Revenue growth has stalled at 0.3% YoY in Q2 2026, while gross margin slipped to 17.2% from 17.9% in Q1 2024, and operating income fell 14.7% YoY, indicating fading pricing power and negative operating leverage.
Asbury Automotive Group, Inc. (ABG) annual income statement — 25-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 17.97B | 18B | 17.19B | 14.8B | 15.43B | 9.84B | 7.13B | 7.21B | 6.87B | 6.46B | 6.53B | 6.59B | 5.87B | 5.33B | 4.64B | 4.14B | 3.9B | 3.41B | 4.4B | 5.71B | 5.69B | 5.36B | 4.83B | 4.23B | 4.21B | 4.32B |
| Revenue Growth % | 4.12% | 4.71% | 16.12% | -4.09% | 56.89% | 37.94% | -1.09% | 4.89% | 6.47% | -1.09% | -0.92% | 12.28% | 9.99% | 14.93% | 12.08% | 6.27% | 14.42% | -22.64% | -22.93% | 0.33% | 6.3% | 10.83% | 14.14% | 0.66% | -2.58% | - |
| Cost of Goods Sold | 14.9B | 14.93B | 14.24B | 12.05B | 12.33B | 7.94B | 5.91B | 6.04B | 5.77B | 5.4B | 5.47B | 5.53B | 4.9B | 4.46B | 3.88B | 3.44B | 3.25B | 2.82B | 3.68B | 4.82B | 4.82B | 4.55B | 4.1B | 3.58B | 3.54B | 3.65B |
| COGS % of Revenue | - | 82.93% | 82.84% | 81.38% | 79.91% | 80.66% | 82.85% | 83.79% | 83.95% | 83.65% | 83.78% | 83.9% | 83.52% | 83.58% | 83.55% | 83.09% | 83.31% | 82.9% | 83.63% | 84.43% | 84.71% | 84.94% | 84.92% | 84.57% | 84.08% | 84.43% |
| Gross Profit | 3.08B | 3.07B | 2.95B | 2.76B | 3.1B | 1.9B | 1.22B | 1.17B | 1.1B | 1.06B | 1.06B | 1.06B | 967.2M | 876M | 763.8M | 700.3M | 650.6M | 582.6M | 720.6M | 889.44M | 870.78M | 806.95M | 729.09M | 653.32M | 669.81M | 672.47M |
| Gross Margin % | 17.11% | 17.07% | 17.15% | 18.62% | 20.09% | 19.34% | 17.15% | 16.21% | 16.05% | 16.35% | 16.22% | 16.1% | 16.48% | 16.42% | 16.45% | 16.91% | 16.69% | 17.1% | 16.37% | 15.57% | 15.29% | 15.06% | 15.08% | 15.43% | 15.92% | 15.57% |
| Gross Profit Growth % | - | 4.17% | 7% | -11.12% | 63% | 55.48% | 4.66% | 5.97% | 4.46% | -0.26% | -0.2% | 9.68% | 10.41% | 14.69% | 9.07% | 7.64% | 11.67% | -19.15% | -18.98% | 2.14% | 7.91% | 10.68% | 11.6% | -2.46% | -0.4% | - |
| Operating Expenses | 2.17B | 2.07B | 2.11B | 1.8B | 1.83B | 1.11B | 852.6M | 843.9M | 792.1M | 768.2M | 760.9M | 759.2M | 699M | 649.9M | 577.9M | 569.1M | 523.7M | 486.9M | 1.13B | 708.08M | 682.43M | 647.14M | 594.53M | 524.54M | 537.17M | 549.03M |
| OpEx % of Revenue | - | 11.5% | 12.29% | 12.18% | 11.84% | 11.29% | 11.95% | 11.7% | 11.52% | 11.9% | 11.66% | 11.52% | 11.91% | 12.18% | 12.45% | 13.74% | 13.44% | 14.29% | 25.75% | 12.39% | 11.98% | 12.08% | 12.3% | 12.39% | 12.77% | 12.71% |
