Asbury Automotive's Q2 Revenue Falls Short of Estimates

Asbury Automotive Group reported Q2 revenue of $4.37B, missing estimates of $4.45B. Adjusted EPS was $7.43, exceeding estimates of $6.87. The company also closed its $1.45B acquisition of Herb Chambers Dealerships. However, its shares fell after a JPMorgan downgrade.

Asbury Automotive Group, Inc. (NYSE: ABG) reported its second-quarter (Q2) 2025 financial results, with revenue of $4.37 billion, missing estimates of $4.45 billion. The company's adjusted earnings per share (EPS) was $7.43, surpassing estimates of $6.87. Additionally, Asbury completed its $1.45 billion acquisition of The Herb Chambers Automotive Group [1].

The company's net income for Q2 2025 was $153 million, representing a 443% increase from $28 million in Q2 2024. Adjusted net income, excluding certain non-GAAP items, was $146 million, up 13% from $129 million in Q2 2024. The company's gross profit increased to $752 million, up 3% from $732 million in Q2 2024. Gross margin decreased slightly to 17.2% from 17.3% in Q2 2024 [1].

Asbury's new vehicle unit volume increased by 4%, while used vehicle retail unit volume decreased by 6%. New vehicle revenue and gross profit also increased, with used vehicle retail gross profit rising by 11% [1].

The company's operating margin was 5.9%, up from 5.4% in Q2 2024. Adjusted operating margin was 5.8%, up from 5.5% in Q2 2024. Selling, General and Administrative (SG&A) expenses as a percentage of gross profit decreased to 63.2% from 63.6% in Q2 2024 [1].

Asbury's shares fell after JPMorgan downgraded the company's stock to "Neutral" from "Overweight," citing concerns about the company's valuation and the potential impact of economic headwinds [2].

Asbury Automotive Group operates 146 new vehicle dealerships and 37 collision repair centers, with a focus on new and used vehicles, parts and service, and finance and insurance products. The company is recognized as one of America's Fastest Growing Companies 2024 by the Financial Times and is listed in World's Most Trustworthy Companies 2024 by Newsweek [1].

References:
[1] https://www.stocktitan.net/news/ABG/asbury-automotive-group-reports-second-quarter-89b12gvdz01y.html
[2] https://www.jpmorgan.com/research/analyst-reports/asbury-automotive-group-inc-nyse-abg