Core Insights - AutoNation, Inc. reported fourth-quarter 2025 adjusted earnings of $5.08 per share, a 2% increase year over year, surpassing the Zacks Consensus Estimate of $4.91. However, revenues of $6.93 billion fell short of the Zacks Consensus Estimate of $7.14 billion and declined from $7.21 billion in the fourth quarter of 2024 [2][11]. Revenue Breakdown - New vehicle revenues decreased by 8.8% year over year to $3.44 billion, missing the estimate of $3.64 billion due to lower sales volume. Retail units sold were 64,841, down 9.2% year over year, and also below the projection of 73,642 units [3][11]. - The average selling price (ASP) per new vehicle unit was $53,073, a 0.4% increase year over year, exceeding the estimate of $49,384. However, gross profit from this segment fell by 26.7% year over year to $155.5 million, missing the estimate of $171.1 million [4][11]. - Retail used-vehicle revenues reached $1.76 billion, surpassing the projection of $1.71 billion, despite a 2.9% year-over-year decline in used vehicle retail units sold to 62,926, which missed the estimate of 66,669 units. The ASP per used vehicle was $27,933, up 3% year over year, exceeding the estimate of $25,669. Gross profit from this segment fell by 9.2% year over year to $90.5 million, missing the estimate of $97.5 million [5][11]. - Wholesale used vehicle revenues dropped by 13.1% to $133.2 million, missing the estimate of $150.5 million. Gross profit increased to $7.3 million from $4.7 million, matching the estimate [6]. - Finance and insurance business revenues were $369.4 million, a 0.9% increase year over year, but below the projection of $370.4 million. Gross profit was also $369.4 million, matching the year-over-year increase but missing the estimate [6]. - Parts and service revenues rose by 6.1% to $1.22 billion, although it missed the estimate of $1.23 billion. Gross profit from this segment increased by 6% year over year to $591.8 million, beating the estimate of $577.2 million [7]. Segment Performance - Domestic segment revenues increased by 1.2% year over year to $1.89 billion, missing the projection of $1.91 billion. The segment's income rose by 19.3% to $79.9 million but fell short of the estimate of $85.2 million [8]. - Import segment revenues decreased by 2.7% year over year to $2.05 billion, missing the forecast of $2.19 billion. The segment's income declined by 11.4% to $106.8 million, lagging behind the estimate of $136.7 million [8]. - Premium Luxury segment sales fell by 8.9% to $2.64 billion, matching the projection. The segmental income declined by 20.3% year over year to $165.4 million, missing the estimate of $196.1 million [9]. Financial Position - As of December 31, 2025, AutoNation's liquidity was $1.8 billion, including $59 million in cash and nearly $1.7 billion available under its revolving credit facility. The company's inventory was valued at $3.4 billion, and non-vehicle debt stood at $3.98 billion. Capital expenditure for the quarter was $86.3 million [12]. - During the quarter, AutoNation repurchased 1.7 million shares for $350 million, with $968 million remaining under its share repurchase program [12].

Asbury Automotive Group (NYSE:ABG) Q4 2025 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsChris Reeves - VP Finance and TreasurerDan Clara - COODaniela Haigian - VP of Equity ResearchDavid Hult - President and CEOMichael Welch - SVP and CFORajat Gupta - Equity Derivatives StructuringConference Call ParticipantsGlenn Chin - Senior Equity Analyst of AutomotiveJeff Lick - Managing Director and Research AnalystJohn Babcock - Stock AnalystMatthew Raab - Equity Research AnalystOperatorGreetings a ...

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 ...

