Asbury Automotive Group Portfolio Optimization; Increase in Share Repurchase Authorization to Replenish Such Authorization to $500 Million of Availability
MWN-AI** Summary
Asbury Automotive Group, Inc. (NYSE: ABG), a prominent automotive retail and services company in the U.S., is intensifying its portfolio optimization strategy through significant actions involving dealership sales and share repurchases. The company recently finalized the sale of ten of its dealerships located across Indiana, Missouri, and South Carolina, generating approximately $210 million in net proceeds after accounting for mortgage payoffs and taxes. These dealerships collectively accounted for an annualized revenue of around $610 million.
In conjunction with this strategic move, Asbury announced an increase in its share repurchase authorization by $424 million, bringing the total availability under its repurchase program to $500 million. Year-to-date, the company has already repurchased $100 million worth of shares, demonstrating a strong commitment to provide value to its shareholders. Asbury's CEO, David Hult, emphasized that the sale of these dealerships aligns with their goal of reallocating capital to shareholder returns while concurrently aiming to reduce the company's leverage ratio to below 3.0x.
The expanded share repurchase program allows Asbury the flexibility to buy back shares through various methods, including open market transactions and privately negotiated deals, ensuring compliance with federal securities laws. The timing and extent of repurchases will be influenced by various factors, including market conditions and the company’s stock price.
Asbury Automotive Group’s ongoing focus on strategic acquisitions, revenue enhancement, and operational improvements positions the company well for future growth. As a recognized leader in the automotive sector, Asbury is committed to executing its strategy and enhancing shareholder value through its innovative business practices.
MWN-AI** Analysis
Asbury Automotive Group, Inc. (NYSE: ABG) has recently made significant moves to optimize its portfolio and return capital to shareholders, most notably through the successful sale of ten dealerships, unleashing approximately $210 million for future investments. This strategic decision aligns with its focus on reallocating resources for maximum shareholder value, particularly as the automotive retail landscape remains competitive.
With the recent approval to increase the share repurchase authorization to $500 million, Asbury demonstrates robust confidence in its financial outlook and operational strategy. The company's year-to-date repurchase totals indicate a commitment to enhancing shareholder returns, as it has already utilized $100 million to repurchase 441,000 shares. This proactive capital allocation is designed to reduce the leverage ratio below 3.0x, strengthening the balance sheet while concurrently returning capital to shareholders.
Investors should view the increased share repurchase authorization as a bullish signal, reinforcing management’s belief in the long-term value creation potential of Asbury. The flexibility of the repurchase plan, which allows for open market purchases or private negotiations, provides Asbury with the agility to respond to market conditions and stock price fluctuations effectively.
While the automotive sector grapples with various macroeconomic challenges, Asbury’s focus on strategic dealership acquisitions and operational enhancements positions it favorably for sustained profitability. The emphasis on a guest-centric approach coupled with a commitment to innovative technologies underscores the company's long-term growth strategy.
In light of these developments, investors keen on automotive retail should consider Asbury Automotive Group for its strong fundamentals, competent management, and attractive shareholder return policies. However, continuous monitoring of market conditions and economic indicators remains essential for advising on optimal investment timing and strategic positioning.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., announced the completed sale of ten dealerships across Indiana, Missouri and South Carolina as part of capital allocation and portfolio optimization efforts.
Asbury received approximately $210 million in net proceeds from the sale of the dealerships. The proceeds are net of mortgage payoffs for the real estate and estimated taxes. The annualized revenue from these ten dealerships was approximately $610 million.
In addition, the Company today announced that its board of directors approved an increase in the authorization of the share repurchase plan for the Company of $424 million. Year to date, the Company has spent $100M repurchasing 441,000 shares. As of February 25, 2026, the Company had $76 million of remaining availability to repurchase shares of common stock under its existing stock repurchase program. As a result, with the increase in authorization announced today, the total availability under the authorization is $500 million as of such date.
“The sale of these stores was the right decision for Asbury to ensure capital is being used for its highest return to shareholders,” said David Hult, Asbury’s president & chief executive officer. “The proceeds are expected to be invested in the Company to accelerate reduction of leverage ratio to below 3.0x and continue deploying capital to share repurchases. Additionally, the increased share authorization emphasizes our commitment to our shareholders and gives us confidence in the execution of our strategy and the outlook for our business.”
Under the amended stock repurchase program, the shares of common stock of the Company may be purchased from time to time in the open market, in privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements. The share repurchases could include purchases pursuant to a written trading plan in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which allows companies to repurchase shares of stock at times when they might otherwise be prevented from doing so by securities laws or under self-imposed trading blackout periods. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchase will depend on such factors as Asbury’s stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic dealership acquisitions and capital investments and other considerations. The program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Atlanta, Georgia, is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a multi-year plan to increase revenue and profitability strategically through organic operations, acquisitive growth and innovative technologies, with its guest-centric approach as Asbury’s constant North Star. Asbury presently operates 161 new vehicle dealerships, consisting of 209 franchises and representing 36 domestic and foreign brands of vehicles. Asbury also operates Total Care Auto, Powered by Asbury, a leading provider of service contracts and other vehicle protection products, and 38 collision repair centers. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, and prepaid maintenance. Asbury is recognized as one of America’s Fastest Growing Companies 2024 by the Financial Times, one of the World’s Most Trustworthy Companies for 2024 and 2025 by Newsweek, and one of America’s Most Successful Small-Cap Companies by Forbes for 2026.
For additional information, visit www.asburyauto.com .
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact and may include statements relating to goals, plans, objectives, beliefs, expectations and assumptions, projections regarding Asbury's financial position, liquidity, results of operations, cash flows, leverage, market position, the timing and amount of any stock repurchases, optimization of our dealership portfolio, revenue enhancement strategies, operational improvements, and business strategy. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied in our forward-looking statements, which risk factors are set forth in Asbury's filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225486022/en/
Investors & Reporters May Contact:
Joe Sorice
Sr. Manager, Investor Relations
(770) 418-8211
ir@asburyauto.com
FAQ**
How does the recent sale of ten dealerships impact Asbury Automotive Group Inc ABG's overall strategy for capital allocation and how will the proceeds be utilized to enhance shareholder value?
With the increased share repurchase authorization of $4million, what criteria will Asbury Automotive Group Inc ABG use to determine the timing and extent of stock repurchases in the current market conditions?
How does the capital raised from the sale of dealerships contribute to Asbury Automotive Group Inc ABG's goal of reducing its leverage ratio to below 3.0x, and what are the potential implications for future growth?
What insights can be derived from Asbury Automotive Group Inc ABG's recognition as one of America's Fastest Growing Companies and its commitment to operational improvements in terms of future financial performance?
**MWN-AI FAQ is based on asking OpenAI questions about Asbury Automotive Group Inc (NYSE: ABG).
NASDAQ: ABG
ABG Trading
-2.36% G/L:
$209.33 Last:
44,826 Volume:
$210.90 Open:
