Asbury Automotive Group, Inc. reported third quarter 2026 net income of $105 million ($5.84 per diluted share), a decrease of 29% from $147 million ($7.52 per diluted share) in third quarter 2025. The Company reported third quarter 2026 adjusted net income, a non-GAAP measure, of $111 million ($6.16 per diluted share), a decrease of 21% from $140 million ($7.17 per diluted share) in third quarter 2025.
“We have completed one of the most ambitious technology initiatives in Asbury’s history, every active store is now operating on Tekion,” said Dan Clara, Asbury’s President and Chief Executive Officer. “Our teams converted 47 stores in the third quarter alone, the most in any single quarter, and finished the remaining active stores in October to bring the rollout across the finish line. Our longest-tenured Tekion markets achieved efficiency gains with customer pay gross profit up 7% and total parts and service gross profit up 5%. With one modern platform now powering the entire company, we have built a strong foundation to serve our guests, make faster decisions, and operate more efficiently.”
The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see “Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data” and the reconciliations for non-GAAP metrics used herein.
Adjusted net income for third quarter 2026 excludes, net of tax, $6 million ($0.32 per diluted share) related to Tekion implementation expenses, $1 million ($0.03 per diluted share) related to duplicative DMS-related expenses, and $1 million ($0.03 per diluted share) related to net gain on divestitures.
Adjusted net income for third quarter 2025 excludes, net of tax, net gain on divestitures of $27 million ($1.37 per diluted share), $9 million ($0.45 per diluted share) related to a non-cash asset impairment related to a pending disposal, $7 million ($0.37 per diluted share) of professional fees related to the acquisition of the Herb Chambers Automotive Group, $2 million ($0.12 per diluted share) in income tax expense related to the deferred tax true-up for the acquisition of the Herb Chambers Automotive Group and $2 million ($0.09 per diluted share) related to Tekion implementation expenses.
