Asbury Automotive Group Inc

Greetings and welcome to the Asbury Automotive Group Q3 2025 Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star 1 on your telephone keypad. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star 0. It's now my pleasure to turn the call over to Chris Reeves. Vice President, Finance and Investor Relations. Please go ahead, Chris.

Thanks, Operator, and good morning. As noted, today's call is being recorded and will be available for replay later this afternoon. Welcome to Asbury Automotive Group's third quarter 2025 earnings call. The press release detailing Asbury's third quarter results was issued earlier this morning and is posted on our website at investors.asburyauto.com. Participating with me today are David Holt, our President and Chief Executive Officer for Paul Whatley, our Vice President of Operations, and Michael Welch, our Senior Vice President and Chief Financial Officer. At the conclusion of our remarks, we will open up the call for questions and will be available later for any follow-up questions. Before we begin, we must remind you that the discussion during the call today is likely to contain forward-looking statements. Forward-looking statements are statements other than those which are historical in nature, which may include financial projections, forecasts, and current expectations. each of which are subject to significant uncertainties. For information regarding certain of the risks that may cause actual results to differ materially from these statements, we see our filings with the SEC from time to time, including our Form 10-K for the year ended December 31, 2024, and any subsequently filed quarterly reports on Form 10-Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward-looking statements. In addition, certain non-GAAP financial measures, as defined under SEC rules, may be discussed on the call. As required by applicable SEC rules, we provide reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on our website. Comparisons will be made on a year-over-year basis unless we indicate otherwise. We have also posted an updated investor presentation on our website, investors.asburyauto.com, highlighting our third quarter results. It is now my pleasure to hand the call over to our CEO, David Holt. David?

Thank you, Chris, and good morning, everyone. Welcome to our third quarter earnings call. Our acquisition of the Chambers Group has already had a positive impact on many of our operating metrics, and while it is still early in the integration process, I am pleased with how our teams are coming together. We've talked many times in the past about how our transition to TECION will transform how we sell and service vehicles and deliver a superior guest experience. Our litigation with CDK has reached the point where we can continue migrating stores onto the new DMS. Moving on to our operating performance for the quarter, pent-up consumer demand and the expiration of the EV tax credit drove strong new volumes. on our new vehicle performance on an all-store basis highlights the impact of our herb chambers acquisition and the heavier weighting towards luxury brands. In the near term, we'll be opportunistic and react to what the market gives us. Our parts and service business delivered consistent results once again, with same-store gross profit up by 7% and the customer pay segment up by 8% in the quarter. As referenced earlier, Growing the business while avoiding expense leakage is a top priority for the team. In the third quarter, our same-store SG&A as a percentage of gross profit was 63.6%, a decrease of 32 basis points. Our strategy for deploying capital to its highest and best use has primarily emphasized large, transformative acquisitions that expand our portfolio in the most desirable markets. Going forward, we are focused on de-levering the balance sheet, optimizing the makeup of our portfolio, and being opportunistic with share repurchases. As a reminder, we divested four stores in July with annualized revenue of $300 million in keeping with our disciplined approach to portfolio management. We resumed opportunistic share repurchases buying back $50 million in shares in the quarter. The pace of future share repurchases will be dictated by portfolio management activities, share price levels, and returns offered by organic and inorganic opportunities. And now for our consolidated results for the third quarter. We generated a record $4.8 billion in revenue, had a gross profit of $803 million, and a gross profit margin of 16.7%. We delivered an adjusted operating margin of 5.5%. And our adjusted earnings per share was $7.17. And our adjusted EBITDA was $261 million. At the end of my remarks, I traditionally hand the call over to Dan Clara to walk through our operational performance. However, Dan was not able to be with us today, so I'll hand the call over to Paul Whatley, Vice President of Operations, who's been doing a phenomenal job running our stores. Now Paul will discuss our operational performance in more detail.