Asbury Automotive Group(US:ABG)2026-02-05 12:01Financial Performance - Fourth quarter 2025 net income was $60 million ($3.10 per diluted share), a decrease of 53% from $129 million ($6.54 per diluted share) in Q4 2024[3] - Adjusted net income for Q4 2025 was $129 million ($6.67 per diluted share), a decrease of 10% from $143 million ($7.26 per diluted share) in Q4 2024[3] - Total revenue for the full year 2025 reached an all-time record of $18 billion, with a transaction adjusted EBITDA of $1.1 billion[13] - Fourth quarter 2025 revenue was $4.7 billion, representing a growth of 4% year-over-year[5] - Total revenue for Q4 2025 was $4,676.5 million, a 4% increase from $4,504.5 million in Q4 2024[32] - Gross profit for the twelve months ended December 31, 2025, was $3,071.7 million, up 4% from $2,948.6 million in 2024[32] - Net income for the twelve months ended December 31, 2025, was $492.0 million, down from $560.8 million in 2024, representing a decline of 12.2%[47] - Total consolidated revenue for the twelve months ended December 31, 2025, was $17,999.0 million, an increase from $17,188.6 million in 2024, representing a growth of 4.7%[45] Revenue Breakdown - New vehicle revenue increased by 3% to $2,525.3 million in Q4 2025, compared to $2,457.1 million in Q4 2024[32] - Total used vehicle revenue for Q4 2025 was $1,291.6 million, a 3% increase from $1,258.5 million in Q4 2024[32] - Total luxury vehicle revenue increased by 36% year-over-year, with a 32% increase in the previous year[37] - Parts and service revenue rose by 14.1%, showing a significant increase from 13.1% in the previous year[37] - Parts and service revenue grew by 12% to $658.3 million, up from $590.4 million in Q4 2024[39] Expenses and Liabilities - Operating expenses for Q4 2025 rose by 11% to $528.7 million, compared to $476.9 million in Q4 2024[32] - Total current liabilities increased by 25% to $3,559.5 million as of December 31, 2025, from $2,836.3 million in 2024[34] - Long-term debt increased by 14% to $3,572.0 million as of December 31, 2025, from $3,138.6 million in 2024[34] - Selling, general and administrative (SG&A) expenses for 2025 totaled $1,987.6 million, representing 64.7% of gross profit[49] Shareholder Actions - The company repurchased approximately 212,000 shares for $50 million in Q4 2025, totaling approximately 433,000 shares for $100 million for the full year[15] - The weighted average common shares outstanding for diluted EPS calculation was 19.6 million in 2025, unchanged from 2024[49] Operational Metrics - Days supply of new vehicle inventory was 52 days as of December 31, 2025, compared to 58 days on September 30, 2025[35] - Used vehicle retail sales decreased by 4% to 33,782 units, compared to 35,328 units in Q4 2024[39] - Average selling price for new vehicles rose by 3% to $53,500 from $51,996 year-over-year[39] Asset Management - The company reported a gain on dealership divestitures of $80.2 million for the twelve months ended December 31, 2025, compared to $8.6 million in 2024[45] - The company incurred asset impairments totaling $141.0 million for the twelve months ended December 31, 2025, compared to $149.5 million in 2024[45] - The company reported asset impairments of $115.0 million for the three months ended December 31, 2025, with no asset impairments reported in the same period of 2024[48] Market Outlook - The overall market outlook remains positive, with expectations for continued growth in the luxury vehicle segment[37]