Core Insights - Group 1 Automotive (GPI) reported a fourth-quarter 2025 adjusted earnings per share (EPS) of $8.49, a decrease of 15.3% year over year from $10.02, and missed the Zacks Consensus Estimate of $9.36 [1] - The company registered net sales of $5.58 billion, slightly up from $5.50 billion in the same quarter last year, but below the Zacks Consensus Estimate of $5.66 billion [1] GPI's Q4 Highlights - New vehicle retail sales fell 3.2% year over year to $2.77 billion, missing projections of $2.87 billion, with total retail new vehicles sold at 55,035 units, down 5% year over year [2] - The average selling price per new vehicle increased by 3.3% year over year to $52,776, while gross profit from new vehicle retail was $181.3 million, down 11.6% year over year [2] Used-Vehicle Sales Performance - Used-vehicle retail sales rose 5.2% year over year to $1.74 billion, surpassing forecasts of $1.67 billion, with total retail used vehicles sold at 55,474 units, a slight increase of 0.2% year over year [3] - The average selling price per used vehicle was $31,407, up 5.1% year over year, but gross profit from this segment decreased by 9.4% to $71.8 million [3] Wholesale and Parts & Service Performance - Used-vehicle wholesale sales increased by 11.4% year over year to $143.6 million, although it missed expectations of $149.4 million, with a gross loss of $2.7 million compared to a loss of $1.7 million in the previous year [4] - Parts and Service revenues rose 2.9% year over year to $700.2 million, with gross profit increasing by 6.3% to $394.2 million [4] Segment Performance - U.S. business segment revenues increased by 0.4% year over year to $4.25 billion, exceeding forecasts of $4.11 billion, but gross profit fell by 0.7% to $691.2 million, missing predictions of $707.9 million [5] - The U.K. business segment saw revenues jump 1.4% year over year to $1.33 billion, missing estimates of $1.52 billion, with gross profit slightly declining by 0.1% to $183.2 million [6] Financial Position - Selling, general and administrative expenses rose by 2.1% year over year to $627.3 million, while cash and cash equivalents decreased to $32.5 million from $34.4 million a year earlier [7] - Total debt increased to $3.70 billion as of December 31, 2025, up from $2.91 billion a year prior [7] Share Repurchase Activity - During the quarter, GPI repurchased 755,792 shares at an average price of $403.60 per share, totaling $305 million, with $378.7 million remaining on its authorized stock buyback program as of December 31, 2025 [8]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenues of $5.6 billion in Q4 and over $3.6 billion in gross profit for the full year, including nearly $1.6 billion from parts and service [6][11] - Adjusted net income for Q4 was $105 million, with adjusted diluted EPS of $8.49 from continuing operations [11] - Gross profit margin in the U.S. saw a slight decline in new vehicle sales, while used vehicle revenues increased approximately 4% [12][14] Business Line Data and Key Metrics Changes - Parts and service gross profit reached record levels, contributing significantly to overall profitability [4][6] - F&I (Finance and Insurance) performance improved, with PRU (Per Retail Unit) increasing by 13% in the U.K. [9][15] - Used vehicle operations held volumes flat year-over-year, but GPUs (Gross Profit per Unit) declined approximately 8% on a same-store basis due to higher acquisition costs [12][14] Market Data and Key Metrics Changes - In the U.K., new vehicle same-store volumes declined by 8.2%, while used vehicle same-store revenues increased over 9% [14][15] - The U.K. market faced challenges from weak economic growth, inflation, and increased competition from new entrants, particularly Chinese OEMs [7][31] - Chinese OEMs' market share leveled off at around 12%, impacting competitive dynamics in the U.K. [31] Company Strategy and Development Direction - The company is focused on operational excellence and capital deployment towards high-growth opportunities, including acquisitions of brands like Lexus and Acura [6][7] - Restructuring initiatives in the U.K. aim to improve efficiency and profitability, with ongoing adjustments to the operational model [7][16] - The company emphasizes the importance of aftersales and F&I as stabilizers in the U.K. operations while leveraging U.S. best practices [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating near-term challenges while building a resilient platform for long-term growth [10][69] - The macroeconomic environment remains dynamic, with a focus on controlling costs and improving operational efficiency [9][10] - There is a belief in the potential for organic growth in both the U.S. and U.K. markets, particularly in aftersales and used vehicle segments [50][51] Other Important Information - The company disposed of 13 dealerships, generating approximately $775 million in annualized revenue, while also repurchasing over 10% of outstanding shares [7][18] - Liquidity as of December 31 was $883 million, with cash flow generation yielding $699 million of adjusted operating cash flow [17][18] Q&A Session Summary Question: What were the impairments tied to this quarter? - Impairments