Asbury Automotive Group Inc.

07/31/2026 | Press release | Distributed by Public on 07/31/2026 14:46

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Information
Certain of the discussions and information included or incorporated by reference in this report may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical in nature and may include statements relating to our goals, plans and projections regarding industry and general economic trends, our expected financial position, results of operations or market position and our business strategy. Such statements can generally be identified by words such as "may," "target," "could," "would," "will," "should," "believe," "expect," "anticipate," "plan," "intend," "foresee," and other similar words or phrases. Forward-looking statements may also relate to our expectations and assumptions with respect to, among other things:
•the seasonally adjusted annual rate of new vehicle sales in the United States;
•general economic conditions and their expected impact on our revenue and expenses;
•our expected parts and service revenue due to, among other things, improvements in vehicle technology;
•our ability to limit our exposure to regional economic downturns due to our geographic diversity and brand mix;
•manufacturers' continued use of incentive programs to drive demand for their product offerings;
•our capital allocation strategy, including as it relates to acquisitions and divestitures, stock repurchases and capital expenditures;
•our revenue growth strategy;
•the growth of the brands that comprise our portfolio over the long-term;
•disruptions in the production and supply of vehicles and parts from our vehicle and parts manufacturers and other suppliers, which can disrupt our operations; and
•our estimated future capital expenditures, which can be impacted by increasing prices and labor shortages and acquisitions and divestitures.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual future results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to:
•the ability to acquire and successfully integrate acquired businesses into our existing operations and realize expected benefits and synergies from such acquisitions, and identify and remediate insufficient control activities of the acquired businesses, if any, given that substantially all of our acquired businesses are private companies;
•the effects of increased expenses or unanticipated liabilities incurred resulting from or due to activities related to our acquisitions or divestitures;
•changes in general economic and business conditions, including the current inflationary environment, the current interest rate environment, changes in U.S. trade policy, including the imposition of tariffs, changes in employment levels, consumer confidence levels, consumer demand and preferences, the availability and cost of credit, fuel prices and levels of discretionary personal income;
•our ability to generate sufficient cash flows, maintain our liquidity and obtain any necessary additional funds for working capital, capital expenditures, acquisitions, stock repurchases, debt maturity payments and other corporate purposes, if necessary or desirable;
•significant disruptions in the production and delivery of vehicles and parts, or our business operations, for any reason, including supply shortages, natural disasters, severe weather, civil unrest, both at home and abroad, product recalls, work stoppages or other occurrences that are outside of our control;
•our ability to successfully attract and retain skilled employees;
•our ability to successfully operate, including our ability to maintain, and obtain future necessary regulatory approvals, for Total Care Auto, Powered by Asbury ("TCA"), our finance and insurance ("F&I") product provider;
•adverse conditions affecting the vehicle manufacturers whose brands we sell, and their ability to design, manufacture, deliver and market their vehicles successfully;
•changes in the mix and total number of vehicles we are able to sell;
•our outstanding indebtedness and our continued ability to comply with applicable covenants in our various financing and lease agreements, or to obtain waivers of these covenants as necessary;
•our ability to refinance outstanding indebtedness on attractive and advantageous terms;
•high levels of competition in our industry, which may create pricing and margin pressures on our products and services;
•our relationships with manufacturers of the vehicles we sell and our ability to renew, and enter into new framework and dealer agreements with vehicle manufacturers whose brands we sell, on terms acceptable to us;
•the availability of manufacturer incentive programs and our ability to earn these incentives;
•failure of our management information systems and our ability to successfully transition between key information systems, including our ability to successfully incorporate new technologies and continue our transition to Tekion, a dealer management systems ("DMS") provider, from CDK, another DMS provider;
•failure of management information systems used or maintained by our third-party service providers;
•any data security breaches occurring, including with regard to personally identifiable information ("PII");
•changes in laws and regulations governing the operation of automobile franchises, including trade restrictions, consumer protections, accounting standards, taxation requirements and environmental laws;
•macroeconomic and geopolitical conditions, including global trade relations, changes to consumer and business confidence, international tensions, hostilities and instability, including the present dispute between the United States and Iran, a slowdown in U.S. or global economic growth, higher rates of unemployment, changes in interest rates, inflation, and market volatility;
•changes in, or the imposition of, new tariffs or trade restrictions on imported vehicles or parts;
•adverse results from litigation, regulatory investigations or other similar proceedings involving us, including costs, expenses, settlements and judgments related thereto;
•our ability to consummate planned or pending mergers, acquisitions and dispositions;
•any disruptions in the financial markets, which may impact our ability to access capital;
•our relationships with, and the financial stability of, our lenders and lessors;
•business interruptions at a dealership location or substantial property loss due to actual or threatened adverse weather conditions or natural disasters, such as hurricanes, earthquakes, tornadoes, floods, hailstorms, fires or other extraordinary events;
•our ability to execute our initiatives and other strategies; and
•our ability to leverage scale and cost structure to improve operating efficiencies across our dealership portfolio.
Many of these factors are beyond our ability to control or predict, and their ultimate impact could be material. Moreover, the factors set forth under "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" below and other cautionary statements made in this report should be read and considered as forward-looking statements subject to such uncertainties. We urge you to carefully consider those factors.
Forward-looking statements speak only as of the date of this report. We expressly disclaim any obligation to update any forward-looking statements contained herein.
OVERVIEW
We are one of the largest automotive retailers in the United States. As of June 30, 2026, through our Dealerships segment, we owned and operated 202 new vehicle franchises (158 dealership locations), representing 34 brands of automobiles, within 14 states. We also operated 37 collision centers, and Total Care Auto, Powered by Asbury ("TCA"), our F&I product provider. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which include repair and maintenance services, replacement parts and collision repair service; and finance and insurance products. The finance and insurance products are provided by both TCA and independent third parties. The F&I products offered by TCA are sold through affiliated dealerships. For the six months ended June 30, 2026, our new vehicle revenue brand mix consisted of 41% imports, 33% luxury and 26% domestic brands. The Company manages its operations in two reportable segments: Dealerships and TCA.
Our Dealerships segment revenues are derived primarily from: (i) the sale of new vehicles; (ii) the sale of used vehicles to individual retail customers ("used retail") and to other dealers at auction ("wholesale") (the terms "used retail" and "wholesale" are collectively referred to as "used"); (iii) repair and maintenance services, collision repair, the sale of automotive replacement parts, and the reconditioning of used vehicles (collectively referred to as "parts and service"); and (iv) the arrangement of third-party vehicle financing and the sale of a number of vehicle protection products. F&I products are offered by dealerships to customers in connection with the purchase of vehicles through either TCA or independent third parties. We evaluate the results of our new and used vehicle sales based on unit volumes and gross profit per vehicle sold, our parts and service operations based on aggregate gross profit, and our F&I business based on F&I gross profit per vehicle sold. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute.
Our continued organic growth is dependent upon the execution of our balanced automotive retailing and service business strategy, the continued strength of our brand mix and the production and allocation of desirable vehicles from the automobile manufacturers whose brands we sell. Our vehicle sales have historically fluctuated with product availability as well as local and national economic conditions, including consumer confidence, availability of consumer credit, fuel prices and employment levels.
In addition, our ability to sell certain new and used vehicles can be negatively impacted by a number of factors, some of which are outside of our control. Certain manufacturers continue to be hampered by the lack of availability of parts and key components from suppliers which has impacted new vehicle inventory levels and availability of certain parts. We cannot predict with any certainty how long the automotive retail industry will continue to be subject to these production slowdowns or when normalized production will resume at these manufacturers.
Macroeconomic and geopolitical considerations
The demand and availability for and pricing of our products and services may be adversely impacted by economic conditions and financial developments, including increasing interest rates, rising inflation, high energy prices, a potential recessionary environment and other factors. The automotive retail industry is influenced by general economic conditions, particularly consumer confidence and consumer spending, interest rates, fuel prices, exchange rates, technology and business model changes, supply conditions, consumer transportation preferences, credit availability, and the unemployment rate. Consumer spending can be materially and adversely impacted by periods of economic uncertainty or by consumer concern regarding manufacturer viability. In addition, local economic, competitive and other conditions affect the performance of our dealerships. Our results of operations depend substantially on general economic conditions and consumer spending in those regions where we maintain operations.
Tariffs and trade risks
A significant portion of our business involves the sale of vehicles, parts, or vehicles composed of, or maintenance and repair services including, parts that are manufactured outside the U.S. Changes or increases in tariffs, trade restrictions, fluctuations in foreign currency exchange rates, the negotiation of new trade agreements, non-tariff trade barriers, local content requirements, uncertainty surrounding global trade policies, and the imposition of new or retaliatory tariffs against certain countries or covering certain products, including vehicles and parts, may affect our competitive position and impair our ability to sell and service vehicles and parts, and may have a material adverse effect on our results of operations.
