Asbury Automotive Group reported a dramatic rebound in second-quarter net income, rising 444% to $152.8 million compared to the same period last year, when the company faced an 86% drop due to a cyberattack that disrupted its dealer management system. Revenue increased 3% to $4.4 billion, driven by a 4.1% rise in new vehicle sales.
The service and parts operations achieved a record gross profit of $354.8 million, reflecting a 4.4% increase. This success contributed to a 13% rise in adjusted net income, driven by divestitures and expenses related to acquisitions. In addition, the company announced its acquisition of Herb Chambers Automotive Group for $1.45 billion, which will strengthen its regional presence. Asbury is also optimizing its portfolio by selling nine dealerships, all while maintaining a strong focus on growth and profitability.
Here’s why it matters:
The strong financial recovery highlights the resilience of large dealer groups amid technological disruptions and market challenges. Growth in service and parts profits reinforces the importance of after-sales operations for dealers. The Herb Chambers acquisition signals ongoing consolidation in the retail auto space, which could affect local competition, inventory access, and pricing strategies. Dealers should also note how strategic portfolio management, including divestitures and acquisitions, is key to long-term success.
Key takeaways:
- Net income surged 444% year-over-year
Asbury’s Q2 net income jumped to $152.8 million, recovering from last year’s steep decline caused by a CDK cyberattack.
- New vehicle sales increased, used vehicle sales declined
New vehicle sales rose 4.1% to 44,437 units, while used vehicle sales fell 6%, reflecting shifting market dynamics.
- Service and parts profits reached record levels
Gross profit in service and parts hit $354.8 million, up 4.4%, underscoring the growing revenue importance of after-sales.
- Strategic acquisition of Herb Chambers expanded Asbury’s reach
The $1.45 billion deal adds a flagship group with a strong presence in a new region, broadening Asbury’s national footprint.
- Active portfolio optimization continues through dealership sales
Since Q2 started, Asbury sold nine dealerships, generating $250 million to $270 million in proceeds, supporting financial health and a growth focus.
