As vehicle margins ease in choppy year, publics rely more on fixed ops and F&I
The six publicly traded U.S. dealership groups entered 2026 on soft footing, as U.S. trade and economic policies delivered volatile results in 2025 and pulled demand into earlier quarters. That left the fourth quarter without a catalyst to drive vehicle sales, leading to lower profitability. Fourth-quarter and full-year 2025 results showed moderating gross profit from vehicle sales, with fixed operations and finance and insurance carrying more of the earnings load.
Collectively, the public groups — Lithia Motors Inc., AutoNation Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Asbury Automotive Group Inc. and Sonic Automotive Inc. — generated a total of $826 million in adjusted net income in the fourth quarter, down 16% from the same period in 2024. All six reported lower adjusted net income for the quarter.