Asbury Automotive Group reported third quarter 2026 results that missed analyst expectations for both revenue and earnings. Performance was heavily impacted by the final rollout phase of the Tekion platform, which involved a record 47 store conversions during the quarter. Despite the operational friction, the company completed its company-wide technology initiative in mid-October and saw sequential growth in used retail volumes.
Key Highlights
- Adjusted EPS of $6.16 missed the consensus estimate of $6.42, representing a 14% year-over-year decline.
- Revenue of $4.41 billion fell short of the $4.51 billion estimate, driven by a 9% decline in new vehicle revenue.
- New vehicle gross profit per unit (GPU) normalized to $2,949, which exceeded the projected $2,850 despite broader industry compression.
- Adjusted SG&A as a percentage of gross profit expanded to 67.4% from 64.2% in the prior year, reflecting implementation costs and operational shifts during the DMS conversion.