| Selling, General & Admin | 2.07B | 1.99B | 1.89B | 1.62B | 1.76B | 1.07B | 781.9M | 799.8M | 755.8M | 729.7M | 732.5M | 729.9M | 671.6M | 617.8M | 554.9M | 531.6M | 502.6M | 465.5M | 581.5M | 685.63M | 663.86M | 627.15M | 576.41M | 506.95M | 518.7M | 518.26M |
| SG&A % of Revenue | - | 11.04% | 10.99% | 10.93% | 11.43% | 10.92% | 10.96% | 11.09% | 10.99% | 11.3% | 11.22% | 11.08% | 11.45% | 11.58% | 11.95% | 12.84% | 12.9% | 13.67% | 13.21% | 12% | 11.66% | 11.71% | 11.93% | 11.97% | 12.33% | 12% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 82.4M | 224.5M | 184.9M | 64.6M | 36.5M | 70.7M | 44.1M | 36.3M | 38.5M | 28.4M | 29.3M | 27.4M | 32.1M | 23M | 37.5M | 21.1M | 21.4M | 552.3M | 22.45M | 18.58M | 19.99M | 18.13M | 17.59M | 18.47M | 30.77M |
| Operating Income | 908.9M | 1B | 835.6M | 953.5M | 1.27B | 791.8M | 370.8M | 325M | 310.9M | 287.7M | 297.8M | 301.6M | 268.2M | 226.1M | 185.9M | 131.2M | 126.9M | 95.7M | -413.2M | 181.36M | 188.35M | 159.81M | 134.55M | 128.78M | 132.63M | 123.44M |
| Operating Margin % | 5.06% | 5.57% | 4.86% | 6.44% | 8.25% | 8.05% | 5.2% | 4.51% | 4.52% | 4.46% | 4.56% | 4.58% | 4.57% | 4.24% | 4% | 3.17% | 3.26% | 2.81% | -9.38% | 3.17% | 3.31% | 2.98% | 2.78% | 3.04% | 3.15% | 2.86% |
| Operating Income Growth % | - | 19.88% | -12.37% | -25.07% | 60.72% | 113.54% | 14.09% | 4.54% | 8.06% | -3.39% | -1.26% | 12.45% | 18.62% | 21.62% | 41.69% | 3.39% | 32.6% | 123.16% | -327.83% | -3.71% | 17.85% | 18.77% | 4.49% | -2.91% | 7.45% | - |
| EBITDA | 998.8M | 1.08B | 910.6M | 1.02B | 1.34B | 833.7M | 409.3M | 361.2M | 344.6M | 319.8M | 328.5M | 331.1M | 294.6M | 250.4M | 208.5M | 153.7M | 155.9M | 117.9M | -382.4M | 209.84M | 214.68M | 184.48M | 156.98M | 155.65M | 158.56M | 154.21M |
| EBITDA Margin % | 5.56% | 6.02% | 5.3% | 6.9% | 8.69% | 8.47% | 5.74% | 5.01% | 5.01% | 4.95% | 5.03% | 5.03% | 5.02% | 4.69% | 4.49% | 3.71% | 4% | 3.46% | -8.69% | 3.67% | 3.77% | 3.44% | 3.25% | 3.68% | 3.77% | 3.57% |
| EBITDA Growth % | -5.3% | 19.05% | -10.83% | -23.88% | 60.92% | 103.69% | 13.32% | 4.82% | 7.75% | -2.65% | -0.79% | 12.39% | 17.65% | 20.1% | 35.65% | -1.41% | 32.23% | 130.83% | -282.23% | -2.25% | 16.37% | 17.52% | 0.86% | -1.84% | 2.82% | - |
| D&A (Non-Cash Add-back) | 89.9M | 82.4M | 75M | 67.7M | 69M | 41.9M | 38.5M | 36.2M | 33.7M | 32.1M | 30.7M | 29.5M | 26.4M | 24.3M | 22.6M | 22.5M | 29M | 22.2M | 30.8M | 28.48M | 26.34M | 24.67M | 22.43M | 26.87M | 25.93M | 30.77M |
| EBIT | 978M | 940.9M | 844.3M | 967M | 1.48B | 799.8M | 412.6M | 336.7M | 310.9M | 287.7M | 343.3M | 336.5M | 236.3M | 219.3M | 185.9M | 130.4M | 112.9M | 87.4M | -388.5M | 181.36M | 188.35M | 159.81M | 134.55M | 128.78M | 132.63M | -2.85B |
