Q2 2026 Asbury Automotive Group Inc Earnings Call Transcript
Key Points
- Asbury Automotive Group Inc (ABG) has successfully implemented Tekion across 70% of its store base, leading to improved operational efficiencies.
- The company reported a sequential increase in used retail PVR by 5%, indicating a positive impact from its used vehicle strategy.
- ABG has repurchased 7% of its 2025 ending share count, reflecting confidence in its stock as a long-term investment.
- The company achieved a gross profit margin of 17.2% and an adjusted operating margin of 5.3% for the second quarter.
- ABG's strategic initiatives, including increasing new vehicle market share and leveraging technology, are focused on driving growth and returns for shareholders.
- New vehicle units were down 6% on a same-store basis, indicating challenges in the new vehicle market.
- The company is still experiencing frictional costs associated with the Tekion rollout, impacting short-term financial performance.
- Parts and service gross profit was slightly down year-over-year, with customer pay business remaining flat.
- The transition to Tekion has led to temporary inefficiencies, particularly in fixed operations, affecting short-term results.
- ABG's adjusted SG&A as a percentage of gross profit was 66%, indicating room for improvement in cost management.
Greetings, and welcome to the Asbury Automotive Group second-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Chris Reeves, Vice President of Finance and Investor Relations. Thank you, sir. You may begin.
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 second-quarter 2026 earnings call. The press release detailing Asbury's second quarter results was issued earlier this morning and is posted on our website at investor.asburyauto.com. Participating with me today are Dan Clara, our President and Chief Executive Officer; and Michael Welch, our Senior Vice President and Chief Financial Officer.
At the conclusion of our remarks, we will open the call up for questions and will be available later today for any follow-up questions. . Before we
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