We are unable to predict the ultimate outcome or effectiveness of any current or future tariff policies. Should the federal government impose further tariffs under other statutory regimes or legal theories, and such tariffs increase and be sustained, our inventory acquisition and carrying costs, and the production costs for many of our manufacturer, distributor and supplier partners, may be increased, which costs may be passed on to us and consumers through higher prices for many new vehicles and certain parts we sell. These increased prices may adversely affect our new vehicle sales and related finance and insurance sales and may adversely impact demand for such vehicles and parts, and could materially and adversely affect the results of our operations.
CONSOLIDATED RESULTS OF OPERATIONS
The Company's operating results for the three and six months ended June 30, 2026 include the results of the Herb Chambers Businesses acquired in the third quarter of 2025. Accordingly, the three and six months ended June 30, 2026 includes increases in revenue and gross profit related to the Herb Chambers Businesses, which have been offset by declines in revenues and gross profits due to several dealership divestitures in the second through fourth quarters of 2025 and February 2026.
We assess the organic growth of our revenue and gross profit on a same store basis. We believe that our assessment on a same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance. As such, for the following discussion, same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first full month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.
Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025
For the Three Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions, except per share data)
REVENUE:
New vehicle $ 2,330.2 $ 2,303.9 $ 26.3 1 %
Used vehicle 1,236.0 1,285.8 (49.8) (4) %
Parts and service 634.6 601.5 33.1 6 %
Finance and insurance, net 183.8 182.0 1.9 1 %
TOTAL REVENUE 4,384.6 4,373.1 11.5 NM
GROSS PROFIT:
New vehicle 138.2 160.0 (21.8) (14) %
Used vehicle 69.3 68.9 0.4 1 %
Parts and service 374.2 354.8 19.4 5 %
Finance and insurance 171.4 168.1 3.3 2 %
TOTAL GROSS PROFIT 753.1 751.9 1.2 NM
OPERATING EXPENSES:
Selling, general and administrative
506.4 475.5 30.9 7 %
Depreciation and amortization 23.1 19.0 4.0 21 %
Asset impairments 4.2 - 4.2 NM
INCOME FROM OPERATIONS 219.5 257.4 (37.9) (15) %
OTHER EXPENSES (INCOME):
Floor plan interest expense 21.6 18.1 3.5 19 %
Other interest expense, net 46.5 41.4 5.1 12 %
Gain on dealership divestitures, net - (5.9) 5.9 NM
Total other expenses, net 68.1 53.6 14.5 27 %
INCOME BEFORE INCOME TAXES 151.3 203.8 (52.5) (26) %
Income tax expense 36.7 51.0 (14.3) (28) %
NET INCOME $ 114.6 $ 152.8 $ (38.2) (25) %
Net income per common share-Diluted $ 6.25 $ 7.76 $ (1.50) (19) %
______________________________
NM-Not Meaningful
For the Three Months Ended June 30,
2026 2025
REVENUE MIX PERCENTAGES:
New vehicle 53.1 % 52.7 %
Used vehicle retail 25.0 % 25.8 %
Used vehicle wholesale 3.2 % 3.6 %
Parts and service 14.5 % 13.8 %
Finance and insurance, net 4.2 % 4.2 %
Total revenue 100.0 % 100.0 %
GROSS PROFIT MIX PERCENTAGES:
New vehicle 18.4 % 21.3 %
Used vehicle retail 8.8 % 8.3 %
Used vehicle wholesale 0.4 % 0.9 %
Parts and service 49.7 % 47.2 %
Finance and insurance 22.8 % 22.4 %
Total gross profit 100.0 % 100.0 %
GROSS PROFIT MARGIN 17.2 % 17.2 %
SG&A EXPENSE AS A PERCENTAGE OF GROSS PROFIT 67.2 % 63.2 %
Total revenue for the three months ended June 30, 2026 increased by $11.5 million compared to the three months ended June 30, 2025, due to a $33.1 million (6%) increase in parts and service revenue, a $26.3 million (1%) increase in new vehicle revenue, and a $1.9 million (1%) increase in F&I, net revenue, offset by a $49.8 million (4%) decrease in used vehicle revenue. During the three months ended June 30, 2026, gross profit increased by $1.2 million driven by a $19.4 million (5%) increase in parts and service gross profit, a $3.3 million (2%) increase in F&I gross profit, and a $0.4 million (1%) increase in used vehicle gross profit, offset by a $21.8 million (14%) decrease in new vehicle gross profit.
Income from operations during the three months ended June 30, 2026 decreased by $37.9 million (15%) compared to the three months ended June 30, 2025, due to a $30.9 million (7%) increase in selling, general and administrative expenses, a $4.2 million increase in asset impairment expense, and a $4.0 million (21%) increase in depreciation and amortization expense, partially offset by a $1.2 million increase in gross profit.
Total other expenses, net increased by $14.5 million (27%) during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, as a result of a $5.9 million decrease in gain on dealership divestitures, net, a $5.1 million (12%) increase in other interest expense, net, and a $3.5 million (19%) increase in floor plan interest expense. Income before income taxes decreased $52.5 million (26%) to $151.3 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Overall, net income decreased by $38.2 million (25%) during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
New Vehicle-
For the Three Months Ended June 30, Increase (Decrease) %
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Revenue:
Luxury $ 751.5 $ 688.6 $ 62.9 9 %
Import 981.9 928.2 53.8 6 %
Domestic 596.7 687.1 (90.4) (13) %
Total new vehicle revenue $ 2,330.2 $ 2,303.9 $ 26.3 1 %
Gross profit:
Luxury $ 63.0 $ 67.2 $ (4.2) (6) %
Import 49.4 57.0 (7.6) (13) %
Domestic 25.8 35.8 (10.0) (28) %
Total new vehicle gross profit $ 138.2 $ 160.0 $ (21.8) (14) %
New vehicle units:
Luxury 9,876 9,318 558 6 %
Import 23,944 22,884 1,060 5 %
Domestic 10,425 12,235 (1,810) (15) %
Total new vehicle units 44,245 44,437 (192) NM
Same Store:
Revenue:
Luxury $ 551.4 $ 600.3 $ (48.9) (8) %
Import 897.6 889.1 8.6 1 %
Domestic 550.1 643.0 (92.8) (14) %
Total new vehicle revenue $ 1,999.2 $ 2,132.3 $ (133.1) (6) %
Gross profit:
Luxury $ 46.8 $ 59.1 $ (12.3) (21) %
Import 43.4 54.5 (11.2) (20) %
Domestic 22.4 33.7 (11.3) (33) %
Total new vehicle gross profit $ 112.7 $ 147.4 $ (34.7) (24) %
New vehicle units:
Luxury 7,395 8,205 (810) (10) %
Import 21,852 21,945 (93) NM
Domestic 9,661 11,447 (1,786) (16) %
Total new vehicle units 38,908 41,597 (2,689) (6) %
New Vehicle Metrics-
For the Three Months Ended June 30, Increase (Decrease) %
Change
2026 2025
As Reported:
Revenue per new vehicle sold $ 52,666 $ 51,846 $ 819 2 %
Gross profit per new vehicle sold $ 3,124 $ 3,601 $ (477) (13) %
New vehicle gross margin 5.9 % 6.9 % (1.0) %
Luxury:
Gross profit per new vehicle sold $ 6,380 $ 7,214 $ (834) (12) %
New vehicle gross margin 8.4 % 9.8 % (1.4) %
Import:
Gross profit per new vehicle sold $ 2,064 $ 2,490 $ (426) (17) %
New vehicle gross margin 5.0 % 6.1 % (1.1) %
Domestic:
Gross profit per new vehicle sold $ 2,474 $ 2,927 $ (453) (15) %
New vehicle gross margin 4.3 % 5.2 % (0.9) %
Same Store:
Revenue per new vehicle sold $ 51,382 $ 51,261 $ 121 NM
Gross profit per new vehicle sold $ 2,896 $ 3,543 $ (647) (18) %
New vehicle gross margin 5.6 % 6.9 % (1.3) %
Luxury:
Gross profit per new vehicle sold $ 6,331 $ 7,204 $ (874) (12) %
New vehicle gross margin 8.5 % 9.8 % (1.4) %
Import:
Gross profit per new vehicle sold $ 1,986 $ 2,486 $ (500) (20) %
New vehicle gross margin 4.8 % 6.1 % (1.3) %
Domestic:
Gross profit per new vehicle sold $ 2,324 $ 2,945 $ (621) (21) %
New vehicle gross margin 4.1 % 5.2 % (1.2) %
For the three months ended June 30, 2026, new vehicle revenue increased by $26.3 million (1%) due to an $819 (2%) increase in revenue per new vehicle sold, partially offset by a decrease in new vehicle units sold of 192 as compared to the three months ended June 30, 2025. Same store new vehicle revenue decreased by $133.1 million (6%), primarily driven by a decrease in new vehicle units sold of 2,689 (6%), partially offset by a $121 increase in revenue per new vehicle sold as compared to the three months ended June 30, 2025.
