David Hult has stepped down as chief executive officer of Asbury Automotive Group, Inc., taking on the role of executive chairman effective May 4, 2026, while Dan Clara is appointed as the new CEO. Hult’s eight‑year tenure saw the company’s revenue more than double, its share price triple, and earnings per share nearly quadruple, positioning Asbury as a leading automotive retailer across 14 states and 158 dealerships.
In its most recent quarterly report, Asbury posted GAAP net income of $187.8 million, a 42% increase from Q1 2025, largely driven by a $125.8 million gain on dealership divestitures. Adjusted net income, however, fell 24% to $102.3 million, and revenue slipped 1% year‑over‑year to $4.11 billion. Adjusted earnings per share were $5.37, missing the consensus estimate of $5.63, while revenue missed the $4.42 billion estimate. The results reflect operational headwinds from the ongoing Tekion dealer‑management‑system rollout, severe winter weather disruptions, and softer demand for new and used vehicles.
Segment analysis shows that the Parts & Service business grew 7% in Q1 2026, providing a tailwind amid broader revenue pressure. In contrast, new‑vehicle and used‑vehicle sales declined, contributing to a 9% drop in same‑store revenue. The mixed performance underscores the company’s reliance on service revenue to offset declining vehicle sales during a period of market softness.
Management emphasized the continuity of Hult’s strategic vision while welcoming Clara’s leadership. Tom Reddin, Asbury’s non‑executive chairman, said, “During his tenure, David Hult led Asbury through the largest period of growth in the company’s history….” Dan Clara added, “David’s visionary leadership and steadfast commitment to our people have laid the foundation for Asbury’s growth….” Hult remarked, “It has truly been an honor to serve as CEO…the fundamentals of our business are strong, and we are poised to maintain our momentum.”
The transition places Hult in a guiding role as the company navigates the Tekion implementation and continues its portfolio‑optimization strategy, including the July 2025 acquisition of The Herb Chambers Companies. Analysts have lowered price targets in light of the Tekion rollout’s short‑term disruption, but the company’s long‑term growth trajectory remains supported by its expanded dealership footprint and digital initiatives such as Clicklane.
Overall, the leadership change signals a balance between preserving the growth momentum built under Hult and injecting fresh operational focus under Clara. Investors should monitor the company’s ability to manage the Tekion transition and sustain service‑segment growth while addressing the headwinds that impacted Q1 2026 adjusted earnings.
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