were primarily related to the U.S. business, particularly within the Audi brand and the Maryland/D.C. market [21][22] Question: Are there specific productivity actions in the U.S.? - The company is deploying AI and productivity tools across various operations, leading to improved technician productivity and lower costs [24][25] Question: What is the status of the U.K. restructuring plan? - The restructuring is in the early stages, with ongoing adjustments to meet acceptable profit levels [29][30] Question: How do Chinese OEMs impact the market? - Chinese OEMs have leveled off at around 12% market share, but the company feels well-positioned due to its focus on luxury brands [31][32] Question: What are the expectations for used GPUs and SG&A post-restructuring? - Used GPUs are expected to improve with better discipline in the U.K., while SG&A is targeted to be around 80% on a long-term basis [39][40] Question: What is the outlook for lease returns and their impact? - An increase in lease returns is expected to provide a controlled source of premium used cars, positively impacting the used car business [52][53] Question: What are the expectations for the used vehicle market in the U.S.? - The company is optimistic about the used car opportunity, focusing on disciplined acquisition and leveraging AI for smarter purchasing decisions [60][61]

Financial Data and Key Metrics Changes - In 2025, Group 1 Automotive achieved record revenues of $5.6 billion in Q4 and over $3.6 billion in gross profit for the full year, including nearly $1.6 billion from parts and service [6][11][12] - Adjusted net income for Q4 was $105 million, with adjusted diluted EPS of $8.49 from continuing operations [11] - Gross profit from customer pay and warranty increased approximately 5% and 11% respectively, with overall U.S. business demonstrating strong performance [13][14] Business Line Data and Key Metrics Changes - Parts and service gross profit reached record levels, contributing significantly to overall profitability [4][6] - New vehicle sales in the U.S. declined slightly, while used vehicle operations held volumes flat but increased revenues by approximately 4% [11][12] - F&I gross profits grew nearly 3% in Q4, reflecting improved product penetration across categories [12][15] Market Data and Key Metrics Changes - In the U.K., new vehicle same-store volumes declined 8.2%, while used vehicle same-store revenues increased over 9% [14][15] - The U.K. market faced challenges including weak economic growth and increased competition from new entrants, particularly Chinese OEMs, which held a market share of around 12% [7][31] - The macroeconomic environment in the U.K. remains difficult, with inflation and margin pressure impacting operations [7][14] Company Strategy and Development Direction - Group 1 is focused on operational excellence and capital deployment towards high-value acquisitions, including brands like Lexus and Acura [6][7] - The company is executing restructuring initiatives in the U.K. to improve efficiency and profitability, including reducing headcount and consolidating operations [7][16] - There is an emphasis on leveraging U.S. operational practices in the U.K. to enhance aftersales performance and customer service [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating near-term challenges while building a resilient platform for long-term growth [10][69] - The focus remains on controlling costs, managing inventory, and enhancing operational efficiency in response to evolving macroeconomic conditions [9][10] - There is a belief in the potential for organic growth in both the U.S. and U.K. markets, particularly in aftersales and F&I [50][51] Other Important Information - The company disposed of 13 dealerships generating approximately $775 million in annualized revenue while acquiring new dealerships expected to generate $640 million [6][7] - As of December 31, liquidity stood at $883 million, with a rent-adjusted leverage of 3.1 times [16][17] - The company repurchased over 10% of its outstanding shares in 2025, with ongoing buyback plans [17][18] Q&A Session Summary Question: What were the impairments tied to this quarter? - Impairments were primarily related to the U.S. business, particularly within the Audi brand and the Maryland/D.C. market [21][22] Question: Are there specific productivity actions in the U.S. that could impact SG&A? - AI tools are being deployed across various business areas to enhance productivity, with tangible results in technician retention and operational efficiency [24][25][26] Question: What is the status of the U.K. restructuring plan? - The restructuring is ongoing, with more work to be done, and costs will be adjusted throughout 2026 [29][30] Question: How do Chinese OEMs impact the market? - Chinese OEMs have leveled off at around 12% market share, and while they are not slowing down, Group 1 feels well-positioned due to its focus on luxury brands [31][32] Question: What are the expectations for used GPUs and SG&A in the future? - Used GPUs in the U.S. are currently higher than pre-COVID levels, with expectations for improvement in the U.K. as operational discipline is instilled [39][40] Question: How does the company view lease returns impacting the used car market? - An increase in lease returns is expected to provide a controlled source of premium used cars, which is beneficial for the business [52][53]

