Asbury Automotive Group (NYSE:ABG) reported a significant increase in first-quarter net income as the company aggressively thinned its dealership portfolio and realized higher margins on used vehicles.
The Atlanta-based retailer posted net income of $188 million, or $9.87 per diluted share, a 42% increase from the same period a year ago.
The surge in bottom-line profit was largely driven by the divestiture of ten dealerships and the termination of seven franchises during the quarter.
These transactions generated approximately $210 million in net proceeds.
On an adjusted basis, which excludes the impact of these divestitures and other non-core items, net income fell 24% to $102 million, or $5.37 per share, reflecting a broader industry cooling of new-vehicle margins.
Total revenue for the quarter reached $4.1 billion, supported by a gross profit of $727 million.
A bright spot in the operational data was the used-vehicle segment, where retail gross profit per unit climbed 16% to $1,847.
This growth indicates Asbury's ability to maintain pricing power in the secondary market even as interest rates and supply levels fluctuate.
As of April 28, 2026, more than 50% of Asbury’s stores have transitioned to the Tekion cloud-based dealer management system.
The move is intended to streamline the car-buying process and reduce the long-term cost of sales.
Meanwhile, the company remained active in its capital return program, utilizing $147 million to repurchase approximately 678,000 shares of its common stock.