For the three months ended June 30, 2026, new vehicle gross profit and same store new vehicle gross profit decreased by $21.8 million (14%) and $34.7 million (24%), respectively. Same store new vehicle gross margin for the three months ended June 30, 2026 decreased 128 basis points to 5.6%. A 101 basis point decrease was seen in new vehicle gross profit margins, as reported. The decrease in our new vehicle gross profit margin was primarily attributable to the continued softening of the historically high new vehicle margins seen in recent years, combined with affordability constraints which have also served to compress margins.
The seasonally adjusted annual rate ("SAAR") for new vehicle sales in the U.S. during the three months ended June 30, 2026 was approximately 16.2 million which increased slightly as compared to approximately 16.1 million during the three months ended June 30, 2025. The start of the second quarter of 2025 reflected surging demand due to tariff uncertainty but tapered off in the latter half of the quarter. The second quarter of 2026 saw a sluggish start to new vehicle sales due to climbing gas prices; however, demand rebounded as consumers returned to the market likely boosted by lowering gas prices, manufacturer incentives and strength in the equity markets in the second quarter of 2026 despite the broader economic uncertainty. We also continue to be impacted by the significant variation in new vehicle days supply among brands and models.
Used Vehicle-
For the Three Months Ended June 30, Increase (Decrease) %
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Revenue:
Used vehicle retail revenue $ 1,094.0 $ 1,129.4 $ (35.4) (3) %
Used vehicle wholesale revenue 141.9 156.3 (14.4) (9) %
Used vehicle revenue $ 1,236.0 $ 1,285.8 $ (49.8) (4) %
Gross profit:
Used vehicle retail gross profit $ 66.2 $ 62.3 $ 3.9 6 %
Used vehicle wholesale gross profit 3.1 6.6 (3.6) (54) %
Used vehicle gross profit $ 69.3 $ 68.9 $ 0.4 1 %
Used vehicle retail units:
Used vehicle retail units 33,098 36,233 (3,135) (9) %
Same Store:
Revenue:
Used vehicle retail revenue $ 930.0 $ 1,034.4 $ (104.4) (10) %
Used vehicle wholesale revenue 122.5 148.7 (26.2) (18) %
Used vehicle revenue $ 1,052.5 $ 1,183.1 $ (130.5) (11) %
Gross profit:
Used vehicle retail gross profit $ 55.5 $ 58.2 $ (2.7) (5) %
Used vehicle wholesale gross profit 2.2 6.7 (4.5) (67) %
Used vehicle gross profit $ 57.7 $ 64.9 $ (7.2) (11) %
Used vehicle retail units:
Used vehicle retail units 28,821 33,363 (4,542) (14) %
Used Vehicle Metrics-
For the Three Months Ended June 30, Increase (Decrease) %
Change
2026 2025
As Reported:
Revenue per used vehicle retailed $ 33,054 $ 31,171 $ 1,884 6 %
Gross profit per used vehicle retailed $ 2,002 $ 1,720 $ 282 16 %
Used vehicle retail gross margin 6.1 % 5.5 % 0.5 %
Same Store:
Revenue per used vehicle retailed $ 32,268 $ 31,003 $ 1,264 4 %
Gross profit per used vehicle retailed $ 1,927 $ 1,745 $ 182 10 %
Used vehicle retail gross margin 6.0 % 5.6 % 0.3 %
For the three months ended June 30, 2026, used vehicle revenue decreased by $49.8 million (4%) compared to the same period of the prior year, due to a $35.4 million (3%) decrease in used vehicle retail revenue and a $14.4 million (9%) decrease in used vehicle wholesale revenue. Same store used vehicle revenue decreased by $130.5 million (11%), due to a $104.4 million (10%) decrease in used vehicle retail revenue and a $26.2 million (18%) decrease in used vehicle wholesale revenue. Total used vehicle retail unit sales decreased by 9% on an all store basis and by 14% on a same store basis during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. While revenue per used vehicle retailed increased on both an all store and same store basis by 6% and 4%, respectively, the decrease in unit volumes on both an all store and same store basis negatively impacted used vehicle revenue for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Used vehicle revenue per vehicle sold increased due to the continued tight inventory levels heightened by consumers moving to the used vehicle market due to higher new vehicle prices. Used vehicle unit volumes continued to be negatively impacted by the lack of inventory availability, especially in vehicles with lower mileage.
For the three months ended June 30, 2026, both the total company and same store used vehicle retail gross profit margin increased by 54 basis points and 34 basis points, respectively, as compared to the three months ended June 30, 2025. The used vehicle retail gross margin increased from 5.5% to 6.1% on an all store basis and increased from 5.6% to 6.0% on a same store basis. We attribute the increases in used vehicle retail gross profit margins to our continued strong execution around sourcing and disciplined focus on profitability over units sold. Additionally, the increase in used vehicle gross margins on a total company basis was driven by the addition of the Herb Chambers Dealerships in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Used vehicle retail gross profit increased $3.9 million (6%) for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 and decreased $2.7 million (5%) on a same store basis for the same period. On a total company and same store basis, our gross profit per used vehicle retailed increased by $282 (16%) and $182 (10%), respectively, when compared to the prior year period. This was primarily driven by increases in used vehicle market prices due to the tight used vehicle inventory market.
Parts and Service-
For the Three Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions)
As Reported:
Parts and service revenue $ 634.6 $ 601.5 $ 33.1 6 %
Parts and service gross profit:
Customer pay $ 204.0 $ 190.5 $ 13.5 7 %
Warranty 57.7 50.6 7.1 14 %
Collision 30.8 30.4 0.4 1 %
Wholesale parts 18.5 18.6 (0.1) (1) %
Parts and service gross profit, excluding reconditioning and preparation $ 311.0 $ 290.1 $ 20.9 7 %
Parts and service gross margin, excluding reconditioning and preparation 49.0% 48.2% 0.8 %
Reconditioning and preparation * $ 63.1 $ 64.7 $ (1.5) (2) %
Total parts and service gross profit $ 374.2 $ 354.8 $ 19.4 5 %
Total parts and service gross margin 59.0% 59.0% NM
Same Store:
Parts and service revenue $ 550.7 $ 545.4 $ 5.3 1 %
Parts and service gross profit:
Customer pay $ 173.5 $ 173.8 $ (0.3) NM
Warranty 47.4 46.6 0.8 2 %
Collision 28.3 28.4 (0.1) NM
Wholesale parts 17.1 16.6 0.4 3 %
Parts and service gross profit, excluding reconditioning and preparation $ 266.3 $ 265.5 $ 0.9 NM
Parts and service gross margin, excluding reconditioning and preparation 48.4% 48.7% (0.3) %
Reconditioning and preparation * $ 56.5 $ 59.9 $ (3.5) (6) %
Total parts and service gross profit $ 322.8 $ 325.4 $ (2.6) (1) %
Total parts and service gross margin 58.6% 59.7% (1.0) %
* Reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of Parts and Service Cost of Sales in the accompanying Condensed Consolidated Statements of Income upon the sale of the vehicle.
The $33.1 million (6%) increase in parts and service revenue was primarily due to a $26.2 million (8%) increase in customer pay revenue and a $9.5 million (10%) increase in warranty revenue, partially offset by a $1.5 million (2%) decrease in collision revenue and a $1.1 million (1%) decrease in wholesale parts revenue. Same store parts and service revenue increased by $5.3 million (1%) to $550.7 million during the three months ended June 30, 2026 from $545.4 million during the three months ended June 30, 2025. The increase in same store parts and service revenue was due to a $5.4 million (2%) increase in customer pay revenue and a $2.5 million (2%) increase in wholesale parts revenue, partially offset by a $2.5 million (4%) decrease in collision revenue. The average age of vehicles continues to grow in 2026 reaching a historically high 13.0 years. Consumers are retaining vehicles for longer periods of time due to various factors, including the higher cost of vehicles, higher interest rates, as well as the vehicle inventory constraints experienced in the automotive industry in recent years.
For the three months ended June 30, 2026, total parts and service gross profit increased by $19.4 million (5%) to $374.2 million and same store total parts and service gross profit decreased by $2.6 million (1%) to $322.8 million when compared to the same period of the prior year. The all store increase is primarily due to the Herb Chambers acquisition, offset by store divestitures, while the same store increase is primarily due to increased customer pay and wholesale parts business offset by a decrease in the collision business profitability, which is in line with the increasing trend of aged vehicles.
Finance and Insurance, net-
For the Three Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Finance and insurance, net revenue
$ 183.8 $ 182.0 $ 1.9 1 %
Finance and insurance, net gross profit
$ 171.4 $ 168.1 $ 3.3 2 %
Finance and insurance, net per vehicle sold $ 2,216 $ 2,084 $ 132 6 %
Same Store:
Finance and insurance, net revenue
$ 162.4 $ 171.4 $ (9.0) (5) %
Finance and insurance, net gross profit
$ 150.0 $ 157.6 $ (7.6) (5) %
Finance and insurance, net per vehicle sold $ 2,214 $ 2,102 $ 113 5 %
F&I revenue, net increased by $1.9 million (1%) during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025, as a result of a $132 (6%) increase in F&I per vehicle retailed, partially offset by a 4% decrease in total retail units sold.