| Net Interest Income | -293.2M | -278.7M | -269M | -165.7M | -160.6M | -102.1M | -74.5M | -92.8M | -86.1M | -78.6M | -75.5M | -63.1M | -53.3M | -54M | -52.6M | -55.2M | -52.3M | -47.1M | -67.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 293.2M | 278.7M | 269M | 165.7M | 160.6M | 102.1M | 74.5M | 92.8M | 86.1M | 78.6M | 75.5M | 63.1M | 53.3M | 54M | 52.6M | 55.2M | 52.3M | 47.1M | 68.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -224.1M | -339.5M | -260.3M | -152.2M | 46.5M | -94.1M | -32.7M | -81.1M | -86.1M | -78.6M | -30M | -28.2M | -85.2M | -60.8M | -52.6M | -56M | -66.3M | -55.4M | -44.2M | -96.54M | -80.75M | -67.47M | -56.22M | -52.75M | -53.65M | -71.59M |
| Pretax Income | 684.8M | 662.2M | 575.3M | 801.3M | 1.32B | 697.7M | 338.1M | 243.9M | 224.8M | 209.1M | 267.8M | 273.4M | 183M | 165.3M | 133.3M | 75.2M | 60.6M | 40.3M | -457.4M | 84.82M | 107.59M | 92.34M | 78.33M | 76.02M | 78.98M | 51.85M |
| Pretax Margin % | 3.81% | 3.68% | 3.35% | 5.41% | 8.55% | 7.09% | 4.74% | 3.38% | 3.27% | 3.24% | 4.1% | 4.15% | 3.12% | 3.1% | 2.87% | 1.82% | 1.55% | 1.18% | -10.39% | 1.48% | 1.89% | 1.72% | 1.62% | 1.8% | 1.88% | 1.2% |
| Income Tax | 175.3M | 170.2M | 145M | 198.8M | 321.8M | 165.3M | 83.7M | 59.5M | 56.8M | 70M | 100.6M | 104M | 71M | 64.2M | 50M | 29.6M | 23.2M | 14.4M | -133.8M | 30.54M | 40.55M | 34.57M | 31.36M | 28.89M | 37.69M | 5.35M |
| Effective Tax Rate % | 25.6% | 25.7% | 25.2% | 24.81% | 24.4% | 23.69% | 24.76% | 24.4% | 25.27% | 33.48% | 37.57% | 38.04% | 38.8% | 38.84% | 37.51% | 39.36% | 38.28% | 35.73% | 29.25% | 36% | 37.68% | 37.44% | 40.04% | 38% | 47.72% | 10.32% |
| Net Income | 509.5M | 492M | 430.3M | 602.5M | 997.3M | 532.4M | 254.4M | 184.4M | 168M | 139.1M | 167.2M | 169.2M | 111.6M | 109.1M | 82.2M | 67.9M | 38.1M | 13.4M | -343.7M | 50.95M | 60.75M | 61.08M | 50.07M | 15.19M | 38.09M | 43.83M |
| Net Margin % | 2.83% | 2.73% | 2.5% | 4.07% | 6.46% | 5.41% | 3.57% | 2.56% | 2.44% | 2.15% | 2.56% | 2.57% | 1.9% | 2.04% | 1.77% | 1.64% | 0.98% | 0.39% | -7.81% | 0.89% | 1.07% | 1.14% | 1.04% | 0.36% | 0.91% | 1.01% |
| Net Income Growth % | -5.65% | 14.34% | -28.58% | -39.59% | 87.32% | 109.28% | 37.96% | 9.76% | 20.78% | -16.81% | -1.18% | 51.61% | 2.29% | 32.73% | 21.06% | 78.22% | 184.33% | 103.9% | -774.52% | -16.12% | -0.54% | 21.98% | 229.71% | -60.12% | -13.11% | - |
