Here are 1-2 brief analogies for Asbury Automotive (ABG):

• Asbury Automotive is like "Best Buy, but for cars."
• Asbury Automotive is like "Marriott, but for car dealerships."

Asbury Automotive (ABG) primarily offers the following services and products:

• New Vehicle Sales: Sells new cars, trucks, and SUVs from various manufacturer brands.
• Used Vehicle Sales: Sells pre-owned cars, trucks, and SUVs of various makes and models.
• Vehicle Maintenance and Repair Services: Provides a full range of automotive services, including routine maintenance, diagnostics, and repairs.
• Parts Sales: Sells manufacturer-approved parts, accessories, and aftermarket parts for vehicles.
• Finance & Insurance (F&I) Products: Facilitates vehicle financing through third-party lenders and sells vehicle protection plans, extended warranties, and other insurance products.

Asbury Automotive (Symbol: ABG)

Asbury Automotive Group is one of the largest automotive retailers in the United States, operating franchised dealerships selling new and used vehicles, providing automotive repair and maintenance services, and selling vehicle parts. Therefore, the company sells primarily to individual consumers.

The categories of customers Asbury Automotive serves include:

• New Vehicle Purchasers: Individuals looking to buy brand-new cars, trucks, or SUVs from the various manufacturers that Asbury's dealerships represent (e.g., Toyota, Honda, Ford, Mercedes-Benz, BMW, etc.).
• Used Vehicle Purchasers: Individuals seeking to acquire pre-owned cars, trucks, or SUVs, either from their franchised dealerships or their stand-alone used vehicle stores.
• Service and Parts Customers: Individuals who own vehicles (regardless of where they were purchased) and require routine maintenance, repair services, warranty work, or genuine parts and accessories for their vehicles.

• Toyota Motor Corporation (TM)
• Honda Motor Co., Ltd. (HMC)
• Hyundai Motor Company (HYMLF)
• Nissan Motor Co., Ltd. (NSANY)
• Bayerische Motoren Werke AG (BMWYY)
• Mercedes-Benz Group AG (MBGYY)
• Ford Motor Company (F)
• General Motors Company (GM)
• Stellantis N.V. (STLA)

David W. Hult, President & Chief Executive Officer

Mr. Hult was appointed President and Chief Executive Officer of Asbury Automotive Group in January 2018, having previously served as the Executive Vice President and Chief Operating Officer from 2014 to 2018. Before joining Asbury, he was the Chief Operating Officer at RLJ-McLarty-Landers Automotive Holdings, LLC, a large private automotive retail organization, from 2013 to 2014. His career also includes senior management positions at Group 1 Automotive, Inc. from 2004 to 2012, and experience with Penske Automotive Group. Mr. Hult also serves as President & CEO of Nalley Ford Sandy Springs, Asbury Automotive Arkansas Dealership Holdings LLC, and Plano Lincoln-Mercury, Inc. He has over 30 years of extensive automotive retail experience.

Michael D. Welch, Senior Vice President & Chief Financial Officer

Mr. Welch became Senior Vice President and Chief Financial Officer of Asbury Automotive Group in August 2021. Prior to this role, he spent over 20 years at Group 1 Automotive, Inc., a NYSE-listed Fortune 500 automotive retailer. There, he served as Vice President and Corporate Controller from 2019 to 2021 and held various other positions of increasing responsibility from 2000 to 2019, gaining extensive experience in financial management, treasury, accounting, and auditing. Mr. Welch began his career at Price Waterhouse.

Daniel Clara, Chief Operating Officer

Mr. Clara was promoted to Chief Operating Officer in February 2025. He has been with Asbury Automotive Group for 23 years, most recently serving as Senior Vice President of Operations from 2020 to February 2025. Mr. Clara joined Asbury in July 2002 as a Client Advisor in the Management in Training program and has held numerous leadership positions within the company, including Vice President of Market Operations, Managing Market Director, General Manager, and various store-level roles.

Jed L. Milstein, Senior Vice President & Chief Human Resources Officer

Mr. Milstein serves as the Senior Vice President and Chief Human Resources Officer at Asbury Automotive Group.

Dean A. Calloway, Senior Vice President, General Counsel And Secretary

Mr. Calloway is the Senior Vice President, General Counsel and Secretary of Asbury Automotive Group.

The public company Asbury Automotive (symbol: ABG) faces several key risks to its business operations and financial performance. These risks stem from regulatory challenges, broader industry trends, and operational vulnerabilities.

1. Regulatory and Legal Challenges

   Asbury Automotive is currently facing allegations from the Federal Trade Commission (FTC) regarding deceptive sales practices. The FTC alleges that three of Asbury's dealerships systematically charged consumers for add-on items they did not agree to or were falsely told were mandatory. Furthermore, the FTC claims that the dealerships discriminated against Black and Latino consumers by targeting them with unwanted and higher-priced add-ons. Asbury Automotive has denied these allegations and stated its intention to vigorously defend against the lawsuit. An unfavorable outcome in this litigation could lead to significant financial penalties, reputational damage, and operational changes.