On a same store basis, F&I revenue, net decreased by $9.0 million (5%) during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025, primarily due to a 10% decrease in total retail units sold, partially offset by a $113 (5%) increase in F&I per vehicle retailed. F&I revenue, net was negatively impacted by the deferral of commission revenue on the sale of TCA products, which we continue to roll out to all of our stores, as compared to the immediate revenue recognition on the sale of third party F&I products. In addition, customers continue to look for ways to manage lower monthly payments in a high interest rate environment.
The financial results of the TCA segment, after dealership eliminations, are as follows:
For the Three Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions)
Finance and insurance, revenue $ 18.8 $ 15.6 $ 3.2 21 %
Finance and insurance, cost of sales $ 12.4 $ 13.8 $ (1.4) (10) %
Finance and insurance, gross profit $ 6.4 $ 1.8 $ 4.6 NM
TCA offers a variety of F&I products, such as extended vehicle service contracts, prepaid maintenance contracts, GAP, appearance protection contracts and lease wear-and-tear contracts. TCA's products are sold through our automobile dealerships.
Revenue generated by TCA is earned over the period of the related product contract. The method for recognizing revenue is assigned based on contract type and expected claim patterns. Premium revenues are supplemented with investment gains or losses and income earned associated with the performance of TCA's investment portfolio. During the three months ended June 30, 2026, TCA generated $18.8 million of revenue, after dealership eliminations, consisting primarily of earned premiums and $5.4 million of investment income from the investment portfolio. F&I revenue increased by $3.2 million (21%) for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 due to the continued roll-out of TCA products across Asbury dealerships resulting in the deferral of F&I revenue over the TCA contract term as opposed to the immediate recognition of revenue associated with third-party F&I product sales.
Direct expenses incurred for the acquisition of F&I contracts on which revenue has not yet been recognized have been deferred and are amortized over the related contract period. During the three months ended June 30, 2026, TCA recorded $12.4 million of cost of sales consisting primarily of claims expense. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated in the TCA segment upon consolidation.
We expect to complete the rollout to all of our dealerships in 2026 by offering TCA products on our Herb Chambers platform; however, no assurance can be given that the rollout will be completed with the timeframe contemplated.
Selling, General, and Administrative Expense-
For the Three Months Ended June 30, Increase
(Decrease) 		% of Gross
Profit Increase (Decrease)
2026 % of Gross
Profit 		2025 % of Gross
Profit
(Dollars in millions)
As Reported:
Personnel costs $ 316.2 42.0 % $ 312.6 41.6 % $ 3.6 0.4 %
Rent and related expenses 41.1 5.5 % 28.7 3.8 % 12.4 1.6 %
Advertising 16.3 2.2 % 17.1 2.3 % (0.9) (0.1) %
Other 132.9 17.6 % 117.0 15.6 % 15.9 2.1 %
Selling, general, and administrative expense $ 506.4 67.2 % $ 475.5 63.2 % $ 30.9 4.0 %
Gross profit $ 753.1 $ 751.9
Same Store:
Personnel costs $ 271.4 42.2 % $ 288.2 41.5 % $ (16.8) 0.7 %
Rent and related expenses 32.5 5.1 % 25.9 3.7 % 6.6 1.3 %
Advertising 13.9 2.2 % 15.0 2.2 % (1.0) NM
Other 109.4 17.0 % 107.7 15.5 % 1.7 1.5 %
Selling, general, and administrative expense $ 427.2 66.4 % $ 436.8 62.8 % $ (9.5) 3.6 %
Gross profit $ 643.2 $ 695.2
SG&A expense as a percentage of gross profit increased 401 basis points from 63.2% for the three months ended June 30, 2025 to 67.2% for the three months ended June 30, 2026. The increase in SG&A expense as a percentage of gross profit on a total company basis during the three months ended June 30, 2026 is primarily due to the relatively flat gross profit for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 and an increase in SG&A expense driven by the Herb Chambers Businesses and offset by store divestitures in 2025 and the first quarter of 2026.
On a same store basis, SG&A expense as a percentage of gross profit increased 360 basis points from 62.8% for the three months ended June 30, 2025 to 66.4% for the three months ended June 30, 2026. The increase in SG&A expense as a percentage of gross profit on a same store basis for the three months ended June 30, 2026 is the result of a decrease in gross profit, partially offset by a decrease in SG&A expense for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. On a same store basis, personnel costs decreased by $16.8 million (0.7%) for the three months ended June 30, 2026 as compared to the same period in the prior year due to a reduction in commissions payable on lower gross profits earned during the relevant periods. This was partially offset by an increase in rent and related expense of $6.6 million (1.3%) on a same store basis primarily due to a $5.0 million insurance recovery received in 2025.
Asset Impairments-
During the three months ended June 30, 2026, we recognized asset impairment charges of $4.2 million related to a dealership that met the criteria to be reflected as assets held for sale in June 2026, and whose franchise rights carrying value exceeded the Company's estimate of the franchise rights fair value less costs to sell. For the three months ended June 30, 2025, we did not recognize any asset impairment charges.
Floor Plan Interest Expense-
Floor plan interest expense increased by $3.5 million (19%) to $21.6 million during the three months ended June 30, 2026 as compared to $18.1 million for the three months ended June 30, 2025, as a result of higher non-manufacturer floor plan balances in 2026 due to the Herb Chambers acquisition, partially offset by lower non-manufacturer floor plan balances due to store divestitures in 2025 and February 2026.
Other Interest Expense-
Other interest expense increased $5.1 million (12%) from $41.4 million during the three months ended June 30, 2025 to $46.5 million during the three months ended June 30, 2026. This increase was primarily due to a $1.8 million increase in our
mortgage facilities interest expense and $2.1 million of credit facility interest expense as a result of borrowings incurred in connection with the Herb Chambers acquisition.
Gain on Dealership Divestitures, Net-
There were no divestitures during the three months ended June 30, 2026. During the three months ended June 30, 2025, we sold seven franchises (five dealership locations) for an aggregate purchase price of approximately $188.8 million. The Company recorded a pre-tax gain totaling $5.9 million, which is presented in our accompanying condensed consolidated statements of income as a gain on dealership divestitures, net.
Income Tax Expense-
The $14.3 million (28%) decrease in income tax expense was primarily the result of a $52.5 million (26%) decrease in income before income taxes and a benefit for interest income relating to tax overpayments. Our effective tax rate for the three months ended June 30, 2026 was 24.3% compared to 25.0% in the prior year comparative period, which differed from the U.S. statutory rate primarily due to the favorable effects of amended state income tax returns and the aforementioned interest income benefit offset by the unfavorable effects of the shortfall component of equity compensation, which are discrete items, and the unfavorable effects of various permanent tax adjustments such as executive compensation. We estimate our effective tax rate for the year ended December 31, 2026 at approximately 25%. This estimated effective tax rate includes the effects of the tax benefits related to the purchase of transferable tax credits.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
For the Six Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions, except per share data)
REVENUE:
New vehicle $ 4,431.0 $ 4,442.0 $ (11.0) NM
Used vehicle 2,442.3 2,521.6 (79.3) (3) %
Parts and service 1,261.4 1,189.1 72.3 6 %
Finance and insurance, net 362.9 368.9 (6.1) (2) %
TOTAL REVENUE 8,497.6 8,521.6 (24.0) NM
GROSS PROFIT:
New vehicle 266.7 303.1 (36.4) (12) %
Used vehicle 135.6 133.5 2.2 2 %
Parts and service 739.3 697.5 41.9 6 %
Finance and insurance 338.3 342.1 (3.8) (1) %
TOTAL GROSS PROFIT 1,480.0 1,476.1 3.9 NM
OPERATING EXPENSES:
Selling, general, and administrative 1,016.8 931.8 84.9 9 %
Depreciation and amortization 45.6 38.2 7.4 19 %
Asset impairments 4.2 14.3 (10.1) (71) %
INCOME FROM OPERATIONS 413.4 491.7 (78.4) (16) %
OTHER EXPENSES (INCOME):
Floor plan interest expense 42.7 38.8 3.8 10 %
Other interest expense, net 94.6 83.7 10.8 13 %
Gain on dealership divestitures, net (125.8) (10.1) (115.7) NM
Total other expenses, net 11.5 112.5 (101.0) (90) %
INCOME BEFORE INCOME TAXES 401.9 379.2 22.7 6 %
Income tax expense 99.5 94.4 5.1 5 %
NET INCOME $ 302.4 $ 284.9 $ 17.6 6 %
Net income per share-Diluted $ 16.20 $ 14.46 $ 1.73 12 %
______________________________
NM-Not Meaningful
For the Six Months Ended June 30,
2026 2025
REVENUE MIX PERCENTAGES:
New vehicle 52.1 % 52.1 %
Used vehicle retail 25.3 % 25.9 %
Used vehicle wholesale 3.4 % 3.7 %
Parts and service 14.8 % 14.0 %
Finance and insurance, net 4.3 % 4.3 %
Total revenue 100.0 % 100.0 %
GROSS PROFIT MIX PERCENTAGES:
New vehicle 18.0 % 20.5 %
Used vehicle retail 8.6 % 8.0 %
Used vehicle wholesale 0.5 % 1.0 %
Parts and service 50.0 % 47.3 %
Finance and insurance, net 22.9 % 23.2 %
Total gross profit 100.0 % 100.0 %
GROSS PROFIT MARGIN 17.4 % 17.3 %
SG&A EXPENSE AS A PERCENTAGE OF GROSS PROFIT 68.7 % 63.1 %
Total revenue for the six months ended June 30, 2026 decreased by $24.0 million compared to the six months ended June 30, 2025, due to a $79.3 million (3%) decrease in used vehicle revenue, an $11.0 million decrease in new vehicle revenue, and a $6.1 million (2%) decrease in F&I, net revenue, offset by a $72.3 million (6%) increase in parts and service revenue. During the six months ended June 30, 2026, gross profit increased by $3.9 million, driven by a $41.9 million (6%) increase in parts and service gross profit and a $2.2 million (2%) increase in used vehicle gross profit, offset by a $36.4 million (12%) decrease in new vehicle gross profit and a $3.8 million (1%) decrease in F&I gross profit.
