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    The Bull Case For Asbury Automotive Group (ABG) Could Change Following Mixed 2025 Results And Aggressive Buybacks

    Simply Wall St·02/19/2026 13:21:03
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    • Asbury Automotive Group reported past fourth-quarter 2025 results with revenue rising to US$4,676.5 million while net income fell to US$60.0 million, and full-year 2025 revenue increased to US$18.00 billion alongside higher annual net income of US$492.0 million.
    • Alongside these results, Asbury completed a past repurchase of 1,508,925 shares for US$330.29 million under its May 2023 buyback program, signaling continued use of capital returns even as quarterly profitability softened.
    • Against this backdrop of higher annual earnings but weaker quarterly profit and ongoing share repurchases, we’ll examine how this shifts Asbury’s investment narrative.

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    Asbury Automotive Group Investment Narrative Recap

    To own Asbury Automotive Group, you need to believe that a scaled auto retailer can keep converting dealership revenues into dependable earnings, even as the industry leans more digital and EV heavy. The latest results show full year 2025 net income of US$492.0 million alongside a softer fourth quarter, which is relevant for near term confidence but does not materially change the biggest short term risk around elevated leverage from recent acquisitions.

    The completion of the May 2023 buyback, with 1,508,925 shares repurchased for US$330.29 million, stands out alongside these earnings. It ties directly into the catalyst of capital returns and portfolio optimization, especially after large deals like Herb Chambers. How effectively Asbury balances buybacks, debt management and integration progress will be important for how investors weigh its earnings quality against its balance sheet risk.

    Yet even with share repurchases and higher annual profits, investors should be aware that rising EV adoption could still...

    Read the full narrative on Asbury Automotive Group (it's free!)

    Asbury Automotive Group's narrative projects $21.6 billion revenue and $676.4 million earnings by 2028.

    Uncover how Asbury Automotive Group's forecasts yield a $255.50 fair value, a 11% upside to its current price.

    Exploring Other Perspectives

    ABG 1-Year Stock Price Chart
    ABG 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already more cautious, expecting revenue of about US$20.2 billion and earnings near US$605 million by 2028, and this latest quarter may either reinforce their concern about margin pressure or prompt shifts in those views, especially if you worry that faster EV adoption could weaken traditional dealership economics over time.

    Explore 2 other fair value estimates on Asbury Automotive Group - why the stock might be worth just $255.50!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.