Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., reported first quarter 2025 net income of $132 million ($6.71 per diluted share), a decrease of 10% from $147 million ($7.21 per diluted share) in first quarter 2024. The Company reported first quarter 2025 adjusted net income, a non-GAAP measure, of $134 million ($6.82 per diluted share), a decrease of 9% from $147 million ($7.21 per diluted share) in first quarter 2024. During the full year 2024, the Company completed six divestitures that contributed estimated annualized revenue of $225 million. During the first quarter of 2025, the Company completed two divestitures that contributed estimated annualized revenue of $79 million.

“First quarter 2025 results highlighted the resiliency of our business and the focus of our team members as we delivered strong results against the backdrop of tariff uncertainty and unique weather challenges impacting many of our markets,” said David Hult, Asbury’s President and Chief Executive Officer. “The business continues to deliver and our commitment to strategic growth remains steadfast as we look forward to welcoming The Herb Chambers Automotive Group into the Asbury family.”

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 first quarter 2025 excludes, net of tax, $11 million of non-cash asset impairments ($0.54 per diluted share), $7 million of cyber insurance recovery proceeds ($0.38 per diluted share), $3 million related to gain on divestitures ($0.16 per diluted share) and $2 million of professional fees related to the pending acquisition of The Herb Chambers Automotive Group ($0.11 per diluted share).

There were no non-GAAP adjustments for the first quarter 2024.

First Quarter 2025 Operational Summary

Total Company vs. 1st Quarter 2024:

• Revenue of $4.1 billion, decrease of 1%

• Gross profit of $724 million, decrease of 3%

• Gross margin decreased 40 bps to 17.5%

• New vehicle unit volume increase of 2%; new vehicle revenue increase of 4%; new vehicle gross profit decrease of 12%

• Used vehicle retail unit volume decrease of 10%; used vehicle retail revenue decrease of 9%; used vehicle retail gross profit decrease of 14%

• Finance and insurance (F&I) per vehicle retailed (PVR) of $2,261, flat to prior year

• Parts and service revenue was flat to prior year; gross profit increase of 3%

• Selling, General and Administrative expenses (SG&A) as a percentage of gross profit of 63.0%

• Adjusted SG&A as a percentage of gross profit of 64.0%

• Operating margin of 5.6%

• Adjusted operating margin of 5.8%

Same Store vs. 1st Quarter 2024:

• Revenue of $4.1 billion, increase of 1%

• Gross profit of $724 million, decrease of 2%

• Gross margin decreased 43 bps to 17.5%

• New vehicle unit volume increase of 4%; new vehicle revenue increase of 6%; new vehicle gross profit decrease of 11%

• Used vehicle retail unit volume decrease of 8%; used vehicle retail revenue decrease of 8%; used vehicle retail gross profit decrease of 13%

• F&I PVR of $2,263, flat to prior year

• Parts and service revenue increase of 2%; gross profit increase of 5%

• SG&A as a percentage of gross profit of 62.9%

• Adjusted SG&A as a percentage of gross profit of 63.9%

• Operating margin of 5.7%

• Adjusted operating margin of 5.8%

Liquidity and Leverage

As of March 31, 2025, the Company had cash and floorplan offset accounts of $204 million (which excludes $37 million of cash at Total Care Auto, Powered by Landcar) and availability under the used vehicle floorplan line and revolver of $760 million for a total of $964 million in liquidity. The Company’s transaction adjusted net leverage ratio, which is calculated as set forth in our credit facility, was 2.75x at quarter end.

Earnings Call

Additional commentary regarding the fourth quarter results will be provided during the earnings conference call on Tuesday, April 29, 2025, at 10:00 a.m. ET.

The conference call will be simulcast live on the internet. The webcast, together with supplemental materials, and can be accessed by logging onto https://investors.asburyauto.com. A replay and the accompanying materials will be available on this site for at least 30 days.

In addition, live audio will be accessible to the public. Participants may enter the conference call five to ten minutes prior to the scheduled start of the call by dialing: