Asbury Automotive Group Reports 13% Revenue Growth to $4.8 Billion in Q3 2025

Asbury Automotive Group, Inc. reported significant financial performance for the third quarter and the first nine months of 2025, with total revenue reaching $4.8 billion for the quarter, a 13% increase from $4.2 billion in the same period last year. For the nine months ended September 30, 2025, revenue rose to $13.32 billion, up 5% from $12.68 billion in 2024. The company's net income for the third quarter was $147.1 million, a 16% increase compared to $126.3 million in the prior year, while net income for the nine months surged 43% to $432 million from $301.5 million.

The growth in revenue was primarily driven by a 17% increase in new vehicle sales, which totaled $2.53 billion, and an 11% rise in parts and service revenue, amounting to $659.4 million. However, used vehicle sales saw a slight decline, with revenue decreasing by 1% to $3.93 billion for the nine-month period. The company attributed the overall revenue increase to higher sales volumes and improved gross profit margins in parts and services, despite a decrease in gross profit per new vehicle sold.

Strategically, Asbury completed the acquisition of The Herb Chambers Companies on July 21, 2025, for approximately $1.78 billion, which included 33 dealerships and 52 franchises. This acquisition is expected to enhance Asbury's market presence in the northeastern United States. The company financed the acquisition through borrowings under its existing credit facilities, which will likely increase future interest expenses. The acquisition contributed $523.4 million in revenue and $17.9 million in net income from the date of acquisition through September 30, 2025.

Operationally, Asbury's total assets increased to $11.77 billion as of September 30, 2025, up from $10.34 billion at the end of 2024. The company reported a total employee headcount of 8,500, reflecting its growth strategy. Additionally, the company repurchased 220,587 shares for $50 million during the nine months ended September 30, 2025, as part of its ongoing share repurchase program, which has a remaining authorization of $225.9 million.

Looking ahead, Asbury anticipates continued growth driven by its strategic acquisitions and an expanding service portfolio. However, the company remains cautious about potential economic headwinds, including rising interest rates and inflation, which could impact consumer spending and vehicle sales. The management expects to maintain sufficient liquidity to support its operations and capital expenditures, projecting a stable outlook for the remainder of the fiscal year.