Asbury Automotive Group Reports Revenue Increase to $8.52 Billion and 63% Net Income Growth

Asbury Automotive Group, Inc. reported a significant increase in financial performance for the six months ended June 30, 2025, with total revenue reaching $8.52 billion, up from $8.45 billion in the same period last year. The company's net income also saw a substantial rise, increasing by 63% to $284.9 million compared to $175.2 million in the prior year. This growth was primarily driven by a 5% increase in new vehicle revenue, which totaled $4.44 billion, and a 2% increase in parts and service revenue, amounting to $1.19 billion. However, used vehicle revenue declined by 5% to $2.52 billion, reflecting a decrease in retail unit sales.

The company experienced notable operational changes, including a decrease in asset impairment charges from $135.4 million in the previous year to $14.3 million in the current period. This reduction contributed to a 35% increase in income from operations, which totaled $491.7 million. Additionally, Asbury recorded a pre-tax gain of $10.1 million from the divestiture of several dealership locations, further enhancing its financial standing.

Asbury's strategic developments included the completion of the acquisition of The Herb Chambers Companies on July 21, 2025, for approximately $1.82 billion. This acquisition added 33 dealerships and 52 franchises to Asbury's portfolio, expanding its presence in the northeastern United States. The acquisition was financed through a combination of borrowings under existing credit facilities and cash on hand. The company also reported a total employee headcount of 8,000 as of June 30, 2025, reflecting its growth trajectory.

In terms of operational metrics, Asbury's new vehicle sales increased by 4% to 85,933 units sold, while used vehicle retail units decreased by 8% to 71,648. The company noted that the average age of vehicles in the market is historically high, which has driven demand for parts and service, resulting in a 3% increase in parts and service gross profit. The company anticipates continued growth in parts and service revenue as consumers retain vehicles for longer periods.

Looking ahead, Asbury Automotive Group remains optimistic about its future performance, despite potential challenges from macroeconomic factors such as rising interest rates and inflation. The company expects to leverage its expanded dealership network and the integration of TCA, its finance and insurance product provider, to enhance revenue streams. Asbury's management is focused on maintaining liquidity and capital resources to support ongoing operations and strategic initiatives, including potential future acquisitions.