Financial Data and Key Metrics Changes - The company reported a peak equipment inventory of approximately $1.3 billion, with guidance suggesting a reduction of about $550 million by the end of January [24] - Equipment margins improved from 3% in the first half of fiscal 2026 to 7% in the third quarter, indicating a recovery trend [28][29] - The company aims to operate within a tighter inventory range of two and a half times turn, focusing on improving the mix of inventory [21] Business Line Data and Key Metrics Changes - Revenue split is approximately 75% from equipment sales and just under 25% from parts and service, with parts and service contributing about 50% of gross profit dollars [3][4] - The service side has a gross profitability margin in the low 60s%, while parts have a margin in the low 30s%, compared to single-digit margins for equipment [4] Market Data and Key Metrics Changes - The company is navigating a down cycle, with industry volumes expected to be about 50% of the long-term average from 2000 to 2025, potentially marking the lowest point in several decades [18][19] - The agricultural equipment market is under pressure, with large ag equipment expected to decline by 15%-20% in the upcoming year [18] Company Strategy and Development Direction - The company is focused on consolidating its dealership footprint to enhance service efficiency and customer care, particularly in rural areas [5][6] - Recent divestitures in Germany were part of a strategy to focus on areas with higher profitability potential and to strengthen the dual-brand dealership model [12][14] - The company is investing in digitization and automation to improve operational efficiency and is currently implementing a new ERP system [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current down cycle but expresses confidence in the company's positioning for future recovery, emphasizing strong relationships and a proactive approach to inventory management [30][38] - The leadership team is focused on adjusting strategies in response to market conditions, including pulling back on purchasing and refining inventory management practices [37][38] Other Important Information - The company is actively pursuing M&A opportunities within its core footprint, aiming to increase dealership density and improve service delivery [10][11] - Floor plan interest has been a significant constraint on EPS generation, with efforts underway to reduce this burden through improved inventory turnover [32][33] Q&A Session Summary Question: How does the company source M&A opportunities? - The company relies on relationships within the industry and proactively engages with neighboring dealers to express interest in potential acquisitions [8][9] Question: What is the company's strategy regarding inventory management? - The company has implemented a plan to reduce inventory levels and improve the mix, focusing on presales and regionalized stock inventory [21][22] Question: How does the company view the current cycle and its impact on operations? - Management believes the current cycle presents challenges but also opportunities for consolidation and efficiency improvements, positioning the company for future growth [30][38]

Core Viewpoint - Group 1 Automotive's recent earnings report showed mixed results, with adjusted earnings per share missing estimates but revenues increasing year over year, raising questions about future performance [3][4][5]. Financial Performance - Q3 2025 adjusted EPS was $10.45, missing the Zacks Consensus Estimate of $10.64 but up 5.6% year over year [3]. - Net sales reached $5.8 billion, exceeding the Zacks Consensus Estimate of $5.63 billion and up from $5.2 billion in the previous year [3]. - New vehicle retail sales increased 9.3% to $2.81 billion, surpassing projections, while total retail new vehicles sold rose 6.5% year over year to 57,269 units [4]. - Used-vehicle retail sales rose 11.8% to $1.85 billion, exceeding forecasts, but total retail used vehicles sold increased only 6.6% to 59,574 units [5]. Segment Performance - U.S. business segment revenues rose 6.5% year over year to $4.28 billion, with gross profit increasing 5.4% to $715 million [7]. - U.K. business segment revenues jumped 20.4% to $1.50 billion, although it missed estimates, while gross profit surged 17.3% to $204.7 million [8]. Financial Position - Selling, general and administrative expenses increased 10.7% year over year to $654.9 million [9]. - Cash and cash equivalents decreased to $30.8 million from $34.4 million, while total debt rose to $3.47 billion from $2.91 billion [9]. Shareholder Actions - During the quarter, Group 1 repurchased 185,788 shares at an average price of $443.18, totaling $82.5 million, with $226.3 million remaining in the stock buyback program [10]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates revision, with the consensus estimate shifting down by 7.8% [11][12]. - Group 1 Automotive holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].