Income from operations during the six months ended June 30, 2026 decreased by $78.4 million (16%), compared to the six months ended June 30, 2025, primarily due to a $84.9 million (9%) increase in selling, general and administrative expenses and a $7.4 million (19%) increase in depreciation and amortization expense, partially offset by a $10.1 million (71%) decrease in asset impairment expense and a $3.9 million increase in gross profit.
Total other expenses, net decreased by $101.0 million (90%) during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily as a result of a $115.7 million increase in gain on dealership divestitures, net, offset by a $10.8 million (13%) increase in other interest expense, net and a $3.8 million (10%) increase in floor plan interest expense. Income before income taxes increased $22.7 million (6%) to $401.9 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Overall, net income increased by $17.6 million (6%) during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
New Vehicle-
For the Six Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Revenue:
Luxury $ 1,476.4 $ 1,326.8 $ 149.6 11 %
Import 1,821.7 1,796.1 25.6 1 %
Domestic 1,133.0 1,319.1 (186.1) (14) %
Total new vehicle revenue $ 4,431.0 $ 4,442.0 $ (11.0) NM
Gross profit:
Luxury $ 127.0 $ 126.9 $ 0.2 NM
Import 91.3 109.3 (18.0) (16) %
Domestic 48.3 66.9 (18.5) (28) %
Total new vehicle gross profit $ 266.7 $ 303.1 $ (36.4) (12) %
New vehicle units:
Luxury 19,325 18,012 1,313 7 %
Import 44,548 44,581 (33) NM
Domestic 19,654 23,340 (3,686) (16) %
Total new vehicle units 83,527 85,933 (2,406) (3) %
Same Store:
Revenue:
Luxury $ 1,072.9 $ 1,154.4 $ (81.5) (7) %
Import 1,663.0 1,713.5 (50.5) (3) %
Domestic 1,043.8 1,231.7 (187.9) (15) %
Total new vehicle revenue $ 3,779.8 $ 4,099.6 $ (319.8) (8) %
Gross profit:
Luxury $ 94.6 $ 111.7 $ (17.1) (15) %
Import 80.3 104.6 (24.2) (23) %
Domestic 42.6 62.9 (20.3) (32) %
Total new vehicle gross profit $ 217.5 $ 279.1 $ (61.6) (22) %
New vehicle units:
Luxury 14,385 15,803 (1,418) (9) %
Import 40,603 42,607 (2,004) (5) %
Domestic 18,172 21,783 (3,611) (17) %
Total new vehicle units 73,160 80,193 (7,033) (9) %
New Vehicle Metrics-
For the Six Months Ended June 30, Increase (Decrease) %
Change
2026 2025
As Reported:
Revenue per new vehicle sold $ 53,049 $ 51,691 $ 1,358 3 %
Gross profit per new vehicle sold $ 3,193 $ 3,527 $ (334) (9) %
New vehicle gross margin 6.0% 6.8% (0.8) %
Luxury:
Gross profit per new vehicle sold $ 6,574 $ 7,045 $ (471) (7) %
New vehicle gross margin 8.6% 9.6% (1.0) %
Import:
Gross profit per new vehicle sold $ 2,050 $ 2,452 $ (402) (16) %
New vehicle gross margin 5.0% 6.1% (1.1) %
Domestic:
Gross profit per new vehicle sold $ 2,460 $ 2,866 $ (406) (14) %
New vehicle gross margin 4.3% 5.1% (0.8) %
Same Store:
Revenue per new vehicle sold $ 51,664 $ 51,122 $ 543 1 %
Gross profit per new vehicle sold $ 2,973 $ 3,480 $ (508) (15) %
New vehicle gross margin 5.8% 6.8% (1.1) %
Luxury:
Gross profit per new vehicle sold $ 6,573 $ 7,066 $ (493) (7) %
New vehicle gross margin 8.8% 9.7% (0.9) %
Import:
Gross profit per new vehicle sold $ 1,979 $ 2,454 $ (475) (19) %
New vehicle gross margin 4.8% 6.1% (1.3) %
Domestic:
Gross profit per new vehicle sold $ 2,344 $ 2,887 $ (543) (19) %
New vehicle gross margin 4.1% 5.1% (1.0) %
For the six months ended June 30, 2026, new vehicle revenue decreased by $11.0 million due to a decrease in new vehicle units sold of 2,406 (3%), partially offset by a $1,358 (3%) increase in revenue per new vehicle sold as compared to the six months ended June 30, 2025. Same store new vehicle revenue decreased by $319.8 million (8%), driven by a decrease in new vehicles sold of 7,033 (9%), partially offset by a $543 (1%) increase in revenue per new vehicle sold as compared to the six months ended June 30, 2025.
For the six months ended June 30, 2026, new vehicle gross profit and same store new vehicle gross profit decreased by $36.4 million (12%) and $61.6 million (22%), respectively. Same store new vehicle gross margin for the six months ended June 30, 2026 decreased 105 basis points to 5.8%. An 80 basis point decrease was seen in new vehicle gross profit margins, as reported. The decrease in our new vehicle gross profit margin was primarily attributable to the continued easing of new vehicle inventory constraints which softened the historically high new vehicle margins seen in recent years, combined with affordability constraints which have also served to compress margins.
The seasonally adjusted annual rate ("SAAR") for new vehicle sales in the U.S. during the six months ended June 30, 2026 was approximately 15.9 million which decreased as compared to approximately 16.3 million during the six months ended June 30, 2025. The decrease in SAAR period over period was due to higher consumer demand for new vehicles driven by automobile tariff uncertainty in the first and second quarter of 2025 that did not recur in 2026. We also continue to be impacted by the significant variation in new vehicle days supply among brands and models.
Used Vehicle-
For the Six Months Ended June 30, Increase (Decrease) %
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Revenue:
Used vehicle retail revenue $ 2,153.6 $ 2,208.3 $ (54.7) (2) %
Used vehicle wholesale revenue 288.7 313.2 (24.5) (8) %
Used vehicle revenue $ 2,442.3 $ 2,521.6 $ (79.3) (3) %
Gross profit:
Used vehicle retail gross profit $ 127.6 $ 118.5 $ 9.1 8 %
Used vehicle wholesale gross profit 8.1 15.0 (6.9) (46) %
Used vehicle gross profit $ 135.6 $ 133.5 $ 2.2 2 %
Used vehicle retail units:
Used vehicle retail units 66,300 71,648 (5,348) (7) %
Same Store:
Revenue:
Used vehicle retail revenue $ 1,811.2 $ 2,020.1 $ (208.8) (10) %
Used vehicle wholesale revenue 243.7 298.2 (54.5) (18) %
Used vehicle revenue $ 2,055.0 $ 2,318.3 $ (263.3) (11) %
Gross profit:
Used vehicle retail gross profit $ 107.8 $ 111.0 $ (3.2) (3) %
Used vehicle wholesale gross profit 6.6 15.1 (8.5) (56) %
Used vehicle gross profit $ 114.4 $ 126.0 $ (11.6) (9) %
Used vehicle retail units:
Used vehicle retail units 57,404 65,784 (8,380) (13) %
Used Vehicle Metrics-
For the Six Months Ended June 30, Increase (Decrease) %
Change
2026 2025
As Reported:
Revenue per used vehicle retailed $ 32,482 $ 30,822 $ 1,661 5 %
Gross profit per used vehicle retailed $ 1,924 $ 1,654 $ 270 16 %
Used vehicle retail gross margin 5.9 % 5.4 % 0.6 %
Same Store:
Revenue per used vehicle retailed $ 31,553 $ 30,708 $ 845 3 %
Gross profit per used vehicle retailed $ 1,878 $ 1,687 $ 191 11 %
Used vehicle retail gross margin 6.0 % 5.5 % 0.5 %
For the six months ended June 30, 2026, used vehicle revenue decreased by $79.3 million (3%) compared to the same period of the prior year, due to a $54.7 million (2%) decrease in used vehicle retail revenue and a $24.5 million (8%) decrease in used vehicle wholesale revenue. Same store used vehicle revenue decreased by $263.3 million (11%) due to a $208.8 million (10%) decrease in used vehicle retail revenue and a $54.5 million (18%) decrease in used vehicle wholesale revenue. Total used vehicle retail unit sales decreased by 7% on an all store basis and by 13% on a same store basis during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. While revenue per used vehicle retailed increased on both an all store and same store basis by 5% and 3%, respectively, the decrease in unit volumes on both an all store and same store basis negatively impacted used vehicle revenue for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Used vehicle revenue per vehicle sold increased due to the continued tight inventory levels heightened by consumers
moving to the used vehicle market due to higher new vehicle prices. Used vehicle unit volumes were negatively impacted by lower new vehicle unit sales which reduced trade-ins, our primary source of used vehicle inventory, and the continued lack of inventory availability, especially in vehicles with lower mileage.
