Highlights

  • Third quarter 2026 net income was $105 million, or $5.84 per diluted share, a decrease of 29% from $147 million.
  • Revenue for the third quarter was $4.4 billion and gross profit was $732 million, with a gross margin of 16.6%.
  • The company completed its company-wide Tekion conversion in mid-October and finished the Total Care Auto rollout across all Asbury stores in October.
  • Year to date through September 30, 2026, Asbury repurchased approximately 1.35 million shares for $278 million, leaving approximately $322 million of authorization.

Asbury Automotive Group (NYSE: ABG) shares were trading at USD 188.51 on October 27, 2026, up 8.99%, with a relative volume at time of 2.69. The automotive retail and service company converted 47 stores to Tekion in the third quarter, completed the company-wide conversion in mid-October, and reported third quarter 2026 results on October 27.

Asbury Automotive Group, Inc. is incorporated in Delaware and has its principal executive offices in Atlanta, Georgia. It is a Fortune 500 company and an automotive retailer. As of September 30, 2026, it operated 155 new vehicle dealerships, consisting of 197 franchises that represent 34 domestic and foreign brands of vehicles, and 37 collision repair centers. It also operates Total Care Auto, Powered by Asbury, which provides service contracts and other vehicle protection products.

Third Quarter 2026 Results

Asbury reported third quarter 2026 net income of $105 million ($5.84 per diluted share), a decrease of 29% from $147 million ($7.52 per diluted share) in the third quarter of 2025. Adjusted net income, a non-GAAP measure, was $111 million ($6.16 per diluted share), a decrease of 21% from $140 million ($7.17 per diluted share).

Total revenue was $4,413.6 million, compared with $4,800.9 million a year earlier, a decrease of 8%. New vehicle revenue was $2,293.0 million, down 9%. Used vehicle retail revenue was $1,153.8 million, down 6%, and parts and service revenue was $644.0 million, down 2%. Finance and insurance, net, revenue was $182.5 million, down 9%.

Gross profit was $731.5 million, down 9% from $802.5 million. Gross margin was 16.6%. Used vehicle retail gross profit was $62 million, and parts and service gross profit was $371 million. Used Retail unit volume increased 4.5% sequentially.

SG&A as a percentage of gross profit was 68.5%. Income from operations was $206.6 million, compared with $242.6 million.

For the nine months ended September 30, 2026, net income was $407.6 million, or $22.10 per diluted share, compared with $432.0 million, or $21.99 per diluted share, in the same period of 2025.

Balance Sheet, Liquidity and Share Repurchases

As of September 30, 2026, Asbury had cash, short term investments, and floorplan offset accounts of $210 million, which excludes $39 million of cash at Total Care Auto, Powered by Asbury. Availability under the used vehicle floorplan line and revolver was $821 million, for a total of $1.0 billion in liquidity. The transaction adjusted net leverage ratio was 3.5x at quarter end.

Long-term debt, including the current portion, was $3,369.6 million, compared with $3,572.0 million. Shareholders' equity was $4,031.5 million, compared with $3,891.9 million.

Year to date through September 30, 2026, the company repurchased approximately 1.35 million shares for $278 million. It had approximately $322 million remaining on its share repurchase authorization. The program does not require the company to repurchase any specific number of shares and may be modified, suspended or terminated at any time without further notice.

Technology and Strategic Initiatives

Dan Clara, President and Chief Executive Officer, said every active store is now operating on Tekion, and that teams converted 47 stores in the third quarter and finished the remaining active stores in October. He said the longest-tenured Tekion markets achieved customer pay gross profit up 7% and total parts and service gross profit up 5%.

Total Care Auto rollout was completed across all Asbury stores in October. In 2026, Asbury announced strategic initiatives called the Five Pillars: increasing new vehicle market share, driving profitable growth in used vehicles, re-establishing consistent growth in customer pay gross profit, managing SG&A and leveraging technology. The release did not include numerical financial guidance. Its forward-looking statements list risks including litigation, tariffs, supply chain disruptions, indebtedness and covenant compliance, and technology integration.