Core Insights - The Presidio Group LLC, an independent merchant banking firm, advised Asbury Automotive Group on the sale of three dealerships in Greenville, S.C. to RBM of Atlanta [1] - The transaction included related real estate and closed on February 23 [1] Company Summary - Asbury Automotive Group is involved in the automotive retail sector and has executed a strategic divestiture of three dealerships [1] - RBM of Atlanta is the acquiring entity in this transaction, indicating potential growth or expansion in the automotive retail market [1] Industry Context - The transaction reflects ongoing activity in the mergers and acquisitions space within the automotive retail and consumer mobility sectors [1] - The involvement of an independent merchant banking firm like Presidio highlights the specialized advisory services available in the automotive industry [1]

ST. LOUIS--(BUSINESS WIRE)--The Presidio Group LLC ("Presidio†), an independent merchant banking firm focused on mergers and acquisitions, capital raising and investments in the automotive retail and consumer mobility sectors, advised Asbury Automotive Group, Inc. ("Asbury†) on the sale of six Plaza Motors dealerships and a collision center in the St. Louis market to MileOne Autogroup ("MileOne†). "This transaction highlights how leading groups are actively realigning their footprints to further their ...

Acquisitions and Growth - Asbury Automotive Group completed the acquisition of The Herb Chambers Companies for approximately $1.76 billion, increasing its footprint in the northeast region of the United States[27]. - The company also acquired the Jim Koons Automotive Companies for about $1.50 billion, diversifying its geographic mix into the greater Washington-Baltimore region[29]. - The company has experienced significant growth through acquisitions, including the Koons acquisition in 2023 and the Herb Chambers acquisition in 2025, leading to increased sales and assets[99]. - The acquisition of the Herb Chambers dealership group, which includes 33 dealerships and 52 franchises, is expected to positively contribute to the company's overall revenue objectives[63]. - The Company completed the Herb Chambers acquisition on July 21, 2025, for approximately $1.76 billion, acquiring 33 dealerships and three collision centers[217]. Financial Performance - Consolidated revenue for the year ended December 31, 2025, increased to $18.00 billion, up from $17.19 billion in the prior year, representing a growth of 4.7%[222]. - Consolidated gross profit for the year ended December 31, 2025, rose to $3.07 billion, compared to $2.95 billion for the prior year, marking an increase of 4.1%[222]. - The increase in revenue and gross profit was primarily driven by the Herb Chambers acquisition and growth in parts and services gross profit, despite lower gross profit per vehicle sold for new vehicles[222]. - The company recognized asset impairment charges of $141.0 million associated with manufacturer franchise rights and goodwill for the year ended December 31, 2025[108]. - The company's transaction-adjusted net leverage ratio was 3.2x as of December 31, 2025, compared to 2.9x as of December 31, 2024, indicating an increase in leverage[60]. Revenue Sources - As of December 31, 2025, Asbury operated 223 new vehicle franchises across 15 states, with a diverse revenue base that includes new and used vehicle sales, parts and services, and finance and insurance products[40]. - New vehicle revenues for the year ended December 31, 2025, included 32% from luxury franchises, 40% from import franchises, and 28% from domestic franchises[40]. - The company's Dealerships segment revenues are primarily derived from new vehicle sales, used vehicle sales, parts and service, and third-party vehicle financing[209]. - The TCA segment revenues are derived from the sale of various vehicle protection products, including vehicle service contracts and GAP[211]. Operational Strategy - The company emphasizes a diversified mix of products and services to minimize reliance on any single manufacturer and maintain profitability[25]. - The company is focused on improving profitability through the integration of TCA's full-suite F&I products across its dealership portfolio, anticipating higher profitability than third-party F&I products[56]. - The company invests in technology to enhance customer experience and operational efficiency, aiming for a more efficient guest experience at a lower cost[55]. - The company evaluates its dealership network continuously, making strategic investments to enhance capacity and customer experience[61]. - The company aims to create an inclusive workplace culture to attract and retain talented employees[84]. Market and Economic Conditions - The automotive retail industry is highly competitive, with the company relying on advertising, service reputation, and local branding to maintain its market position[64]. - The automotive retail industry is sensitive to economic conditions, with inflation impacting costs and consumer demand, potentially reducing profit margins[112]. - Economic conditions such as increasing interest rates and rising inflation may adversely impact demand for the Company's products and services[218]. - The automotive industry is experiencing technological advances, including electrification, which could impact sales and profitability[138]. Regulatory and Compliance Issues - The company is subject to various environmental laws and regulations, which may incur costs and capital expenditures for compliance[80]. - The company is facing significant regulatory pressure from the CFPB and FTC, which could materially impact its finance and insurance business[165]. - The FTC has initiated an administrative proceeding against the company and three of its dealerships, alleging violations of the FTC Act and Equal Credit Opportunity Act[165]. - The company is involved in numerous legal proceedings that could adversely affect its business and financial condition[172]. Employee and Talent Management - As of December 31, 2025, the company employed approximately 15,000 full-time and part-time employees, with no collective bargaining agreements in place[83]. - The company offers competitive compensation and benefits, including health, dental, and vision benefits, 401(k) match, and paid time off[90]. - The company has implemented a training curriculum for all store positions and guest experience training for all employees in 2024[88]. - The company emphasizes attracting and retaining top talent, investing in employee training and development to drive growth and optimize operations[57]. Risks and Challenges - Supply chain disruptions from natural disasters, pandemics, or geopolitical events could materially affect the flow of vehicle and parts inventories[121]. - Changes in consumer preferences, particularly towards electric and hybrid vehicles, could impact new and used vehicle sales volumes and profitability[116]. - The company may face limitations on acquiring additional franchises based on performance standards set by manufacturers[128]. - A decline in credit ratings or disruptions in credit markets could limit the company's liquidity and operational capabilities[149].

