Asbury Automotive Group(US:ABG)2025-10-28 10:47Financial Performance - Record third quarter 2025 net income of $147 million ($7.52 per diluted share), up 16% from $126 million ($6.37 per diluted share) in Q3 2024[2] - Adjusted net income for Q3 2025 was $140 million ($7.17 per diluted share), an increase of 11% from $126 million ($6.35 per diluted share) in Q3 2024[2][5] - Net income for Q3 2025 reached $147.1 million, a 16% increase from $126.3 million in Q3 2024[25] - Diluted EPS for the three months ended September 30, 2025, was $7.52, compared to $6.37 in the same period of 2024, representing a growth of 18.1%[40] - For the nine months ended September 30, 2025, net income was $432.0 million, a decrease of 45.8 million compared to the previous year[41] - Diluted EPS for the same period was $21.99, down from $23.74, reflecting a decrease of 1.75[41] Revenue Growth - Total revenue reached $4.8 billion, representing a growth of 13% year-over-year[5] - Total revenue for Q3 2025 was $4,800.9 million, a 13% increase from $4,236.7 million in Q3 2024[25] - New vehicle revenue increased by 17% to $2,528.9 million in Q3 2025, compared to $2,163.5 million in Q3 2024[25] - Used vehicle retail revenue grew by 7% to $1,226.8 million in Q3 2025, while wholesale revenue surged by 27% to $185.5 million[25] - Total revenue for the three months ended September 30, 2025, was $4,800.9 million, a 13% increase from $4,236.7 million in 2024[31] - New vehicle revenue reached $2,528.9 million, up 17% from $2,163.5 million year-over-year[31] Profitability Metrics - Gross profit for Q3 2025 was $803 million, a 12% increase compared to the previous year[5] - Total gross profit for the company remained stable at 100.0% year-over-year[29] - Total gross profit increased to $802.5 million, a 12% rise compared to $718.0 million in the same period last year[31] - Parts and service gross profit rose by 15% to $389.1 million, compared to $337.1 million in 2024[31] - The company reported a total gross profit margin of 16.7%, slightly down from 16.9% year-over-year[31] Operating Expenses - Operating expenses for the quarter were $527.1 million, a 13% increase from $466.5 million in the same quarter last year[31] - Operating expenses increased by 2% to $453.8 million in Q3 2025, compared to $445.2 million in Q3 2024[33] - Selling, general and administrative (SG&A) expenses for the nine months ended September 30, 2025, were $1,458.9 million, representing 64.0% of gross profit[41] - The company reported a decrease in SG&A as a percentage of gross profit from 64.2% in 2024 to 64.0% in 2025[41] Liquidity and Debt - The company had $687 million in total liquidity as of September 30, 2025[9] - Long-term debt increased to $3,605.3 million as of September 30, 2025, from $3,138.6 million at the end of 2024[26] - Adjusted long-term net debt for September 30, 2025, was $3,467.1 million, compared to $2,403.7 million in 2024[39] - The transaction adjusted net leverage ratio was 3.2x at the end of the quarter[9] - The adjusted leverage ratio as of September 30, 2025, was 3.2, compared to 2.5 in the previous year[39] Share Repurchase and Inventory - Approximately 220,500 shares were repurchased for $50 million during Q3 2025, with $226 million remaining on the share repurchase authorization[11] - Inventory increased to $2,318.9 million as of September 30, 2025, up from $1,978.8 million at the end of 2024[26] - Days supply of new vehicle inventory was 58 days as of September 30, 2025, compared to 72 days in the same period of 2024[27] Vehicle Sales and Market Performance - New vehicle unit volume increased by 13%, with new vehicle revenue rising by 17% and gross profit increasing by 7%[10] - Used vehicle retail sales grew by 25.6% compared to the same period last year[29] - Domestic vehicle sales represented 27% of total sales, a decrease from 29% in the previous year[29] - The used to new vehicle sales ratio decreased to 78.4% from 87.7% year-over-year[31] - The used to new vehicle sales ratio was 79.5% in Q3 2025, down from 88.4% in Q3 2024[33]