Financial Data and Key Metrics Changes - The company reported a record revenue of $4.7 billion for the fourth quarter, with a gross profit of $793 million, also a record, resulting in a gross profit margin of 17%, an expansion of 31 basis points year-over-year [8][9] - Adjusted earnings per share (EPS) for the quarter was $6.67, with an adjusted net income of $129 million [15][9] - The adjusted EBITDA was $250 million, and the adjusted operating margin was 5.4% [8][9] Business Line Data and Key Metrics Changes - New vehicle sales volume decreased by 6% year-over-year, with average gross profit per vehicle at $3,135, reflecting a slight decrease [10] - Used vehicle gross profit increased by 6% year-over-year, with retail gross profit per unit rising 18% to $1,749 [11] - Parts and service gross profit increased by 2% year-over-year, with total revenue growing 12% to $658 million, marking a record for the fourth quarter [13] Market Data and Key Metrics Changes - Same-store new vehicle supply was at 49 days at the end of December, down from 58 days at the end of the third quarter [10] - The company noted a pullback in consumer spending in parts and service, although there is optimism about the outlook for fixed operations [7] Company Strategy and Development Direction - The company is focused on managing its portfolio and allocating capital to areas that generate the greatest returns, with plans to divest four stores in the quarter and another nine by the end of the first quarter [8][6] - The transition to the Tekion DMS is a key strategic initiative, with 38 stores operating on the new system by year-end, aiming for efficiency and improved guest experience [5][14] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2026 due to weather impacts and ongoing adjustments in the market, with expectations for improvement in the second half [20][21] - The company is optimistic about the parts and service business, despite recent consumer spending pullbacks, and expects to benefit from the aging vehicle population and technological advancements [13][21] Other Important Information - The company deployed $186 million in capital expenditures and repurchased $50 million in shares during the quarter [5][8] - The transaction-adjusted net leverage ratio was 3.2x at year-end, better than expected, providing room for continued strategic capital decisions [16] Q&A Session Summary Question: Outlook for 2026 and market conditions - Management expects a slight decrease in SAR and anticipates challenges in the first half of 2026, with potential improvements in the second half as inventory levels stabilize [20][21] Question: Customer pay growth in parts and service - Management expressed dissatisfaction with customer pay growth and emphasized a renewed strategy to maximize gross profit while managing costs effectively [35][36] Question: Tekion rollout and its impact - The rollout of Tekion is expected to be completed by the third quarter of 2026, with initial stores showing efficiency benefits, although there will be some duplicated costs in the first half [44][45][57] Question: EV inventory levels and demand - Management believes EV inventory is right-sized overall, with some regional discrepancies, and expects a continued decline in EV sales as tax credits are removed [72] Question: Leverage and divestitures - Management plans to reduce leverage below three times by summer 2026, contingent on share price and cash deployment strategies [40]

Asbury Automotive Group (NYSE:ABG) Q4 2025 Earnings call February 05, 2026 09:00 AM ET Speaker9Greetings and welcome to the Asbury Automotive Group fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Chris Reeves, Vice Presi ...

分组1 - Asbury Automotive Group reported quarterly earnings of $6.67 per share, missing the Zacks Consensus Estimate of $6.7 per share, and down from $7.26 per share a year ago, representing an earnings surprise of -0.50% [1] - The company posted revenues of $4.68 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.04%, compared to year-ago revenues of $4.5 billion [2] - Asbury Automotive shares have increased by approximately 1.9% since the beginning of the year, outperforming the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $6.59 on revenues of $4.53 billion, and for the current fiscal year, it is $27.38 on revenues of $19.26 billion [7] - The Zacks Industry Rank for Automotive - Retail and Whole Sales is currently in the top 39% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Asbury Automotive was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

2025 Fourth Quarter Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, objectives, beliefs, expectations and assumptions, projections regarding Asbury's financial position, liquidity, results of operations, cash flows, leverage, market position, the timing and amount of any stock ...

Exhibit 99.1 Investors & Reporters May Contact: Joe Sorice Sr. Manager, Investor Relations (770) 418-8211 ir@asburyauto.com Asbury Automotive Group Reports Fourth Quarter Results ATLANTA, GA. (February 5, 2026) — Asbury Automotive Group, Inc. (NYSE: ABG) (the "Company"), one of the largest automotive retail and service companies in the U.S., reported financial results for the fourth quarter of 2025. The Company reported fourth quarter 2025 net income of $60 million ($3.10 per diluted share), a decrease of 5 ...