For the six months ended June 30, 2026, the total company and same store used vehicle retail gross profit margin increased by 56 basis points and 46 basis points, respectively, as compared to the six months ended June 30, 2025. The used vehicle retail gross margin increased from 5.4% to 5.9% on an all store basis and increased from 5.5% to 6.0% on a same store basis. We attribute the increases in used vehicle gross profit margins to strong execution around sourcing and disciplined focus on profitability over units sold. Additionally, the increase in used vehicle gross margins on a total company basis was driven by the addition of the Herb Chambers Dealerships in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Used vehicle retail gross profit increased $9.1 million (8%) for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 and decreased $3.2 million (3%) on a same store basis for the same period. On a total company and same store basis, our gross profit per used vehicle retailed increased $270 (16%) and $191 (11%), respectively, when compared to the prior year period. This was primarily driven by increases in used vehicle market prices due to the tight used vehicle inventory market.
Parts and Service-
For the Six Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions)
As Reported:
Parts and service revenue $ 1,261.4 $ 1,189.1 $ 72.3 6 %
Parts and service gross profit:
Customer pay $ 397.9 $ 369.0 $ 28.9 8 %
Warranty 120.4 102.7 17.7 17 %
Collision 60.9 62.5 (1.6) (2) %
Wholesale parts 37.7 37.4 0.3 1 %
Parts and service gross profit, excluding reconditioning and preparation $ 617.0 $ 571.7 $ 45.4 8 %
Parts and service gross margin, excluding reconditioning and preparation 48.9 % 48.1 % 0.8 %
Reconditioning and preparation * $ 122.3 $ 125.8 $ (3.5) (3) %
Total parts and service gross profit $ 739.3 $ 697.5 $ 41.9 6 %
Total parts and service gross margin 58.6 % 58.7 % NM
Same Store:
Parts and service revenue $ 1,084.3 $ 1,076.8 $ 7.5 1 %
Parts and service gross profit:
Customer pay $ 336.5 $ 335.5 $ 1.0 NM
Warranty 96.8 94.5 2.3 2 %
Collision 55.5 58.7 (3.2) (5) %
Wholesale parts 34.3 33.4 0.9 3 %
Parts and service gross profit, excluding reconditioning and preparation $ 523.1 $ 522.1 $ 1.0 NM
Parts and service gross margin, excluding reconditioning and preparation 48.2 % 48.5 % (0.2) %
Reconditioning and preparation * $ 109.0 $ 116.3 $ (7.4) (6) %
Total parts and service gross profit $ 632.1 $ 638.4 $ (6.3) (1) %
Total parts and service gross margin 58.3 % 59.3 % (1.0) %
* Reconditioning and preparation represents the gross profit earned by our parts and service departments for internal work performed and is included as a reduction of parts and service cost of sales in the accompanying condensed consolidated statements of income upon the sale of the vehicle.
The $72.3 million (6%) increase in parts and service revenue was primarily due to a $51.3 million (8%) increase in customer pay revenue, a $24.6 million (13%) increase in warranty revenue, and a $0.9 million increase in wholesale parts revenue, partially offset by a $4.5 million (3%) decrease in collision revenue. Same store parts and service revenue increased by $7.5 million (1%) to $1,084.3 million during the six months ended June 30, 2026 from $1,076.8 million during the six months ended June 30, 2025. The increase in same store parts and service revenue was due to a $9.1 million (2%) increase in customer pay revenue, a $5.8 million (3%) increase in wholesale parts revenue, and a $1.2 million (1%) increase in warranty revenue, partially offset by an $8.6 million (7%) decrease in collision revenue. The average age of vehicles in 2026 is historically high at 13.0 years. Consumers are retaining vehicles for longer periods of time due to various factors, including the higher cost of vehicles, higher interest rates, as well as the vehicle inventory constraints experienced in the automotive industry in recent years.
For the six months ended June 30, 2026, total parts and service gross profit increased by $41.9 million (6%) to $739.3 million, and same store total parts and service gross profit decreased by $6.3 million (1%) to $632.1 million when compared to the same period of the prior year. The all store increase is primarily due to the Herb Chambers acquisition, offset by store divestitures, while the same store decrease is primarily due to a decrease in internal work and the collision business profitability offset by increased customer pay and warranty volume, which is in line with the increasing trend of aged vehicles.
Finance and Insurance, net-
For the Six Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions, except for per vehicle data)
As Reported:
Finance and insurance, net revenue
$ 362.9 $ 368.9 $ (6.1) (2) %
Finance and insurance, net gross profit
$ 338.3 $ 342.1 $ (3.8) (1) %
Finance and insurance, net per vehicle sold $ 2,258 $ 2,171 $ 87 4 %
Same Store:
Finance and insurance, net revenue
$ 319.5 $ 347.8 $ (28.3) (8) %
Finance and insurance, net gross profit
$ 294.9 $ 320.9 $ (26.0) (8) %
Finance and insurance, net per vehicle sold $ 2,259 $ 2,198 $ 60 3 %
F&I revenue, net decreased by $6.1 million (2%) during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025, as a result of a 5% decrease in total retail units sold, partially offset by a $87 (4%) increase in F&I per vehicle retailed.
On a same store basis, F&I revenue, net decreased by $28.3 million (8%) during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025, primarily due to an 11% decrease in total retail units sold, partially offset by a $60 (3%) increase in F&I per vehicle retailed. F&I revenue, net was negatively impacted by the deferral of commission revenue on the sale of TCA products, which we continue to roll out to all of our stores, as compared to the immediate revenue recognition on the sale of third party F&I products. In addition, customers continue to look for ways to manage lower monthly payments in a high interest rate environment.
The financial results of the TCA segment, after dealership eliminations, are as follows:
For the Six Months Ended June 30, Increase
(Decrease) 		%
Change
2026 2025
(Dollars in millions)
Finance and insurance, revenue $ 44.0 $ 46.6 $ (2.6) (6) %
Finance and insurance, cost of sales $ 24.6 $ 26.9 $ (2.3) (9) %
Finance and insurance, gross profit $ 19.4 $ 19.7 $ (0.3) (1) %
TCA offers a variety of F&I products, such as extended vehicle service contracts, prepaid maintenance contracts, GAP, appearance protection contracts and lease wear-and-tear contracts. TCA's products are sold through our automobile dealerships.
Revenue generated by TCA is earned over the period of the related product contract. The method for recognizing revenue is assigned based on contract type and expected claim patterns. Premium revenues are supplemented with investment gains or losses and income earned associated with the performance of TCA's investment portfolio. During the six months ended June 30, 2026, TCA generated $44.0 million of revenue, after dealership eliminations, consisting primarily of earned premiums and $10.7 million of investment income from the investment portfolio. F&I revenue decreased by $2.6 million (6%) for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 due to the continued roll-out of TCA products across Asbury dealerships resulting in the deferral of F&I revenue over the TCA contract term as opposed to the immediate recognition of revenue associated with third-party F&I product sales.
Direct expenses incurred for the acquisition of F&I contracts on which revenue has not yet been recognized have been deferred and are amortized over the related contract period. During the six months ended June 30, 2026, TCA recorded $24.6 million of cost of sales consisting primarily of claims expense. Commissions expense paid by TCA to our affiliated dealerships and reflected as F&I revenue in our Dealerships segment is eliminated in the TCA segment upon consolidation.
We expect to complete the rollout to all of our dealerships in 2026 by offering TCA products on our Herb Chambers platform; however, no assurance can be given that the rollout will be completed with the timeframe contemplated.