2. Industry Trends, Economic Uncertainties, and Supply Chain Disruptions

   The automotive retail sector in which Asbury Automotive operates is subject to significant shifts in consumer behavior, macroeconomic uncertainties, and the ongoing transition toward electric vehicles. The company's performance can be adversely affected by general economic conditions, both nationally and locally, which influence consumer confidence, interest rates, and purchasing power. Additionally, the business remains vulnerable to supply chain disruptions, market factors, and the availability of vehicles from manufacturers, particularly due to issues such as semiconductor chip shortages and other component scarcities that can impact vehicle supply and retail sales.

3. Cybersecurity Incidents, particularly Vendor-Related

   Asbury Automotive is exposed to cybersecurity risks, as evidenced by a recent cyber-attack on one of its vendors, CDK Global. This incident impacted critical services provided to Asbury and many other automotive retailers, affecting sales, service, inventory, customer relationship management, and accounting functions. While Asbury took precautionary steps, this event has adversely impacted its business operations, and the full scope, nature, and financial impact are still being assessed. Such incidents can lead to operational interruptions, data breaches, and potential financial losses.

• The increasing shift by automotive manufacturers towards direct-to-consumer (DTC) or agency models, particularly for electric vehicles (EVs). Brands like Tesla, Rivian, and Lucid operate exclusively DTC, and established manufacturers such as Ford and Mercedes-Benz are exploring or implementing similar models for their EV offerings. This trend could diminish the traditional dealership's role in new vehicle sales, pricing, and inventory management.
• A long-term reduction in high-margin service and parts revenue due to the widespread adoption of electric vehicles. EVs have fewer moving parts, require less routine maintenance (e.g., no oil changes), and experience less wear on components like brakes due to regenerative braking, which poses a threat to a significant portion of traditional dealership profitability.

Addressable Markets for Asbury Automotive Group (U.S. Region)

• New Vehicle Sales: The U.S. new car sales market is estimated to reach 15.9 million units in 2025.
• Used Vehicle Sales: The U.S. used car market size is estimated at USD 1.05 trillion in 2025, with 38.6 million units sold in the same year.
• Parts and Service (Automotive Aftermarket): The entire U.S. automotive aftermarket, which includes parts and service for light, medium, and heavy-duty vehicles, is projected at nearly $535 billion in 2024 and is expected to reach $472 billion by 2027.
• Finance and Insurance (F&I) Products: These products are typically integrated within vehicle sales transactions. The broader U.S. automotive dealership market, which encompasses new and used vehicle sales along with associated finance and insurance products, is valued at USD 2.95 trillion in 2025.

1. Strategic Acquisitions and Dealership Consolidation: Asbury Automotive is pursuing an aggressive strategy of acquiring smaller, independent dealerships to achieve economies of scale, expand its geographic footprint, and diversify its brand portfolio. This includes strategic acquisitions like the Herb Chambers Automotive Group, which is expected to bolster luxury sales and contribute to higher gross profit per vehicle sold.
2. Expansion of Parts and Service Operations: The parts and service segment is a high-margin business and a consistent revenue stream for Asbury Automotive. The company plans to continue expanding these operations, which have demonstrated strong gross profit growth and consistent results.
3. Digital Retailing and Omnichannel Integration (Clicklane): Asbury is investing in and expanding its robust online platforms, such as Clicklane, to allow customers to research vehicles, explore financing options, and initiate the purchase process online. This omnichannel approach integrates online and physical dealership experiences, catering to evolving consumer preferences for digital car shopping and driving sales.
4. Robust Finance & Insurance (F&I) Performance: The Finance and Insurance (F&I) segment is a significant profit driver for Asbury Automotive, often surpassing industry averages in performance. The company is leveraging technology integration to streamline the F&I process, aiming to make it more efficient and user-friendly, thereby increasing conversion rates and maintaining a reliable revenue stream.

Share Repurchases

• Asbury Automotive repurchased approximately 220,500 shares for $50 million during the third quarter of 2025.
• As of September 30, 2025, the company had $226 million remaining under its share repurchase authorization.
• Annual share buybacks amounted to $10.2 million in 2024, $11.4 million in 2023, and $9.2 million in 2022.

Share Issuance

• The number of shares of common stock outstanding as of October 28, 2025, was 19,440,558, reflecting a net reduction over the past few years, indicating repurchases outweighed issuances.

Outbound Investments

• Asbury Automotive completed the acquisition of The Herb Chambers Companies on July 21, 2025, for an aggregate net purchase price of $1.45 billion, adding 33 dealerships, 52 franchises, and three collision centers. This acquisition is expected to add $3.2 billion in revenue from 2024 figures and shifted Asbury's brand mix toward luxury vehicles.
• Between April and July 2025, the company divested nine stores, generating net proceeds of $250-270 million as part of its portfolio optimization strategy.
• On October 28, 2025, Asbury Automotive sold its Larry H. Miller CDJR Riverdale dealership in Ogden, Utah, to Young Automotive Group.

Capital Expenditures

• Asbury Automotive's financial management plans include maintaining its targeted range for capital expenditures.
• The company's operational expansion involves the rollout of the Tekion platform to enhance operational efficiency and transparency in vehicle sales and services.
• Heavy capital expenditures and occasional impairment charges are noted as areas for investor attention.