The market expects Asbury Automotive Group (ABG) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Asbury Automotive Group (ABG) . This company, which is in the Zacks Automotive - Retail and Whole Sales industry, shows potential for another earnings beat.This auto dealership chain has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two ...

Core Viewpoint - The Zacks Auto Retail and Wholesale industry is experiencing a mixed operating environment, with challenges such as slowing vehicle sales, high borrowing costs, and affordability constraints, while some companies are positioned to outperform through strategic acquisitions and digital initiatives [1] Industry Overview - The auto retail and wholesale industry is crucial for delivering vehicles and parts to consumers, operating through dealership networks and retail chains [2] - The industry's performance is closely tied to economic conditions, with consumer spending on vehicles typically increasing during economic growth and declining during downturns [2] - The COVID-19 pandemic has accelerated the shift towards online tools and e-commerce, a trend expected to continue [2] Factors Shaping Industry Dynamics - U.S. vehicle sales are projected to decline, with total new vehicle sales expected to be around 15.8 million units in 2026, a 2.4% year-over-year decrease, and new retail sales likely to fall 1.5% to 13.1 million units [3] - High interest rates, reduced manufacturer incentives, and tight household budgets are negatively impacting demand, while average new car prices are around $50,000 [3] - The EV market is facing uncertainty due to the loss of federal tax incentives, leading automakers to reduce EV investments and focus on gas and hybrid models [4] Strategic Buyouts - Auto retailers are actively pursuing acquisitions to expand their market reach and enhance competitive positioning, which helps diversify brand portfolios and improve operational efficiencies [5] Digitization - Dealers are investing in digital platforms to enhance customer experience, with tools like virtual showrooms and online pricing improving transparency and engagement [6] Capital Allocation - Many auto retailers are focusing on shareholder returns through share buybacks and dividend increases, supported by strong cash flow from disciplined acquisitions and cost-control initiatives [7] Industry Rank - The Zacks Auto Retail & Wholesale industry holds a Zacks Industry Rank of 89, placing it in the top 36% of nearly 245 Zacks industries, indicating strong near-term prospects [9][10] Stock Performance - The industry has underperformed compared to the S&P 500 and the Auto, Tires, and Truck sector over the past year, declining more than 1% while the S&P 500 and sector grew by 18% and 12%, respectively [12] Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.36X, significantly lower than the S&P 500's 18.68X and the sector's 26.92X [15] Company Highlights - **AutoNation**: A leading automotive retailer expanding through acquisitions, with recent additions expected to generate significant annual revenues. The company is also enhancing its digital capabilities and prioritizing shareholder returns with a $1 billion share repurchase plan [19][20][21] - **Asbury Automotive Group**: A diversified auto retailer benefiting from multiple income streams and strategic acquisitions, with a focus on digitization through its Clicklane platform. The company is also expanding into higher-margin segments and reporting improved productivity from new technology [24][25][26]

Core Insights - The automotive retail industry is experiencing a significant digital transformation as dealership groups strive to modernize their operations through the adoption of cloud-based platforms [1] Industry Summary - Dealership groups are actively engaged in modernizing their operations to keep pace with the evolving digital landscape [1]

Core Viewpoint - Asbury Automotive Group Inc. (NYSE:ABG) has shown a short-term stock increase of 10.05% over the past month, but a decline of 3.91% over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1] Group 1: Stock Performance - The current share price of Asbury Automotive Group is $242.43, reflecting a 0.50% drop in the current market session [1] - The stock has increased by 10.05% over the past month, indicating positive short-term performance [1] - However, the stock has decreased by 3.91% over the past year, raising concerns about long-term performance [1] Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS) [5] - Asbury Automotive Group has a P/E ratio of 8.55, which is significantly lower than the industry average P/E ratio of 28.51 in the Specialty Retail sector [6] - A lower P/E ratio may suggest that the stock is undervalued or that investors expect weaker performance compared to industry peers [6] Group 3: Investment Considerations - While the P/E ratio is a useful tool for evaluating market performance, it should be interpreted with caution as it may indicate undervaluation or weak growth prospects [9][10] - Investors are encouraged to consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis [10]