Selling, General, and Administrative Expense-
For the Six Months Ended June 30, Increase
(Decrease) 		% of Gross
Profit Increase (Decrease)
2026 % of Gross
Profit 		2025 % of Gross
Profit
(Dollars in millions)
As Reported:
Personnel costs $ 632.1 42.7 % $ 619.2 41.9 % $ 12.8 0.8 %
Rent and related expenses 83.7 5.7 % 50.0 3.4 % 33.7 2.3 %
Advertising 34.3 2.3 % 32.3 2.2 % 1.9 0.1 %
Other 266.8 18.0 % 230.3 15.6 % 36.4 2.4 %
Selling, general, and administrative expense $ 1,016.8 68.7 % $ 931.8 63.1 % $ 84.9 5.6 %
Gross profit $ 1,480.0 $ 1,476.1
Same Store:
Personnel costs $ 537.4 42.7 % $ 570.3 41.8 % $ (32.9) 0.9 %
Rent and related expenses 65.8 5.2 % 44.4 3.3 % 21.4 2.0 %
Advertising 27.8 2.2 % 27.9 2.0 % (0.1) 0.2 %
Other 219.3 17.4 % 211.5 15.5 % 7.8 1.9 %
Selling, general, and administrative expense $ 850.3 67.5 % $ 854.1 62.6 % $ (3.8) 4.9 %
Gross profit $ 1,258.9 $ 1,364.5
SG&A expense as a percentage of gross profit increased 557 basis points from 63.1% for the six months ended June 30, 2025 to 68.7% for the six months ended June 30, 2026. The increase in SG&A as a percentage of gross profit on a total company basis during the six months ended June 30, 2026 is primarily due to the relatively flat gross profit for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 and an increase in SG&A expense driven by the Herb Chambers Businesses and offset by store divestitures in 2025 and the first quarter of 2026.
On a same store basis, SG&A expense as a percentage of gross profit increased 495 basis points from 62.6% for the six months ended June 30, 2025 to 67.5% for the six months ended June 30, 2026. The increase in SG&A expense as a percentage of gross profit on a same store basis for the six months ended June 30, 2026 is the result of a decrease in gross profit, partially offset by a decrease in SG&A expense for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. On a same store basis, personnel costs decreased by $32.9 million (0.9%) for the six months ended June 30, 2026 as compared to the same period in the prior year due to a reduction in commissions payable on lower gross profits earned during the relevant periods. In addition, rent and related expense increased on a same store basis by $21.4 million (2.0%) primarily due to a $15.0 million insurance recovery received in the first half of 2025 and $3.8 million in costs associated with weather events. In addition, other expense increased on a same store basis by $7.8 million (1.9%) primarily due to the Tekion implementation costs and duplicative DMS costs.
Asset Impairments-
During the six months ended June 30, 2026, we recognized asset impairment charges of $4.2 million related to a dealership that met the criteria to be reflected as assets held for sale in June 2026, and whose franchise rights carrying value exceeded the Company's estimate of the franchise rights fair value less costs to sell.
For the six months ended June 30, 2025, asset impairment charges of $14.3 million were recorded related to five dealerships that met the criteria to be reflected as assets held for sale in March 2025 whose franchise rights carrying values exceeded the Company's estimate of the franchise rights fair value less costs to sell.
Floor Plan Interest Expense-
Floor plan interest expense increased by $3.8 million (10%) to $42.7 million during the six months ended June 30, 2026 compared to $38.8 million during the six months ended June 30, 2025, as a result of higher non-manufacturer floor plan balances in 2026 due to the Herb Chambers acquisition, partially offset by lower non-manufacturer floor plan balances due to store divestitures in 2025 and February 2026.
Other Interest Expense-
Other interest expense increased $10.8 million (13%) from $83.7 million during the six months ended June 30, 2025 to $94.6 million during the six months ended June 30, 2026. This increase was primarily due to a $7.0 million increase in our mortgage facilities interest expense and $2.5 million of credit facility interest expense as a result of borrowings incurred in connection with the Herb Chambers acquisition.
Gain on Dealership Divestitures, net-
During the six months ended June 30, 2026, we sold 14 franchises (10 dealership locations) for an aggregate purchase price of approximately $361.5 million. The Company recorded a pre-tax gain totaling $125.8 million, which is presented in our accompanying condensed consolidated statements of income as a gain on dealership divestitures, net.
During the six months ended June 30, 2025, we sold nine franchises (seven dealership locations) for an aggregate purchase price of $222.3 million. The Company recorded a pre-tax gain totaling $10.1 million, which is presented in our accompanying condensed consolidated statements of income as a gain on dealership divestitures, net.
Income Tax Expense-
The $5.1 million (5%) increase in income tax expense was primarily the result of a $22.7 million (6%) increase in income before income taxes, partially offset by a benefit for interest income relating to tax overpayments. Our effective tax rate for the six months ended June 30, 2026 was 24.8% compared to 24.9% in the prior year comparative period, which differed from the U.S. statutory rate primarily due to the favorable effects of amended state income tax returns and the aforementioned interest income benefit offset by the unfavorable effects of the shortfall component of equity compensation, which are discrete items, and the unfavorable effects of various permanent tax adjustments such as executive compensation. We estimate our effective tax rate for the year ended December 31, 2026 at approximately 25%. This estimated effective tax rate includes the effects of the tax benefits related to the purchase of transferable tax credits.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2026, we had total available liquidity of $966.5 million, which consisted of cash and cash equivalents of $4.8 million (excluding $25.6 million held by TCA), short-term investments of $5.3 million, available funds in our floor plan offset accounts of $144.3 million, $782.0 million of availability under our revolving credit facility and $30.1 million of availability under our used vehicle floor plan facility. The borrowing capacities under our revolving credit facility and our used vehicle revolving floor plan facility are limited by borrowing base calculations and, from time to time, may be further limited by our required compliance with certain financial covenants. As of June 30, 2026, these financial covenants did not further limit our availability under our other credit facilities. Our 2021 syndicated real estate facility is scheduled to mature in December 2026. The Company expects to complete a refinance of the full outstanding principal amount prior to the expiration date of the existing agreement.
We continually evaluate our liquidity and capital resources based upon (i) our cash and cash equivalents on hand, (ii) the funds that we expect to generate through future operations, (iii) current and expected borrowing availability under our 2023 Senior Credit Facility, (iv) amounts in our new vehicle floor plan notes payable offset accounts, and (v) the potential impact of our capital allocation strategy and any contemplated or pending future transactions, including, but not limited to, financings, acquisitions, dispositions, equity and/or debt repurchases, dividends, or other capital expenditures. We believe we will have sufficient liquidity to meet our debt service and working capital requirements; commitments and contingencies; debt repayment, maturity and repurchase obligations; acquisitions; capital expenditures; and any operating requirements for at least the next twelve months and the foreseeable future.
Covenants
We are subject to a number of customary operating and other restrictive covenants in our various debt and lease agreements. We were in compliance with all of our covenants as of June 30, 2026.
Share Repurchases and Dividend Restrictions
Our ability to repurchase shares or pay dividends on our common stock is subject to our compliance with the covenants and restrictions in our various debt and lease agreements.
On February 25, 2026, the Company announced that its Board of Directors approved an increase of $424.0 million in the Company's share repurchase authorization to $500.0 million (the "New Share Repurchase Authorization"). As of June 30, 2026, the Company had $322.4 million remaining on its share repurchase authorization. The extent to which the Company
repurchases its shares, the number of shares and the timing of any repurchases, will depend on general market conditions, legal requirements and other corporate considerations. The repurchase program may be modified, suspended or terminated at any time without prior notice.
During the three and six months ended June 30, 2026, the Company repurchased and retired 668,116 and 1,346,359 shares of our common stock under our share repurchase program, respectively. The cash paid for these share repurchases was $130.6 million and $277.6 million for the three and six months ended June 30, 2026, respectively. There were no share repurchases during the three and six months ended June 30, 2025.
During the three and six months ended June 30, 2026, the Company repurchased 817 and 38,237 shares of our common stock for $0.1 million and $9.9 million, respectively, from employees in connection with a net share settlement feature of employee equity-based awards.
During the three and six months ended June 30, 2025, the Company repurchased 646 and 43,426 shares of our common stock for $0.2 million and $12.7 million, respectively, from employees in connection with a net share settlement feature of employee equity-based awards.
Cash Flows
Classification of Cash Flows Associated with Floor Plan Notes Payable
Borrowings and repayments of floor plan notes payable through our 2023 Senior Credit Facility ("Non-Trade"), and all floor plan notes payable relating to used vehicles (together referred to as "Floor Plan Notes Payable-Non-Trade"), are classified as financing activities on the accompanying condensed consolidated statements of cash flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as "Floor Plan Notes Payable-Trade") is classified as an operating activity on the accompanying condensed consolidated statements of cash flows. Borrowings of non-trade floor plan notes payable associated with inventory acquired in connection with all acquisitions and repayments made in connection with all divestitures are classified as a financing activity in the accompanying condensed consolidated statements of cash flows. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to our 2023 Senior Credit Facility that includes lenders affiliated with the manufacturers and lenders not affiliated with the manufacturers from which we purchased the related inventory. The majority of our floor plan notes are payable to our 2023 Senior Credit Facility, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles and certain loaner vehicle programs.
