ABG earnings analysis
What we found in ABG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Asbury Automotive Group's Q1 2026 results showed a revenue decrease of 1% year-over-year, amounting to $4,113 million. Although diluted EPS was reported at $9.87, significantly boosted by a one-time gain of $125.8 million from dealership divestitures, the company faces challenges with rising expenses and declining vehicle sales in several segments.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Held Steady Despite Challenges
- Total revenue for Q1 2026 was $4,113 million, only a 1% decline from $4,148 million in Q1 2025.
- Substantial EPS Growth from Divestiture Gains
- Diluted EPS rose to $9.87 from $6.71, an increase of 47%, largely due to a $125.8 million gain on dealership divestitures.
- Parts and Service Revenue Improved
- Parts and service revenue increased by 7% to $626.8 million, up from $587.6 million in the prior year.
- Used Vehicle Profitability Increased
- Used vehicle retail gross profit per unit grew by 16% to $1,847 due to tight inventory conditions.
- Manageable Debt and Solid Liquidity,
- Total available liquidity stood at $1.15 billion, including $6.4 million in cash and equivalents.
- Strong Control over Expenses,
- Despite increased selling and administrative expenses, controlling other costs led to maintaining a stable gross profit.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Performance Pressured by Higher Operating Costs
- SG&A expenses increased by 12% to $510.4 million, raising concern about operational efficiency.
- Decline in New Vehicle Sales
- New vehicle revenue dropped 2% to $2,100.8 million, reflecting declining sales volumes alongside higher consumer prices.
- Dependence on Market Conditions
- Potential impacts of economic conditions, including inflation and interest rates, create uncertainty for future business performance.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $9.87
- Gross margin
- 17.7%
- Operating margin
- 4.7%
- Segment
- Dealerships
- Segment
- TCA
What they said about what is next.
No explicit revenue or EPS guidance provided; management anticipates growth depending on market conditions and execution of operational strategies.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 20, 2026
- Asbury completed the Herb Chambers acquisition on July 21, 2025 for approximately $1.76 billion, adding 33 dealerships, 52 franchises and 3 collision centers and expanding its footprint to 223 franchises across 171…
- 10-Q · July 30, 2025
- Asbury Automotive reported quarter revenue of $4,373.1 million (Q2 2025) and diluted EPS of $7.76, with operating income of $257.4 million. Revenue and operating margin improved versus the year-ago quarter and versus…
- 10-Q · October 30, 2024
- Asbury reported Q3 revenue of $4,236.7 million, up $570.5 million (16%) year-over-year, driven by new and used vehicle sales and the Koons acquisition. Gross profit rose to $718.0 million (+$44.5 million) but operating…
- 10-Q · August 9, 2024
- Asbury reported Q2 revenue of $4,246.2 million, up $503.7 million (13%) year-over-year largely due to the Koons acquisition, but profitability deteriorated sharply as income from operations fell to $100.5 million and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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