{"url":"https://newsforagent.com/news/2026-11-07/asbury-tekion-dealership-software-conversion","markdown_url":"https://newsforagent.com/news/2026-11-07/asbury-tekion-dealership-software-conversion.md","title":"Asbury Completes Tekion Rollout Across All Dealerships","headline":"Asbury Automotive Group Completes Tekion Software Conversion at Every Dealership","description":"Asbury Automotive Group finished converting all dealerships to Tekion's dealer management software, with used retail volume up 4.5% and net leverage at 3.5 times.","section":"Earnings & Results","published_at":"2026-11-07T18:24:23+00:00","modified_at":"2026-11-07T18:24:23+00:00","author":"News Desk","key_takeaways":["Asbury Automotive Group completed converting all of its dealerships to Tekion's dealer management software, the company said on its October 27, 2026 earnings call.","Used vehicle retail volume rose 4.5% from the previous quarter, supported by store appraisal processes.","Asbury closed the quarter with a net leverage ratio of 3.5 times operating earnings and targets 3x by mid-2027."],"companies":[{"name":"Asbury Automotive Group","is_primary":true,"profile_url":null,"website":"http://www.asburyauto.com"},{"name":"Tekion","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0000lym/tekion","website":"http://www.tekion.com"}],"source":{"publisher":"The Motley Fool","title":"Asbury: 3 Key Takeaways for Long-Term Investors","url":"https://www.fool.com/earnings/takeaways/2026/11/07/asbury-3-key-takeaways-for-long-term-investors/"},"other_sources":[],"tags":["Earnings & Results","Asbury Automotive Group","Tekion"],"body_markdown":"Asbury Automotive Group completed the conversion of all its dealerships to Tekion's dealer management software, the company said on its third-quarter 2026 earnings call held October 27, 2026. The retailer closed the quarter with a net leverage ratio of 3.5 times operating earnings and targets 3x by mid-2027. [The Motley Fool](https://www.fool.com/earnings/takeaways/2026/11/07/asbury-3-key-takeaways-for-long-term-investors/) covered the call.\n\n## Asbury Finishes Tekion Conversion Across Stores\n\nAsbury is a publicly traded auto retailer that operates dealerships selling new and used vehicles and providing service and parts. Tekion is a private dealership software company whose Automotive Retail Cloud platform handles daily store operations; [Tekion](https://akta.pro/company-profiles/0000lym/tekion) has not published its revenue, and GetLatka estimates about $273.5 million annually as of September 2025, according to B2B SaaS Blog.\n\nEvery active Asbury store now runs on Tekion, according to the call. \"Every active Asbury store is now operating on Tekion, our single modern technology platform,\" said Daniel Clara, Asbury's President and Chief Executive Officer. Productivity typically dips during a six-month learning period before staff master the tool, but long-tenured stores are already delivering higher service profits, the company said.\n\nUsed retail volume rose 4.5% from the previous quarter, supported by disciplined store appraisal processes. \"Our used vehicle business continued to build momentum this quarter. And we are encouraged by the progress,\" Clara said.\n\nManagement is directing cash flow toward paying down debt rather than buying back stock or acquiring dealerships. \"Our target of 3x remains a priority for us, and we plan to reach it by mid-2027,\" said Michael D. Welch, Senior Vice President and Chief Financial Officer. Asbury expects selling, general, and administrative expenses as a percentage of gross profit to reach the low-60% range by late 2027 as store productivity builds.\n\n## Earlier Asbury Earnings and Store Moves\n\nAsbury reported third-quarter 2026 revenue of $4,413.6 million and net income of $105.1 million, both lower than the same period a year earlier, according to Simply Wall St. Nine-month diluted EPS edged higher to $22.10 from $21.99.\n\nAsbury completed its nationwide switch to Tekion's cloud-based dealer management system in the third quarter, linking 47 of 158 stores, WardsAuto reported. The shift aims to capture a surge in lease returns, with 3.1 million units expected in 2027.\n\nAsbury sold Kia of Owings Mills to Stivers Automotive Group, closing October 19, 2026, according to Stock Titan. The deal gives Stivers its first Kia dealership and expands its Mid-Atlantic footprint.\n\n## Asbury's Debt Target and Cost Goal\n\nAsbury plans to reach a net leverage ratio of 3x by mid-2027, Welch said. Management expects SG&A expenses as a percentage of gross profit to reach the low-60% range by late 2027. \"Once there, we will look for opportunities for share buybacks and tuck in acquisitions,\" Welch said.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}