Highlights

  • Second quarter 2026 revenue was $4.38 billion, little changed, while net income fell 25% to $114.6 million.
  • New vehicle gross profit declined 14% to $138.2 million, while parts and service gross profit grew 5% to $374.2 million.
  • Six-month net income rose 6% to $302.4 million, including a $125.8 million pre-tax gain on dealership divestitures.
  • The company repurchased 1.35 million shares for $277.6 million in six months and reported $966.5 million of available liquidity.

Asbury Automotive Group (NYSE:ABG) shares were trading near their 52-week low at USD 165.10 on October 21, 2026, down 4.08%. The automotive retailer reported second quarter 2026 results in a Form 10-Q filed on July 31, 2026, with flat revenue, lower quarterly earnings and an expanded share repurchase authorization announced in February.

Based in Atlanta, Georgia, Asbury is a Delaware corporation organized in 2002 and describes itself as one of the largest automotive retailers in the United States. As of June 30, 2026, it owned and operated 202 new vehicle franchises at 158 dealership locations, representing 34 brands in 14 states, along with 37 collision centers. It reports two segments: Dealerships, which sell new and used vehicles, parts and service, and finance and insurance products; and Total Care Auto, Powered by Asbury, its provider of finance and insurance products. Its fiscal year ends December 31.

Flat Revenue, Lower Quarterly Earnings

Total revenue for the quarter ended June 30, 2026 was $4.38 billion, up $11.5 million from a year earlier. New vehicle revenue rose 1% to $2.33 billion, parts and service revenue rose 6% to $634.6 million, and used vehicle revenue fell 4% to $1.24 billion. Gross profit was $753.1 million, roughly level with $751.9 million, and gross margin held at 17.2%.

Profit moved lower. Income from operations decreased 15% to $219.5 million as selling, general and administrative expense rose 7% to $506.4 million, depreciation and amortization increased 21%, and the company recorded a $4.2 million franchise rights impairment tied to a dealership held for sale. Floor plan interest expense rose 19% to $21.6 million, and other interest expense climbed 12% to $46.5 million. Net income was $114.6 million versus $152.8 million, and diluted EPS was $6.25 versus $7.76.

New vehicle gross profit fell 14% to $138.2 million ($3,124 per vehicle versus $3,601), while same store new vehicle gross profit dropped 24%. Parts and service gross profit grew 5% to $374.2 million and provided 49.7% of total gross profit. Finance and insurance gross profit rose 2% to $171.4 million. The results include the Herb Chambers dealerships acquired in July 2025, offset by dealership divestitures in 2025 and February 2026.

Divestitures, Buybacks and Liquidity

For the six months, revenue was $8.50 billion, net income rose 6% to $302.4 million and diluted EPS increased to $16.20 from $14.46. The period included a $125.8 million pre-tax gain from selling 14 franchises at 10 locations for $361.5 million.

Asbury repurchased and retired 1,346,359 shares under its program for $277.6 million over the six months. In February 2026, its board lifted the authorization by $424.0 million to $500.0 million, and $322.4 million remained at June 30. Net cash provided by operating activities was $352.6 million, up from $316.4 million, while adjusted cash flow from operations, a non-GAAP measure, was $305.2 million versus $334.0 million.

Total available liquidity was $966.5 million, including $782.0 million of availability under the revolving credit facility. Senior notes outstanding total $850.0 million, due in 2028 and 2030, and the company was in compliance with its covenants. Its 2021 syndicated real estate facility matures in December 2026, and it expects to refinance the full outstanding principal before then.

Management cited tariffs, interest rates, consumer confidence and supply constraints at some manufacturers among its risk factors, and said it converted 25 stores to the Tekion dealer management system during the quarter.

Capital Spending Plans and Rollout

The company expects 2026 capital expenditures of about $250.0 million for facility upgrades, new construction, service capacity, technology and equipment. Capital spending excluding real estate purchases was $117.4 million in the first six months.

It also expects to complete the rollout of Total Care Auto products across its dealerships in 2026, including the Herb Chambers platform, although it said no assurance can be given that the rollout will finish within that timeframe. The filing contains no quantitative earnings guidance.