Asbury Automotive Group achieves record $4.8 billion revenue in Q3 2025, driven by acquisition growth and strong luxury vehicle demand, while managing macro headwinds.
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Summary
- Asbury Automotive Group reported a record $4.8 billion in revenue for Q3 2025, with a gross profit of $803 million and a gross profit margin of 16.7%.
- The acquisition of the Chambers Group positively impacted operating metrics, particularly in luxury brands, and integration is progressing well.
- Same-store gross profit for parts and service increased by 7%, with customer pay segment up by 8%, and SG&A as a percentage of gross profit decreased by 32 basis points.
- The company is focusing on deleveraging the balance sheet, optimizing portfolio makeup, and being opportunistic with share repurchases, having divested four stores and repurchased $50 million in shares.
- Same-store new vehicle revenue increased by 8% year-over-year, driven by consumer demand for EVs, though new average gross profit per vehicle decreased slightly.
- The company completed the rollout of Techyon to 23 stores, with further rollouts and associated cost savings anticipated in the future.
- Adjusted earnings per share was $7.17, with an adjusted EBITDA of $261 million; adjusted net income was $140 million.
- Future outlook includes potential challenges with vehicle affordability and a softening labor market, but optimism remains for luxury brand performance in Q4.
- Management highlighted the strategic importance of capital allocation towards share repurchases and debt reduction, while also maintaining readiness for further acquisitions.
Greetings and welcome to the Asbury Automotive Group Q3 2025 earnings conference call and webcast. At this time all participants are in listen only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing Star1 on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press Star zero. It's now my pleasure to turn the call over to Chris Reeves, Vice President, Finance and Investor Relations. Please go ahead Chris.
Thanks Operator and good morning. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's third quarter 2025 earnings call. The press release detailing Asbury's third quarter results was issued earlier this morning and is posted on our website at investors.asburyauto.com participating with me today are David Holt, our President and Chief Executive Officer, Paul Whatley, our Vice President of Operations, and Michael Welch, our Senior Vice President and Chief Financial Officer. At the conclusion of our remarks, we will open up the call for questions and will be available later for any follow up questions. Before we begin, we must remind you that the discussion during the call today is likely to contain forward looking statements. Forward looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts and current expectations, each of which are subject to significant uncertainties. For information regarding certain of the risks that may cause actual results to differ materially from these statements, please see our filings with the SEC from time to time, including our Form 10-K for the year ended December 31, 2024 and any subsequently filed quarterly reports on Form 10-Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward looking statements. In addition, certain non GAAP financial measures as defined under SEC rules may be discussed on the call as required by applicable SEC rules. We provide reconciliations of any such non GAAP financial measures to the most directly comparable GAAP measures on our website. Comparisons will be made on a year over year basis unless we indicate otherwise. We have also posted an updated investor presentation on our website Investors, highlighting our third quarter results. It is now my pleasure to hand the call over to our CEO David Holt.