Asbury Automotive Group reported first-quarter 2026 net income of $188 million, up 42% from $132 million a year earlier, even as adjusted net income fell 24% to $102 million from $134 million.
Revenue reached $4.1 billion, with gross profit of $727 million. Gross margin was 17.7%. Operating margin came in at 4.7%, while adjusted operating margin was 5.0%.
Used retail gross profit per unit rose 16% to $1,847. Used vehicle retail revenue totaled $1.1 billion, generating $61 million of gross profit. Finance and insurance revenue per vehicle retailed was $2,302.
Parts and service revenue increased to $627 million, with gross profit of $365 million. New vehicle revenue was $2.1 billion.
Selling, general and administrative expenses were 70.2% of gross profit, or 68.6% on an adjusted basis.
In same-store operations, revenue was $3.5 billion and gross profit was $616 million. Same-store gross margin was 17.7%. Same-store used vehicle retail revenue was $881 million, with $52 million of gross profit. Parts and service revenue in the same-store base was $534 million, with gross profit of $309 million. Same-store operating margin was 5.0%, and adjusted operating margin was 5.3%.
During the quarter, Asbury divested 10 dealerships and terminated seven franchises. The 13 stores represented an estimated $625 million in annualized revenue. Net proceeds from the 10 divested stores were about $210 million.
The company repurchased about 678,000 shares for $147 million in the quarter. As of March 31, it had $257 million in cash, short-term investments and floorplan offset accounts, plus $917 million of availability under its used vehicle floorplan line and revolver, for total liquidity of $1.2 billion. Transaction-adjusted net leverage was 3.2x.
Asbury said more than 50% of stores had been converted to Tekion as of April 28, 2026. Today the company's shares have moved 0.52% to a price of $203.06. If you want to know more, read the company's complete 8-K report here.
