Asbury Automotive Reports Q2 2026 Revenue of $4.38 Billion, Net Income Declines 25%

Asbury Automotive Group, Inc. reported its financial results for the second quarter and first half of 2026, revealing a total revenue of $4.38 billion for the three months ended June 30, 2026, a slight increase from $4.37 billion in the same period of 2025. For the first half of 2026, total revenue was $8.50 billion, down from $8.52 billion year-over-year. The company’s net income for the second quarter was $114.6 million, a decrease of 25% from $152.8 million in the prior year, while net income for the first half rose to $302.4 million, up 6% from $284.9 million.

The decline in quarterly net income was attributed to increased operating expenses, which rose to $506.4 million from $475.5 million, driven by higher selling, general, and administrative costs. Additionally, the company recognized asset impairment charges of $4.2 million during the quarter, compared to none in the previous year. The gross profit for the second quarter was $753.1 million, slightly up from $751.9 million, with parts and service revenue increasing by 6% to $634.6 million, offsetting declines in new and used vehicle sales.

Asbury's operational metrics showed a mixed performance. New vehicle revenue increased by 1% to $2.33 billion, while used vehicle revenue decreased by 4% to $1.24 billion. The company sold 44,245 new vehicles during the quarter, a decrease of 192 units compared to the previous year. The average revenue per new vehicle sold increased by 2% to $52,666, but gross profit per new vehicle sold fell by 13% to $3,124. The company’s parts and service gross profit rose by 5% to $374.2 million, reflecting strong demand for maintenance services.

Strategically, Asbury completed the acquisition of The Herb Chambers Companies in July 2025, which contributed to its geographic expansion and revenue growth. The acquisition added 33 dealerships and 52 franchises to its portfolio. However, the company also divested several franchises, recording a pre-tax gain of $125.8 million from the sale of 14 franchises in the first half of 2026. Asbury's total assets decreased to $11.41 billion as of June 30, 2026, down from $11.62 billion at the end of 2025, primarily due to a reduction in cash and cash equivalents and assets held for sale.

Looking ahead, Asbury anticipates continued challenges in the automotive market, including supply chain disruptions and fluctuating consumer demand. The company plans to focus on enhancing its operational efficiencies and expanding its service offerings through its Total Care Auto segment. Asbury maintains a strong liquidity position with $966.5 million available, which it expects will support its operational and strategic initiatives in the coming months.