Q2 2025 Asbury Automotive Group Inc Earnings Call Transcript

Jul 29, 2025 / 02:00PM GMT

Release Date Price: €188 (-3.59%)

Transcript 10-Q8-K

Key Points

Positve

Asbury Automotive Group Inc (ABG) reported strong demand in the second quarter, with new vehicle gross profit units (GPUs) remaining resilient.
The company achieved a same-store gross profit increase of 7% in its parts and service business, demonstrating stable growth.
Asbury Automotive Group Inc (ABG) successfully completed the Tekion conversion for its Koons stores, enhancing operational efficiency.
The acquisition of Herb Chambers Automotive Group is expected to strengthen Asbury's presence in the New England market, with a focus on luxury brands.
The company reported an adjusted earnings per share of $7.43 and an adjusted EBITDA of $256 million for the second quarter, indicating strong financial performance.

Negative

Asbury Automotive Group Inc (ABG) experienced a decline in average revenue per unit (AR) as the quarter progressed, indicating potential pricing pressures.
The company anticipates challenges in the second half of the year due to uncertainties surrounding tariffs and their impact on consumer pricing.
Used vehicle unit volume was down 4% year-over-year, reflecting a constrained supply environment.
The transition to Tekion incurred additional costs, impacting the company's SG&A expenses.
The acquisition of Herb Chambers Automotive Group increased Asbury's leverage ratio, which the company plans to reduce over the next 12 to 18 months.

Operator

Greetings. Welcome to Asbury Automotive Group's second quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now a pleasure to introduce Chris Reeves, Vice President of Finance and Investor Relations. Thank you.

You may begin.

Chris Reeves

Asbury Automotive Group Inc - Vice President of Finance and Investor Relations

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 2025 Earnings Call. The press release detailing Asbury's second 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 Operating 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.

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