Asbury Automotive Reports Q3 2026 Revenue Decline Amid EV Sales Drop and Technology Transition
Asbury Automotive Group (ABG) reported a challenging third quarter for 2026, with total revenue falling 8% to $4.4 billion. The decline was primarily driven by lower new vehicle unit volumes and pricing pressures. A significant factor in the downturn was a 76% year-over-year collapse in electric vehicle sales following the expiration of tax credits, which accounted for a substantial portion of the drop in same-store new vehicle units. Despite these headwinds, the company successfully completed its transition to the Tekion technology platform across all active dealerships. While adjusted net income fell 21% to $111 million and SG&A expenses were elevated due to implementation costs, management is focusing on deleveraging, aiming to reduce their transaction adjusted net leverage ratio below 3x by mid-2027. The company maintains a strong liquidity position of $1.0 billion.