Asbury Automotive Group Inc. now seeks to produce $32 billion in revenue by 2025 — including $6.2 billion that would come from buying more companies.
The revised 2025 revenue target announced Thursday is 60 percent higher than the $20 billion goal the public dealership group had set for the same timetable in December 2020. Asbury, which has been on a store buying spree highlighted by its December purchase of Larry H. Miller Dealerships, already had exceeded the portion of its previous goal slated to come from acquisitions.
"What was surprising was the extent of the upsizing of the 2025 Strategic Growth Plan," Seaport Research senior analyst Glenn Chin wrote to investors on Thursday. Chin specifically highlighted that $32 billion revenue goal and a $55-earnings-per-share target.
The $32 billion figure represents more than three times Asbury's 2021 revenue of $9.84 billion. But that 2021 number mostly fails to reflect Asbury's big deals last year, particularly for Larry H. Miller Dealerships, which was finalized near the end of the year. Asbury said its 2021 deals are worth a net $5.8 billion in annualized revenue after accounting for divestitures.