Asbury Automotive

Asbury Automotive Group is one of the largest car dealer groups in the United States. At June 30, 2026, it operated 158 new vehicle dealerships with 202 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 risk of its change to new dealer software. The company is moving all stores from the CDK dealer management system to Tekion. About 70% of stores used Tekion on July 28, 2026, and the rest are planned for fall 2026. The change adds costs and lowers store productivity while staff learn the new system.

In Q2 2026, adjusted EPS fell 15% from a year earlier to $6.82, and SG&A rose to 67.2% of gross profit from 63.2% a year earlier. Transaction adjusted net leverage also rose to 3.4 times at June 30, 2026, from 3.2 times at March 31. For the gap to close, three things must be true. The Tekion rollout must finish in fall 2026 without a new large disruption.

SG&A as a share of gross profit must move back toward the 63% level of 2025 during 2027, as the converted stores improve. Used vehicle, parts and service, and finance and insurance gross profit must keep growing, so that leverage falls from 3.4 times. The first evidence comes with the Q3 2026 report on October 27, 2026. The Q4 2026 report in early 2027 is the first full quarter after the rollout.

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, 2026Pending

   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.
2. Feb 15, 2027 · est.Pending

   Q4 2026 earnings: first quarter after the rolloutAdjusted EPS growth from a year earlier and transaction adjusted net leverage below 3.4 times pass; a further fall in adjusted EPS or higher leverage fails.

Every passed and failed checkpoint across all picks

• 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.
• August 31, 2026Asbury named Wendy Reynolds-Dobbs as Senior Vice President and Chief Human Resources Officer, effective September 14, 2026. The former head of human resources, Jed Milstein, left the company on August 19, 2026, and will consult until the end of 2026.

• The change of all stores to the Tekion dealer management system adds costs and lowers productivity during the change. SG&A rose to 67.2% of gross profit in Q2 2026 from 63.2% a year earlier. If the rollout has new problems or 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 $3.48 billion at June 30, 2026, and floor plan notes for vehicle inventory were another $1.84 billion. Transaction adjusted net leverage rose to 3.4 times from 3.2 times at March 31, 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 June 30, 2026, total debt outstanding was $3.48 billion, with $2.25 billion of senior notes due from 2028 to 2032, $1.15 billion of real estate and mortgage loans, $70 million on the revolver and an $8 million finance lease. Read more