Core Insights - Asbury Automotive (ABG) reported Q3 2025 adjusted earnings per share of $7.17, exceeding the Zacks Consensus Estimate of $6.80 and up from $6.35 in the previous year, driven by strong gross profits from new vehicle sales, finance and insurance, and parts and service [1][9] - Total revenues for the quarter reached $4.80 billion, marking a nearly 13% year-over-year increase and surpassing the Zacks Consensus Estimate of $4.69 billion [1][9] Segment Performance - New vehicle revenues increased by 17% year over year to $2.53 billion, exceeding the Zacks Consensus Estimate of $2.44 billion, supported by a higher number of units sold, totaling 48,070 (up 13% year over year) [2] - The average selling price (ASP) for new vehicles was $52,609, up 4% year over year, also beating the consensus mark of $52,259 [2] - Gross profit from new vehicle sales was $161 million, a 7% increase from the prior year, surpassing the Zacks Consensus Estimate of $157 million [2] Used Vehicle Performance - Used vehicle retail revenues rose 7% year over year to $1.23 billion but fell short of the Zacks Consensus Estimate of $1.24 billion due to lower unit sales, totaling 37,696 (up 1% year over year) [3] - The ASP for used vehicles was $32,543, up 6% year over year, exceeding the consensus estimate of $31,576 [3] - Gross profit from used vehicles was $61.5 million, a 10% year-over-year increase, but missed the Zacks Consensus Estimate of $63 million [3] Wholesale and Finance Performance - Revenues from the used vehicle wholesale business increased by 27% to $185.5 million, beating the consensus mark of $160 million, although gross profit of $3.8 million fell short of the estimate of $4.15 million [4] - Net revenues from the finance and insurance business reached $200.3 million, an 8% increase year over year, surpassing the Zacks Consensus Estimate of $187 million [5] - Gross profit from finance and insurance was $187.1 million, up 9% year over year, exceeding the consensus estimate of $178 million [5] Parts and Service Performance - Revenues from the parts and service business were $659.4 million, up from $593.1 million in the prior year but missed the Zacks Consensus Estimate of $661 million [6] - Gross profit from this segment was $389.1 million, surpassing the consensus mark of $388 million and reflecting a 9% year-over-year increase [6] Financial Metrics - Selling, general & administrative expenses as a percentage of gross profit rose to 65.7%, an increase of 70 basis points year over year [7] - As of September 30, 2025, the company had cash and cash equivalents of $32.2 million, down from $69.4 million as of December 31, 2024, with long-term debt increasing to $3.6 billion from $3.14 billion [7]

Core Insights - Group 1 Automotive (GPI) reported Q3 2025 adjusted earnings per share (EPS) of $10.45, missing the Zacks Consensus Estimate of $10.64 but increasing by 5.6% year over year [1][10] - The company achieved net sales of $5.8 billion, exceeding the Zacks Consensus Estimate of $5.63 billion and up from $5.2 billion in the same quarter last year [1][10] Q3 Highlights - New vehicle retail sales rose 9.3% year over year to $2.81 billion, surpassing projections of $2.78 billion, with total retail new vehicles sold at 57,269 units, a 6.5% increase year over year [2] - Used-vehicle retail sales increased by 11.8% to $1.85 billion, exceeding the forecast of $1.80 billion, with total retail used vehicles sold at 59,574 units, up 6.6% year over year [3] - Average selling prices for new and used vehicles increased by 5% year over year, reaching $50,816 and $31,112 respectively [2][3] Segment Performance - U.S. business segment revenues grew 6.5% year over year to $4.28 billion, exceeding the forecast of $4.10 billion, with gross profit rising 5.4% to $715 million [5] - The U.K. business segment saw revenues jump 20.4% year over year to $1.50 billion, although it missed the estimate of $1.51 billion, with gross profit increasing 17.3% to $204.7 million [6] Financial Position - Selling, general and administrative expenses rose 10.7% year over year to $654.9 million [7] - Cash and cash equivalents decreased to $30.8 million from $34.4 million as of December 31, 2024, while total debt increased to $3.47 billion from $2.91 billion [7] Share Repurchase - During the quarter, GPI repurchased 185,788 shares at an average price of $443.18 per share, totaling $82.5 million, with $226.3 million remaining on its authorized stock buyback program [8]