Core Insights - Park Place Dealerships, part of Asbury Automotive Group, Inc. (NYSE: ABG), has initiated the construction of a new Porsche dealership and an expanded Volvo facility in Dallas, indicating a strong commitment to enhancing the luxury automotive retail experience in North Texas [1] Company Developments - The project involves a significant investment in client experience and is expected to shape the future of luxury automotive retail in the region [1] - Park Place Dealerships acquired 15 acres of land in December 2024 for this development [1] - The state-of-the-art Porsche dealership is projected to be completed by 2027 [1]

Core Viewpoint - Asbury Automotive Group (ABG) has underperformed in the market, with a 23% decline in share value over the past year despite solid financial results [1] Financial Performance - The company has delivered strong financial results but has prioritized mergers and acquisitions (M&A) over share repurchases, which may have impacted its stock performance negatively [1]

Core Viewpoint - Asbury Automotive Group (ABG) has underperformed in the market, with a 23% decline in share value over the past year despite solid financial results [1] Financial Performance - The company has delivered strong financial results but has prioritized mergers and acquisitions (M&A) over share repurchases, which may have impacted its stock performance negatively [1]

Core Viewpoint - Asbury Automotive Group (ABG.US) reported its Q4 2025 financial results on February 5, 2026, showing revenue of $4.676 billion, which was below the expected $4.8709 billion but higher than the previous $4.505 billion. Earnings per share (EPS) were $6.67, slightly lower than the previous $7.26 but close to the expected $6.68 [1]. Financial Performance - Q4 2025 revenue was $4.676 billion, below the forecast of $4.8709 billion but above the prior quarter's revenue of $4.505 billion [1]. - The EPS for Q4 2025 was $6.67, which is lower than the previous EPS of $7.26 but near the expected EPS of $6.68 [1]. Stock Performance - The company's stock experienced notable movements in November 2025, including a single-day increase of 5.14% on November 26, although there have been no recent public announcements regarding the stock [2].

