership management system, one of the company’s largest enterprise technology initiatives in recent years.
President and Chief Executive Officer Dan Clara stated that approximately 70% of the Tekion rollout has now been completed across the organization. The company remains on track to complete implementation throughout its dealership operations during the fall of 2026.
Management described the conversion as a major milestone in Asbury’s digital transformation strategy. Although replacing a dealership management system requires extensive planning, employee training, operational adjustments, and significant financial investment, executives believe the project will generate substantial long-term benefits.
According to Clara, the new platform is designed to create a more personalized retail experience for customers while providing dealership employees with modern digital tools that simplify workflows and improve productivity. Early results from locations that have already transitioned to the new system have been encouraging, with management reporting noticeable operational improvements.
The company believes that enhanced technology infrastructure will support stronger customer engagement, faster service processes, improved inventory management, and more efficient dealership operations over time.
Balanced Capital Allocation Remains a Priority
Alongside investments in technology, Asbury continued returning capital to shareholders during the second quarter through its active share repurchase program.
During the quarter, the company repurchased approximately 668,000 shares of common stock for $131 million. Through the first six months of 2026, total share repurchases reached approximately 1.35 million shares valued at $278 million.
Following these transactions, approximately $322 million remained available under the company’s existing share repurchase authorization as of June 30, 2026.
Management noted that future repurchases will continue to depend on several factors, including stock valuation, overall market conditions, liquidity requirements, acquisition opportunities, capital investment priorities, and the company’s long-term financial strategy.
Shares may continue to be repurchased through open market transactions, privately negotiated purchases, or other methods permitted under applicable securities regulations.
Revenue Performance Across Business Segments
During the second quarter, Asbury generated total revenue of $4.4 billion, demonstrating continued strength across its diversified automotive retail operations.
The company reported gross profit of $753 million, producing a gross margin of 17.2%.
New vehicle sales remained the company’s largest revenue contributor, generating $2.3 billion during the quarter despite continued pricing normalization across portions of the automotive market.
Used vehicle retail operations produced $1.1 billion in revenue, while generating $66 million in gross profit. Used vehicle operations remain an important component of Asbury’s overall retail strategy, complementing new vehicle sales and supporting recurring customer relationships.
Finance and insurance (F&I) operations continued delivering healthy profitability, with finance and insurance profit per vehicle retailed (PVR) reaching $2,216 during the quarter. These services include vehicle financing arrangements, extended service contracts, prepaid maintenance plans, guaranteed asset protection products, and other aftermarket offerings that provide additional value to vehicle buyers.
Strong Parts and Service Business
The company’s fixed operations once again represented one of its strongest business segments.
Parts and service revenue totaled $635 million, generating gross profit of $374 million during the second quarter.
This business continues to provide stable recurring revenue regardless of fluctuations in vehicle sales volumes. Maintenance services, repairs, replacement parts, collision repair, and customer retention programs remain essential contributors to Asbury’s long-term profitability.
The continued strength of parts and service operations also reflects the company’s focus on building lasting customer relationships beyond initial vehicle purchases.
Expense Management and Profitability
Asbury maintained disciplined expense management while continuing to invest heavily in its technology modernization initiatives.
Selling, General and Administrative (SG&A) expenses represented 67.2% of gross profit during the quarter.
After excluding certain one-time expenses, adjusted SG&A accounted for 66.0% of gross profit, illustrating management’s continued focus on operating efficiency despite significant implementation costs associated with the Tekion rollout.
The company reported an operating margin of 5.0%, while adjusted operating margin reached 5.3%, demonstrating resilient profitability amid ongoing strategic investments.
Same Store Performance
Excluding acquisitions and recently added operations, Asbury’s same-store dealership network continued to generate solid financial results.
Same-store revenue totaled $3.8 billion, producing gross profit of $643 million with a gross margin of 17.1%.
Same-store new vehicle revenue reached $2.0 billion, while used vehicle retail sales generated $930 million in revenue and $56 million in gross profit.
Finance and insurance performance remained consistent across comparable dealerships, with same-store F&I profit per vehicle retailed totaling $2,214.
Parts and service operations within same-store locations generated $551 million in revenue and $323 million in gross profit, underscoring the continued strength of the company’s service-focused business model.
Same-store SG&A expenses represented 66.4% of gross profit, improving to 65.3% on an adjusted basis. Operating margin reached 5.2%, while adjusted operating margin increased to 5.4%. Adjusted Financial Results
Asbury’s adjusted earnings exclude several items that management believes are not representative of ongoing operating performance.
For the second quarter of 2026, adjusted net income excluded approximately:
- $4 million in Tekion implementation expenses.
- $3 million in non-cash asset impairment charges.
- $2 million in weather-related losses.
- $1 million in duplicative dealership management system-related expenses.
By excluding these items, management aims to provide investors with a clearer view of underlying operating performance while the company completes its technology transformation.
Similarly, adjusted results for the second quarter of 2025 excluded cyber insurance recovery proceeds, gains from divestitures, and acquisition-related professional fees associated with The Herb Chambers Automotive Group transaction.
Strong Liquidity Position
Asbury ended the quarter with a solid liquidity profile that supports continued investments, acquisitions, and shareholder returns.
As of June 30, 2026, the company held $154 million in cash, short-term investments, and floorplan offset accounts. This figure excludes $26 million held by Total Care Auto, Powered by Asbury.
In addition, Asbury had $812 million available under its used vehicle floorplan financing facility and revolving credit arrangements.
Combined, the company maintained approximately $966 million in total liquidity, providing significant financial flexibility to support future strategic initiatives.
The company’s transaction-adjusted net leverage ratio stood at 3.4 times at quarter-end, reflecting a balanced capital structure while continuing to invest in business growth.
Continuing Strategic Growth
Beyond quarterly financial performance, Asbury continues pursuing its multi-year strategy centered on organic growth, acquisitions, operational excellence, and digital innovation.
The Tekion implementation represents one of the most significant components of this strategy, positioning the company to modernize dealership operations while delivering improved experiences for customers and employees alike.
Management believes combining advanced technology platforms with disciplined capital allocation, strong fixed operations, and selective acquisitions will support sustainable long-term growth despite changing automotive market conditions.
About Asbury Automotive Group
Headquartered in Atlanta, Georgia, Asbury Automotive Group is a Fortune 500 company and one of the largest automotive retailers in the United States. As of June 30, 2026, the company operated 158 new vehicle dealerships, representing 202 franchises across 34 domestic and international automotive brands.
In addition to its dealership network, Asbury operates Total Care Auto, Powered by Asbury, a leading provider of vehicle protection products and service contracts, as well as 37 collision repair centers. The company offers a comprehensive portfolio of automotive products and services, including new and used vehicle sales, maintenance and repair services, replacement parts, collision repair, financing solutions, extended service contracts, guaranteed asset protection products, and prepaid maintenance programs.
Asbury has also received multiple industry recognitions, including being named among America’s Fastest Growing Companies by the Financial Times, one of the World’s Most Trustworthy Companies by Newsweek, one of America’s Most Successful Small-Cap Companies by Forbes, and one of America’s Best Companies 2026 by TIME. These accolades reflect the company’s ongoing commitment to operational excellence, customer satisfaction, and long-term shareholder value.
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