Asbury Automotive Group Reports Q2 2026 Earnings Call Details
Asbury Automotive Group (ABG) reported progress in its second-quarter earnings call for fiscal year 2026, highlighting the ongoing rollout of Tekion DMS across its stores. The company has surpassed a 70% implementation milestone and is seeing double-digit productivity gains in mature markets using the system since June. New vehicle pricing per retail (PVR) stabilized at $2.9 thousand on a same-store basis, signaling market normalization. The used vehicle strategy shifted from gross profit preservation to volume growth while maintaining healthy PVRs, supported by a 37-day supply of inventory. Fixed operations showed recovery in June with a 4% increase in same-store gross profit after initial dips during the DMS transition period. Management expects full Tekion rollout completion by October and anticipates improved operating efficiencies thereafter. Looking ahead, Asbury plans to return to normalized growth levels for parts and service as more stores exit the adaptation phase. The company is prioritizing share repurchases over M&A due to valuation dynamics while targeting a 3.0x net leverage ratio by mid-2027.
Topics: automotive operational performance technology integration