Core Viewpoint - Asbury Automotive Group (ABG.US) reported its Q4 2025 financial results on February 5, 2026, showing revenue of $4.676 billion, which was below the expected $4.8709 billion but higher than the previous $4.505 billion. Earnings per share (EPS) were $6.67, slightly lower than the previous $7.26 but close to the expected $6.68. This financial report is a significant event that may impact market sentiment and stock performance [1]. Financial Performance - Q4 2025 revenue was $4.676 billion, lower than the expected $4.8709 billion but higher than the previous quarter's $4.505 billion [1]. - EPS for Q4 2025 was $6.67, slightly below the previous EPS of $7.26 but near the expected EPS of $6.68 [1]. Stock Performance - The company experienced stock price volatility in November 2025, with a notable single-day increase of 5.14% on November 26, despite no recent public event announcements [2].

Financial Performance - Asbury Automotive Group achieved record annual revenues of approximately $18 billion for 2025, representing a 5% increase compared to the previous year [1] - The company reported record fourth-quarter revenues of $4.7 billion, up 4% year-over-year [1] - Net income for 2025 was $492 million, reflecting a 14% increase from 2024, while fourth-quarter net income was $60 million, down 53% due to one-time impairments [2] Strategic Initiatives - The company completed a significant acquisition of the Herb Chambers Automotive Group for $1.3 billion, which includes 33 dealerships, 52 franchises, and three collision centers [3] - Asbury is implementing a new cloud-based dealer management system (DMS) called Tekion, which is designed to enhance dealership operations [4][5] Operational Challenges - The transition to the new DMS has been challenging, as it requires dealerships to adapt to a new system that ties into various operations, leading to resistance from technicians [6][7] - During the transition period, Asbury had to maintain two DMS systems simultaneously, which is expected to negatively impact earnings in 2026 [7] - Despite initial resistance, technicians have reported that after familiarizing themselves with Tekion, they prefer it due to its efficiency and user-friendliness [8]

Core Insights - Asbury Automotive (ABG) reported Q4 2025 adjusted earnings per share of $6.67, missing the Zacks Consensus Estimate of $6.70 and down from $7.26 in the previous year, primarily due to lower gross profits from new vehicle sales and retail wholesale [1][10] - Total revenues reached $4.7 billion, a nearly 4% year-over-year increase, but fell short of the Zacks Consensus Estimate of $4.82 billion [1] Segment Details - New vehicle revenues increased by 3% year over year to $2.53 billion, missing the Zacks Consensus Estimate of $2.59 billion; retail units sold totaled 47,201, exceeding the consensus of 47,182 units; however, gross profit declined by 8% to $157.9 million, missing the estimate of $160 million [2] - Used vehicle retail revenues rose by 1% to $1.11 billion but missed the Zacks Consensus Estimate of $1.18 billion due to a decrease in units sold, totaling 33,782, which was down 4% year over year and below the consensus of 37,128 [3] - Retail used vehicle average selling price (ASP) increased by 6% to $32,993, surpassing the estimate of $31,558; gross profit from this segment was $59.4 million, up 16% year over year but below the estimate of $61 million [4] - Revenues from the used vehicle wholesale business grew by 11% to $177 million, beating the consensus of $173 million; however, gross profit fell by 50% to $0.9 million, missing the estimate of $3.42 million [4] - Finance and insurance business net revenues amounted to $201.4 million, up 1% year over year and exceeding the estimate of $186 million; gross profit was $189 million, up 2% year over year and beating the estimate of $177 million [5] - Parts and service business revenues reached $658.3 million, up from $590.4 million year over year but missing the estimate of $667 million; gross profit rose by 13% to $385.9 million, falling short of the consensus of $391 million [6] Other Financial Insights - Selling, general & administrative expenses as a percentage of gross profit increased to 66.7%, up 307 basis points year over year [7] - As of December 31, 2025, the company had cash and cash equivalents of $40.4 million, down from $69.4 million a year earlier; long-term debt rose to $3.57 billion from $3.14 billion [7] - The company repurchased approximately 212,000 shares for $50 million in Q4 2025, totaling about 433,000 shares for $100 million for the full year; $176 million remains available under its share buyback authorization [8]