Asbury Automotive Group Executive Transition: David Hult to Become Executive Chairman
Asbury Automotive Group announced that effective following the Company's 2026 Annual Meeting of Stockholders expected to be held in May, David Hult, President and Chief Executive Officer of Asbury, will transition to the role of Executive Chairman. The Asbury Board of Directors has elected Daniel E. "Dan" Clara, currently Chief Operating Officer, to succeed Mr. Hult as President and Chief Executive Officer. The Company also announced that in connection with the 2026 Annual Meeting, the Board expects to nominate Mr. Clara to the Asbury Board, and to name Bridget Ryan-Berman as Lead Independent Director. Tom Reddin, whose extended term as Non-Executive Chairman is set to expire at the Annual Meeting, is expected to remain on the Board. Additional details regarding Board composition will be included in the Company's proxy statement to be filed with the SEC.
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- Transaction Completion: The Matt Bowers Automotive Group successfully acquired Bill Estes Chrysler Dodge Jeep Ram on February 2, 2026, marking its first dealership location in Indiana and expanding its footprint across five states, thereby enhancing its market competitiveness.
- Strategic Expansion: This acquisition adds a third franchise under the Chrysler Dodge Jeep Ram brand for Matt Bowers Automotive Group, signifying its ongoing growth and diversification in the U.S. automotive retail market.
- Advisory Role: Hacman Financial served as the exclusive buy-side advisor, assisting Matt Bowers Automotive Group in completing the transaction, showcasing its expertise and influence in the automotive dealership M&A sector.
- Legal Support: Becker & Hebert, LLC provided legal counsel to Matt Bowers Automotive Group, while Hill Ward Henderson represented Asbury Automotive Group, ensuring compliance and smooth execution of the transaction.
- Strong Financial Performance: Asbury Automotive Group reported a record $4.7 billion in revenue and $793 million in gross profit for Q4 2025, achieving a gross profit margin of 17%, indicating robust market performance and profitability.
- Strategic Divestitures: The company divested 4 stores in the quarter and plans to divest another 9 by the end of Q1, with these 13 transactions collectively representing $750 million in annualized revenue, aimed at accelerating leverage reduction and optimizing the asset portfolio.
- Technology Upgrade Progress: The rollout of the Tekion system expanded to 15 additional stores in Q4, bringing the total to 38, with a full deployment across all platforms expected by fall 2026, enhancing operational efficiency and customer experience.
- Cautious Future Outlook: Management anticipates challenges in the first half of 2026 due to weather and transitional impacts, yet remains optimistic about long-term benefits, emphasizing ongoing investments and cost control strategies.
- Earnings Decline: Asbury Automotive Group reported a fourth-quarter net income of $60 million, translating to $3.10 per share, which represents a significant drop from last year's $128.8 million and $6.54 per share, indicating a marked decline in profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $129.3 million or $6.67 per share, showing a decrease compared to the previous year, yet reflecting the company's profitability under specific conditions.
- Revenue Growth: The company's revenue for the fourth quarter rose by 3.8% to $4.676 billion from $4.504 billion last year, suggesting a potential for sales growth despite the overall market challenges.
- Market Reaction: Although revenue increased, the decline in profitability may negatively impact investor confidence, particularly in the highly competitive automotive market, prompting Asbury to implement strategies to restore its profit levels.
- Earnings Beat: Asbury Automotive's Q4 non-GAAP EPS of $6.67 exceeded expectations by $0.01, demonstrating the company's robust profitability amidst challenging economic conditions.
- Revenue Miss: Although total revenue reached $4.7 billion, a 4.4% year-over-year increase, it fell short of expectations by $200 million, reflecting intensified market competition and fluctuations in consumer demand.
- Record Gross Profit: The company achieved a record gross profit of $793 million in Q4, up 6%, indicating effective execution in cost control and sales strategies, thereby enhancing overall profitability.
- Used Vehicle Growth: Same-store used retail gross profit per unit reached $1,749, an 18% increase, with total same-store used retail gross profit at $51 million, up 4%, showcasing strong demand in the used vehicle market and the company's competitive edge in this sector.
- New Board Member: Asbury Automotive Group has announced the appointment of Christopher DiSantis to its Board of Directors effective March 1, 2026, increasing the total number of directors to eleven, with ten being independent, thereby enhancing the board's independence and expertise.
- Audit and HR Committees: DiSantis's appointment also makes him a member of the Audit Committee and the Compensation & Human Resources Committee, where he is expected to provide valuable insights into the company's strategic planning and operations, driving performance in the competitive automotive retail market.
- Long-time Board Member Departure: Long-serving board member Philip Maritz has notified the board that he will not seek re-election, with his term ending at the 2026 Annual Meeting, marking a significant transition in Asbury's history, as Maritz's nearly 24 years of service have had a profound impact on the company.
- Strategic Development: Asbury Automotive Group initiated a multi-year strategic plan in 2020 aimed at increasing revenue and profitability through organic growth, acquisitions, and innovative technologies, with DiSantis's addition seen as a key factor in advancing this strategy and further enhancing the company's competitive position.
- Earnings Announcement Date: Asbury Automotive is set to release its Q4 earnings on February 5th before market open, with consensus EPS estimate at $6.66, reflecting an 8.3% year-over-year decline, while revenue is expected to reach $4.9 billion, indicating an 8.9% year-over-year increase, which will directly impact the company's stock performance.
- Historical Performance Review: Over the past two years, Asbury Automotive has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, demonstrating stability in profitability despite facing economic challenges, which could reassure investors.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and two downward revisions, while revenue estimates experienced no upward revisions and four downward revisions, indicating a divergence in market expectations regarding the company's future performance, potentially affecting investor confidence.
- Executive Appointment: Asbury Automotive recently appointed Daniel E. Clara as President and CEO, a move that may bring new strategic direction and management style to the company, further influencing its market performance and investor sentiment.







