Q4 2025 Asbury Automotive Group Inc Earnings Call Transcript
Key Points
- Asbury Automotive Group Inc (ABG) achieved a fourth-quarter record of $4.7 billion in revenue and $793 million in gross profit.
- The company successfully reduced its leverage to 3.2 times, better than the forecasted 3.5 times.
- Used vehicle gross profit rose 6% year-over-year, with retail PVRs up 18%.
- The rollout of Tekion to 46 stores has shown positive results in efficiency and productivity.
- ABG divested four stores in the quarter, generating $150 million in annualized revenue, and plans to divest nine more, further reducing leverage.
- New vehicle sales volume decreased due to a tough comparable from the previous year's post-election surge.
- Same store adjusted SG&A as a percentage of gross profit increased by 162 basis points, reflecting lower new vehicle profitability.
- Consumer spending in parts and service showed a pullback, impacting revenue in this segment.
- The transition to Tekion involves dual expenses for running two DMSs simultaneously, impacting SG&A in the first half of the year.
- Weather conditions negatively impacted sales in January, particularly in the Northeast and Southeast regions.
Greetings, and welcome to the Asbury Automotive Group fourth quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to introduce Chris Reeves, Vice President, Finance and Treasurer.
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 fourth quarter 2025 earnings call. The press release detailing Asbury's fourth quarter results was issued earlier this morning and is posted on our website at investors.asburyauto.com.
Participating with me today are David Hult, our President and Chief Executive Officer; Dan Clara, our Chief Operations Officer; 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
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