Asbury Automotive Group Reports $4.113 Billion Revenue in Q1 2026, Net Income Rises 42%

Asbury Automotive Group, Inc. reported a total revenue of $4.113 billion for the first quarter of 2026, a decrease of 1% from $4.149 billion in the same period of 2025. The decline was primarily driven by a 2% drop in new vehicle revenue, which totaled $2.101 billion, and a 2% decrease in used vehicle revenue, amounting to $1.206 billion. However, parts and service revenue increased by 7% to $626.8 million, contributing positively to the overall revenue mix. The company’s net income rose significantly to $187.8 million, a 42% increase from $132.1 million in the prior year, reflecting a strong performance in dealership divestitures, which generated a pre-tax gain of $125.8 million.

In terms of operational changes, Asbury's acquisition of The Herb Chambers Companies in July 2025 has continued to impact its financial results. The acquisition added 33 dealerships and 52 franchises, enhancing the company's geographic footprint in the northeast United States. The financial results for the Herb Chambers businesses contributed $566.1 million in revenue and $14.7 million in net income during the first quarter of 2026. However, the company also faced challenges from divestitures, which affected revenue and gross profit figures.

Asbury's operational metrics showed a mixed performance. The total number of new vehicle units sold decreased by 5% to 39,282, while the average revenue per new vehicle sold increased by 4% to $53,480. The used vehicle retail units sold also fell by 6% to 33,202, reflecting ongoing inventory constraints and market conditions. The company’s parts and service segment saw a 7% increase in revenue, driven by higher customer pay and warranty service volumes, indicating a growing demand for maintenance services as vehicle ages increase.

The company’s selling, general, and administrative expenses rose by 12% to $510.4 million, primarily due to the integration of the Herb Chambers businesses and increased operational costs. This increase in expenses contributed to a 17% decline in income from operations, which fell to $193.9 million. Despite these challenges, Asbury maintained a strong liquidity position with total available liquidity of $1.15 billion as of March 31, 2026, which includes cash, available funds in floor plan offset accounts, and credit facility availability.

Looking ahead, Asbury Automotive Group anticipates continued growth driven by its strategic initiatives, including the rollout of its finance and insurance products through Total Care Auto, powered by Asbury (TCA). The company is also focused on managing its inventory levels and optimizing its dealership operations to navigate the current economic landscape, which includes rising interest rates and inflationary pressures. The outlook remains cautiously optimistic as the company aims to leverage its expanded footprint and operational efficiencies to enhance profitability in the coming quarters.