Asbury Automotive

Asbury Automotive Group is one of the largest car dealer groups in the United States. At September 30, 2026, it operated 155 new vehicle dealerships with 197 franchises for 34 vehicle brands, and 37 collision repair centers. It sells new and used vehicles, and it repairs and services vehicles and sells parts. It also arranges vehicle loans through third-party lenders and sells add-on products such as service contracts.

Its own company, Total Care Auto, Powered by Asbury, provides service contracts and other vehicle protection products. Most gross profit comes from parts and service and from finance and insurance, because new and used vehicles earn low margins. Asbury also buys and sells dealerships to change its store portfolio.

The market prices Asbury for lower dealer profits and for the costs of its change to new dealer software. The company moved all stores from the CDK dealer management system to Tekion, and it finished the change in mid-October 2026. The change added costs and lowered store productivity while staff learned the new system. In Q3 2026, adjusted EPS fell 14% from a year earlier to $6.16, and SG&A rose to 68.5% of gross profit from 65.7% a year earlier.

Transaction adjusted net leverage also rose to 3.5 times at September 30, 2026, from 3.4 times at June 30. For the gap to close, three things must be true. The converted stores must show the efficiency gains that management expects, without new disruption. SG&A as a share of gross profit must move back toward the 64% level of the first nine months of 2025 during 2027.

Used vehicle, parts and service, and finance and insurance gross profit must grow again, so that leverage falls from 3.5 times. The Q4 2026 report, expected in early 2027, is the first quarter with all stores on Tekion, and it is the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is weaker vehicle demand.

The FTC dismissed its case on add-on products on October 5, 2026, so that risk is now smaller.

1. Oct 27, 2026Failed

   Q3 2026 earnings: Tekion rollout and costsSG&A as a share of gross profit lower than the 67.2% of Q2 2026 and the Tekion rollout on plan for fall 2026 pass; a higher cost share or a delay in the rollout fails.Outcome: Asbury finished the Tekion rollout in mid-October 2026, but SG&A rose to 68.5% of gross profit from 67.2% in Q2 2026.
2. Jan 27, 2027 · est.Pending

   Q4 2026 earnings: first quarter after the rolloutAdjusted EPS growth from a year earlier and transaction adjusted net leverage below 3.5 times pass; a further fall in adjusted EPS or higher leverage fails.

Every passed and failed checkpoint across all picks

• October 27, 2026Asbury reported Q3 2026 results. Revenue fell 8% to $4.4 billion. Net income fell 29% to $105 million, or $5.84 per diluted share, and adjusted EPS fell to $6.16 from $7.17. SG&A was 68.5% of gross profit, or 67.4% on an adjusted basis. All active stores used Tekion by mid-October 2026, and Total Care Auto products were in all stores in October. Transaction adjusted net leverage was 3.5 times, and Asbury bought back about 1.35 million shares for $278 million in the first nine months of 2026.
• October 6, 2026Asbury said that it will report Q3 2026 results before the market opens on October 27, 2026, with a call at 10:00 a.m. ET.
• October 5, 2026The FTC dismissed its 2024 administrative case against Asbury and three of its Texas dealerships about add-on products. It gave limited resources and the slow case as the reasons, and no court decided the claims. The FTC said that it still wants price transparency from dealers. Asbury's own lawsuit against the FTC is still pending.

Last earnings

October 27, 2026 (8-K on sec.gov)

Next earnings

Expected about January 27, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed October 30, 2026 · abg-20260930
• 8-KEarnings releaseFiled October 27, 2026 · Press release and exhibits
• 8-KInvestor disclosureFiled August 31, 2026 · abg-20260831
• 8-KChange of directors or officersFiled August 25, 2026 · abg-20260819
• 10-QQuarterly report for the period ended Jun 30, 2026Filed July 31, 2026 · abg-20260630
• 8-KEarnings releaseFiled July 28, 2026 · Press release and exhibits
• 8-KChange to shareholder rights or bylaws and Shareholder vote resultsFiled May 6, 2026 · abg-20260504
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 1, 2026 · abg-20260331
• 8-KEarnings releaseFiled April 28, 2026 · Press release and exhibits
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 20, 2026 · abg-20251231

Every filing on SEC EDGAR (CIK 1144980)

• The change of all stores to the Tekion dealer management system added costs and lowered productivity. The rollout ended in mid-October 2026, but SG&A rose to 68.5% of gross profit in Q3 2026 from 65.7% a year earlier. If the converted stores do not improve, costs can stay high.
• Vehicle sales depend on consumer demand, interest rates and vehicle prices. Tariffs on imported vehicles and parts can raise costs for Asbury and for the vehicle makers. Lower demand reduces new and used vehicle gross profit.
• Debt is high for a dealer. Long-term debt was $3.37 billion at September 30, 2026, and floor plan notes for vehicle inventory were another $1.76 billion. Transaction adjusted net leverage rose to 3.5 times from 3.4 times at June 30, 2026, while Asbury also buys back shares.
• On October 5, 2026, the FTC dismissed its 2024 administrative case against Asbury and three of its dealerships about the sale of add-on products, with no decision on the claims. The FTC said that it still wants price transparency from dealers and can bring cases in federal court. Asbury's own lawsuit against the FTC, filed on October 4, 2024, is still pending.

Asbury funds its vehicle inventory with floor plan notes and funds the rest of the business with senior notes, real estate loans and a revolving credit facility. At September 30, 2026, long-term debt, including the current portion, was $3.37 billion, down from $3.57 billion at December 31, 2025. Read more

Asbury Automotive does not pay a dividend.

Source: company filings and market data, read on November 13, 2026.