| Net Income (Continuing) | 509.5M | 492M | 430.3M | 602.5M | 997.3M | 532.4M | 254.3M | 184.4M | 168M | 139.1M | 167.2M | 169.4M | 112M | 101.1M | 83.3M | 48M | 37.4M | 25.2M | -323.1M | 54.29M | 67.09M | 57.77M | 52.74M | 47.13M | 41.29M | 45.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.4M | 700K | 0 | 0 | 0 | -6.34M | 0 | -2.67M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 26.82 | 25.13 | 21.50 | 28.69 | 44.52 | 26.49 | 13.18 | 9.55 | 8.28 | 6.62 | 7.40 | 6.41 | 3.71 | 3.51 | 2.61 | 2.08 | 1.14 | 0.41 | -10.84 | 1.53 | 1.78 | 1.86 | 1.48 | 1.34 | 0.99 | 0.80 |
| EPS Growth % | -2.37% | 16.88% | -25.06% | -35.56% | 68.06% | 100.99% | 38.01% | 15.34% | 25.08% | -10.54% | 15.44% | 72.78% | 5.7% | 34.48% | 25.48% | 82.46% | 178.05% | 103.78% | -808.5% | -14.04% | -4.3% | 25.68% | 10.45% | 35.35% | 23.75% | - |
| EPS (Basic) | - | 25.23 | 21.58 | 28.83 | 44.72 | 26.75 | 13.25 | 9.65 | 8.36 | 6.69 | 7.43 | 6.43 | 3.73 | 3.55 | 2.64 | 2.14 | 1.18 | 0.42 | -10.84 | 1.57 | 1.83 | 1.87 | 1.49 | 1.34 | 0.99 | 0.80 |
| Diluted Shares Outstanding | 19M | 19.5M | 20M | 21M | 22.4M | 20.1M | 19.3M | 19.3M | 20.3M | 21M | 22.6M | 26.4M | 30.1M | 31.1M | 31.5M | 32.6M | 33.3M | 32.9M | 31.7M | 33.3M | 34.07M | 32.9M | 33.83M | 32.72M | 38.47M | 34.02M |
| Basic Shares Outstanding | 19M | 19.4M | 19.9M | 20.9M | 22.3M | 19.9M | 19.2M | 19.1M | 20.1M | 20.8M | 22.5M | 26.3M | 29.9M | 30.7M | 31.1M | 31.8M | 32.2M | 32M | 31.7M | 32.5M | 33.19M | 32.69M | 33.61M | 32.65M | 38.47M | 34M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 54.36% | 21.96% | - | - | 19.82% | 30.41% | 51.58% |
Quick answers to the most common questions about buying ABG stock.
For fiscal year 2025, Asbury Automotive Group, Inc. (ABG) reported total revenue of $18.00B. This represents a 316.8% increase compared to $4.32B in 2001.
Asbury Automotive Group, Inc. (ABG) is profitable, generating $492.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Asbury Automotive Group, Inc. (ABG) reported an operating income of $1.00B, resulting in an operating profit margin of 5.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Asbury Automotive Group, Inc. (ABG) generated $3.07B in gross profit for the year, representing a gross profit margin of 17.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EPS miss and integration risk
Metrics are mathematically derived from official filings.
Revenue Growth Stalls Amid Integration
Revenue growth has decelerated to near zero, with Q2 2026 up only 0.3% year-over-year, according to the latest quarterly report, suggesting the Larry H. Miller and Stevinson acquisitions are no longer driving top-line expansion.
