[Management View]
Asbury reported record revenue of $4.8 billion, driven by the integration of the Chambers Group acquisition and higher new vehicle volumes. Gross profit was $803 million with a margin of 16.7%. Adjusted EPS was $7.17, impacted by a $0.23 non-cash deferral from TCA. Adjusted EBITDA was $261 million. The company emphasized the positive impact of the Chambers Group acquisition and the ongoing rollout of the Techeon platform.

[Outlook]
Management expects continued strong performance in the luxury vehicle segment in Q4, despite potential macroeconomic headwinds. The Techeon rollout is anticipated to be completed by the end of next year, with full efficiency gains expected by the end of 2027. The company plans to focus on share repurchases and debt reduction over the next 12-18 months.

[Financial Performance]
- Revenue: $4.8 billion (record)
- Gross Profit: $803 million, margin 16.7%
- Adjusted EPS: $7.17 (including $0.23 non-cash deferral from TCA)
- Adjusted EBITDA: $261 million
- Same-store new vehicle revenue: +8% YoY
- Used vehicle unit volume: -4% YoY
- Free cash flow: $438 million YTD

[Q&A Highlights]
Question 1: Does the Chambers acquisition and EV sales impact new GPUs in Q4?
Answer: The fourth quarter is traditionally strong for luxury vehicles. EV volume doubled in Q3 compared to Q2, with lower gross profit per vehicle. Chambers' acquisition is expected to have a slightly accretive effect on new GPUs in Q4.

Question 2: Can you explain the significant reduction in TCA EPS accretion outlook for 2029?
Answer: The reduction is due to lower SAAR projections, delayed rollout of Coons stores, and the impact of recent acquisitions and divestitures. The EPS accretion is now expected to be delayed until SAAR recovers to 17 million.

Question 3: What is the outlook for SG&A to gross profit leverage in Q4 and 2026?
Answer: SG&A levels are expected to be maintained, with potential productivity gains and cost savings from the Techeon rollout. Transition-related expenses may impact the next few quarters.

Question 4: What is the expected EBITDA contribution from acquisitions and divestitures?
Answer: The net EBITDA contribution from acquisitions and divestitures is estimated to be slightly above $100 million annually.

Question 5: What are the capital allocation priorities going forward?
Answer: The focus will be on share repurchases and debt reduction, with M&A opportunities considered based on market conditions.

Question 6: Are there any regional or brand-specific trends in luxury vehicle performance?
Answer: Performance is more brand-specific, with Lexus being particularly strong. The company expects a strong luxury vehicle performance in Q4.

Question 7: Can you provide an update on the Techeon rollout and expected savings?
Answer: Techeon has been rolled out to 23 stores, with full rollout expected by the end of next year. Efficiency gains and cost savings are anticipated to fully materialize by the end of 2027.

Question 8: What more can be done to increase used vehicle acquisitions?
Answer: The focus is on digital marketing through Clicklane and leveraging the service drive. The company aims to balance volume and profitability, with more used vehicles expected to enter the market in 2026-2028.

[Sentiment Analysis]
Analysts were generally positive, focusing on the impact of the Chambers acquisition and the Techeon rollout. Management maintained a confident tone, emphasizing strategic priorities and future growth potential.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|---------------------------------|---------------|---------------|
| Revenue | $4.8 billion | N/A |
| Gross Profit | $803 million | N/A |
| Adjusted EPS | $7.17 | N/A |
| Adjusted EBITDA | $261 million | N/A |
| Same-store new vehicle revenue | +8% YoY | N/A |
| Used vehicle unit volume | -4% YoY | N/A |
| Free cash flow | $438 million | N/A |

[Risks and Concerns]
- Macroeconomic headwinds and potential softening of the labor market.
- Challenges with vehicle affordability.
- Delayed efficiency gains from the Techeon rollout.
- Lower SAAR projections impacting long-term EPS accretion from TCA.

[Final Takeaway]
Asbury delivered a record quarter with strong revenue growth driven by the Chambers Group acquisition and increased EV sales. The company is focused on completing the Techeon rollout and realizing associated efficiency gains. While there are some macroeconomic concerns, management remains optimistic about future performance, particularly in the luxury vehicle segment. The strategic priorities include share repurchases and debt reduction, with a balanced approach to capital allocation.