ASBURY AUTOMOTIVE GROUP INC has recently released its 10-Q report. Asbury Automotive Group, Inc. operates as an automotive retailer in the United States through two segments: Dealerships and Total Care Auto, Powered by Asbury (TCA). Its business includes new and used vehicle sales, repair and maintenance, collision repair, parts, reconditioning, and finance and insurance products sold through its dealership network and at auctions. The company was founded in 1996 and is headquartered in Atlanta, Georgia.
In Item 2, Management’s Discussion and Analysis, Asbury says its results are shaped by vehicle availability, consumer demand, interest rates, inflation, tariffs, and supply-chain conditions. The company also points to forward-looking risks tied to acquisitions and divestitures, liquidity, debt covenants, dealer agreements, information systems, and the ability to retain employees and maintain manufacturer relationships. It says its operating performance depends heavily on the mix and volume of vehicles sold, parts and service demand, and the effectiveness of its capital allocation strategy, including acquisitions, stock repurchases, and capital expenditures.
For the six months ended June 30, 2026, Asbury operated 202 new vehicle franchises across 158 dealership locations in 14 states, along with 37 collision centers. Its brand mix for new vehicle revenue was 41% imports, 33% luxury, and 26% domestic brands.
For the three months ended June 30, 2026, total revenue was $4.385 billion, up $11.5 million from $4.373 billion a year earlier. New vehicle revenue rose 1% to $2.330 billion, parts and service revenue increased 6% to $634.6 million, and finance and insurance revenue edged up 1% to $183.8 million, while used vehicle revenue fell 4% to $1.236 billion.
Total gross profit was essentially flat at $753.1 million. New vehicle gross profit declined 14% to $138.2 million, but parts and service gross profit increased 5% to $374.2 million and finance and insurance gross profit rose 2% to $171.4 million. Used vehicle gross profit was $69.3 million, up slightly from $68.9 million.
Operating expenses climbed faster than gross profit. Selling, general and administrative expense increased 7% to $506.4 million, depreciation and amortization rose 21% to $23.1 million, and the company recorded $4.2 million of asset impairments. Income from operations fell 15% to $219.5 million.
Higher financing costs also weighed on results. Floor plan interest expense rose 19% to $21.6 million and other interest expense, net increased 12% to $46.5 million, pushing total other expenses, net to $68.1 million from $53.6 million a year earlier. Income before taxes fell 26% to $151.3 million, net income dropped 25% to $114.6 million, and diluted earnings per share declined to $6.25 from $7.76.
The company said the 2026 quarter included results from the Herb Chambers businesses acquired in the third quarter of 2025, partly offset by dealership divestitures completed in late 2025 and February 2026. Following these announcements, the company's shares moved -0.62%, and are now trading at a price of $231.70. For more information, read the company's full 10-Q submission here.