The flat revenue trend across the last four quarters, hovering around $4.1–$4.8 billion, indicates that organic growth may be offsetting acquisition contributions. The 13.3% growth in Q3 2025 appears to have been a temporary boost from integration, but the subsequent quarters show a clear plateau. This suggests that the company may be facing demand softness or integration-related disruptions that are capping revenue expansion.
Gross Margin Resilience Fades
Gross margin has slipped from 17.9% in Q1 2024 to 17.2% in Q2 2026, as reported in financial statements, indicating that the pandemic-era pricing power is normalizing and pressuring the company's profitability.
The gradual decline in gross margin, despite a stable revenue base, points to intensifying competition and a return to more traditional dealership economics. The company's gross margin remains above peers like Lithia (15.2%) and Group 1 (15.5%), but the trend suggests that the structural advantages from luxury brand mix may be eroding. Investors should monitor whether this compression continues as used vehicle prices normalize further.
Operating Leverage Turns Negative
Operating income fell 14.7% year-over-year in Q2 2026, while revenue grew only 0.3%, as per the income statement, indicating that SG&A costs are rising faster than sales and eroding operating leverage.
SG&A expenses increased from $475.4 million in Q2 2025 to $506.4 million in Q2 2026, a 6.5% rise, while gross profit grew only 0.2%. This divergence suggests that the company is absorbing higher personnel and technology costs, possibly related to the Tekion implementation, without corresponding revenue gains. The operating margin of 5.0% is now below the 5.9% reported a year ago, highlighting a clear deterioration in cost efficiency.
Earnings Volatility Masks Core Trends
Net income swung from $187.8 million in Q1 2026 to $114.6 million in Q2 2026, a 39% drop, based on reported figures, suggesting that one-time items or tax effects are distorting the underlying earnings power.
The EPS of $6.25 in Q2 2026 missed consensus by a wide margin, and the prior quarter's EPS of $9.88 was unusually high, possibly benefiting from a tax gain or other non-recurring items. The wide quarterly swings in net margin, from 1.3% to 4.6%, indicate that reported earnings are not a reliable indicator of the company's steady-state profitability. Investors should adjust for these anomalies to assess the true earnings trajectory.
SG&A Inflation Pressures Margins
SG&A as a percentage of revenue rose to 11.5% in Q2 2026 from 10.9% in Q2 2025, as disclosed in the income statement, indicating that cost discipline is slipping amid the technology transformation.
The increase in SG&A, both in absolute terms and as a percentage of revenue, suggests that the company is investing heavily in its digital platform and integration efforts without immediate payback. The lack of R&D spending, typical for dealerships, means that SG&A is the primary lever for operational efficiency. If the Tekion rollout does not yield productivity gains, these elevated costs could persist and further compress margins.
Q2 2024 Marks a Profitability Shock
Operating income plunged to $100.5 million in Q2 2024 from $262.8 million in the prior quarter, as per the income statement, representing a dramatic 62% collapse that signaled the end of the pandemic-era boom.
This quarter stands out as a clear inflection point, with operating margin falling to 2.4% from 6.3% in Q1 2024, likely due to inventory write-downs and a sudden normalization of used vehicle prices. The subsequent recovery to 5.0% by Q2 2026 has been uneven, indicating that the company has not fully regained its prior profitability peak. This episode highlights the cyclicality of the dealership model and the risk of margin compression during demand downturns.
Earnings Miss Signals Structural Weakness
The 11% EPS miss in Q2 2026, with EPS of $6.25 versus $7.02 consensus, as reported in the earnings release, suggests that the company's earnings power may be deteriorating beyond temporary integration issues.
Short-sellers could argue that the miss reflects a fundamental decline in F&I profitability or a failure to realize synergies from recent acquisitions. The lack of forward guidance compounds this concern, as management's silence may indicate limited visibility or confidence. If the Tekion transition is disrupting sales or service operations, the impact could be prolonged, and the company's high leverage (if the reported debt/equity is understated) could amplify downside risks. Investors should demand evidence of stabilization before assuming the current earnings level is sustainable.