Floor plan borrowings are required by all vehicle manufacturers for the purchase of new vehicles, and all floor plan lenders require amounts borrowed for the purchase of a vehicle to be repaid within a short time period after the related vehicle is sold. As a result, we believe that it is important to understand the relationship between the cash flows of all of our floor plan notes payable and new vehicle inventory in order to understand our working capital and operating cash flow and to be able to compare our operating cash flow to that of our competitors (i.e., if our competitors have a different mix of trade and non-trade floor plan financing as compared to us). In addition, we include all floor plan borrowings and repayments in our internal operating cash flow forecasts. As a result, we use the non-GAAP measure "Adjusted cash flow provided by operating activities" (defined below) to compare our results to forecasts. We believe that splitting the cash flows of floor plan notes payable between operating activities and financing activities, while all new vehicle inventory activity is included in operating activities, results in significantly different operating cash flow than if all the cash flows of floor plan notes payable were classified together in operating activities.
Adjusted cash flow provided by operating activities includes borrowings and repayments of floor plan notes payable non-trade and used floor plan notes payable borrowing base changes. Adjusted cash flow provided by operating activities may not be comparable to similarly titled measures of other companies and should not be considered in isolation, or as a substitute for analysis of our operating results in accordance with GAAP. In order to compensate for these potential limitations, we also review the related GAAP measures. We believe that the adjustments related to cash flows associated with our used vehicle borrowing base, floor plan offset accounts and the impact of acquisitions and divestitures eliminates cash flow volatility and provides an adjusted operating cash flow metric that best reflects our results of operations and our management of inventory and related financing activities.
We have provided below a reconciliation of cash flow provided by operating activities, as if all changes in floor plan notes payable, except for (i) borrowings associated with acquisitions and repayments associated with divestitures, (ii) borrowings and repayments associated with the purchase of used vehicle inventory, and (iii) changes in the floor plan offset accounts were classified as operating activities for both floor plan notes payable - non-trade and floor plan notes payable - trade.
For the Six Months Ended June 30,
2026 2025
(In millions)
Reconciliation of cash provided by operating activities to cash provided by operating activities, as adjusted
Cash provided by operating activities, as reported $ 352.6 $ 316.4
Change in Floor Plan Notes Payable-Non-Trade, net (62.4) (206.7)
Change in Floor Plan Notes Payable-Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisitions and divestitures 30.1 220.8
Change in Floor Plan Notes Payable-Trade associated with floor plan offset, adjusted for acquisitions and divestitures (15.1) 3.5
Adjusted cash flow provided by operating activities $ 305.2 $ 334.0
Operating Activities-
Net cash provided by operating activities totaled $352.6 million and $316.4 million, for the six months ended June 30, 2026 and 2025, respectively. Adjusted cash flow provided by operating activities totaled $305.2 million and $334.0 million for the six months ended June 30, 2026 and 2025, respectively. Adjusted cash flow provided by operating activities includes net income, adjustments to reconcile net income to net cash provided by operating activities, changes in working capital, changes in used vehicle borrowing base, changes in floor plan notes payable - non-trade and trade, excluding the impact of offsets, and excluding operating cash flows associated with acquisitions and divestitures related to loaner vehicles and new vehicle inventories financed through floor plan notes payable - trade.
The $28.8 million decrease in adjusted cash flow provided by operating activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, was primarily the result of the following:
•decrease of $89.9 million in net income and non-cash adjustments to net income; and
•decrease of $15.7 million related to inventory, net of floor plan notes payable, including both trade and non-trade, excluding offset and including used vehicle borrowing base changes adjusted for acquisitions and divestitures.
The decrease in our adjusted cash flow provided by operating activities was partially offset by:
•$36.4 million increase related to other current assets, net;
•$16.7 million increase related to accounts payable and accrued liabilities;
•$19.3 million increase related to sales volume and the timing of collection of accounts receivable and contracts-in-transit during 2026 as compared to 2025; and
•$5.0 million increase related to other long term assets and liabilities, net.
Investing Activities-
Net cash provided by investing activities totaled $186.5 million for the six months ended June 30, 2026 compared to net cash provided by investing activities of $129.1 million for the six months ended June 30, 2025.
Capital expenditures, excluding the purchase of real estate, were $117.4 million and $59.5 million for the six months ended June 30, 2026 and 2025, respectively.
During the six months ended June 30, 2026, we acquired real estate properties for $51.9 million and did not purchase previously leased real estate properties. We did not acquire real estate properties during the six months ended June 30, 2025.
During the six months ended June 30, 2026, we sold 14 franchises (10 dealership locations) for an aggregate purchase price of $361.5 million. The Company recorded a pre-tax gain totaling $125.8 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.
During the six months ended June 30, 2025, we sold nine franchises (seven dealership locations) for an aggregate purchase price of $222.3 million. The company recorded a pre-tax gain totaling $10.1 million, which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net.
We purchased $57.2 million and $97.9 million of debt securities during the six months ended June 30, 2026 and 2025, respectively.
We received proceeds of $45.8 million and $64.2 million from the sale of debt securities during the six months ended June 30, 2026 and 2025, respectively.
During the six months ended June 30, 2026, we received cash proceeds of $5.7 million from the sale of real estate. During the six months ended June 30, 2025, we did not sell any real estate.
We expect that capital expenditures during 2026 will total approximately $250.0 million to upgrade or replace our existing facilities, construct new facilities, expand our service capacity, and invest in technology and equipment. In addition, as part of our capital allocation strategy, we continually evaluate opportunities to purchase properties currently under lease and acquire properties in connection with future dealership relocations. No assurances can be provided that we will have or be able to access capital at times or on terms in amounts deemed necessary to execute this strategy.
Financing Activities-
Net cash used in financing activities totaled $549.2 million for the six months ended June 30, 2026 compared to net cash used in financing activities of $460.1 million for the six months ended June 30, 2025.
During the six months ended June 30, 2026 and 2025, we had non-trade floor plan borrowings, excluding floor plan borrowings associated with acquisitions, of $4.81 billion and $4.51 billion, respectively, and non-trade floor plan repayments, excluding floor plan repayments associated with divestitures, of $4.88 billion and $4.82 billion, respectively.
During the six months ended June 30, 2026 and 2025, we had non-trade floor plan repayments associated with dealership divestitures of $77.8 million and $41.8 million, respectively.
Repayments of borrowings totaled $66.6 million and $98.2 million for the six months ended June 30, 2026 and 2025, respectively.
There were $850.0 million borrowings and $900.0 million repayments under our revolving credit facility during the six months ended June 30, 2026. During the six months ended June 30, 2025, there were $602.7 million borrowings and $602.7 million repayments under our revolving credit facility.
During the six months ended June 30, 2026, we repurchased 1,346,359 shares of our common stock under our share repurchase program for a total of $277.6 million and repurchased 38,237 shares of our common stock for $9.9 million from employees in connection with a net share settlement feature of employee equity-based awards. During the six months ended June 30, 2025, we repurchased 43,426 shares of our common stock for $12.7 million from employees in connection with a net share settlement feature of employee equity-based awards.
Off Balance Sheet Arrangements
We had no off balance sheet arrangements during any of the periods presented other than those disclosed in Note 13 "Commitments and Contingencies" of the Company's condensed consolidated financial statements.
Guarantor Financial Information
As of June 30, 2026, the Company had outstanding $405.0 million of 4.500% Senior Notes due 2028 and $445.0 million of 4.750% Senior Notes due 2030. The Senior Notes have been fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by each existing and future restricted subsidiary of the Company (the "Guarantor Subsidiaries"), with the exception of Landcar Administration Company, Landcar Agency, Inc. and Landcar Casualty Company and their respective subsidiaries (collectively, the "TCA Non-Guarantor Subsidiaries"). The 2028 Notes and the 2030 Notes were required to be registered under the Securities Act of 1933 within 270 days of the closing date for the offering of each respective series. The Company completed the registration of the 2028 Notes and 2030 Notes in October 2020.
The following tables present summarized financial information for the Company and the Guarantor Subsidiaries on a combined basis after elimination of (i) intercompany transactions and balances among Asbury and the Guarantor Subsidiaries and (ii) assets, liabilities, and equity in earnings from and investments in any non-guarantor subsidiaries.
Summarized Balance Sheet Data of Asbury and Guarantor Subsidiaries
As of
June 30, 2026 December 31, 2025
(In millions)
Current assets $ 2,805.5 $ 3,150.3
Current assets - affiliates $ 0.4 $ 0.5
Non-current assets $ 7,768.2 $ 7,614.8
Current liabilities $ 2,862.0 $ 2,995.7
Current liabilities - affiliates $ 22.2 $ 21.9
Non-current liabilities $ 3,525.9 $ 3,623.0
Summarized Statement of Operations Data for Asbury and Guarantor Subsidiaries
For the Six Months Ended June 30,
2026
(In millions)
Net sales $ 8,334.2
Gross profit $ 1,445.0
Income from operations $ 393.6
Net income $ 292.3
Critical Accounting Policies and Estimates
For a description of our critical accounting policies and estimates, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Our critical accounting policies and estimates have not changed materially during the six months ended June 30, 2026.
Asbury Automotive Group Inc. published this content on July 31, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 31, 2026 at 20:46 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]