ASBURY AUTOMOTIVE GROUP INC recently released its 10-K report, providing a comprehensive overview of its operations. The company operates as an automotive retailer in the United States, with 223 new vehicle franchises representing 36 brands of automobiles within 15 states, along with 39 collision centers and a F&I product provider called Total Care Auto, Powered by Asbury ("TCA"). The company offers a range of automotive products and services, including new and used vehicles, vehicle repair and maintenance services, replacement parts, collision repair, and finance and insurance products.
In the year ended December 31, 2025, ASBURY AUTOMOTIVE GROUP INC reported consolidated revenue of $18.00 billion, marking an increase from $17.19 billion in the prior year. The consolidated gross profit also increased to $3.07 billion from $2.95 billion in the prior year. The increase in revenue and gross profit was primarily attributed to the effects of the Herb Chambers acquisition and growth in parts and services gross profit. However, this increase was offset by lower gross profit per vehicle sold for new vehicles as margins continued to shift downward from historic highs in recent years.
The company's financial highlights for the year ended December 31, 2025, include the acquisition of the Herb Chambers, which comprised 33 dealerships and three collision centers, for a total purchase price of approximately $1.76 billion. ASBURY AUTOMOTIVE GROUP INC also divested 24 franchises (15 dealership locations), which contributed approximately $436.3 million of revenue during the year.
In terms of the revenue mix percentages, new vehicles accounted for 52.8%, used retail vehicles for 25.3%, used vehicle wholesale for 3.8%, parts and service for 13.9%, and finance and insurance, net for 4.3% of the total revenue. The gross profit mix percentages were as follows: new vehicles at 20.2%, used retail vehicles at 7.8%, used vehicle wholesale at 0.6%, parts and service at 47.9%, and finance and insurance, net at 23.4% of the total gross profit.
The company's total gross profit margin decreased slightly from 17.2% in 2024 to 17.1% in 2025. Additionally, selling, general and administrative expenses as a percentage of gross profit increased from 64.0% to 64.7%.
ASBURY AUTOMOTIVE GROUP INC also provided insights into the macroeconomic and geopolitical considerations that may impact its business, such as economic conditions, interest rates, trade risks, and tariffs. The company highlighted the potential impact of tariffs, trade restrictions, and fluctuations in foreign currency exchange rates on its competitive position and ability to sell and service vehicles and parts.
As a result of these announcements, the company's shares have moved -0.37% on the market, and are now trading at a price of $247.57. Check out the company's full 10-K submission here.
