Asbury Automotive Group Inc Q1 2026 Earnings Call Transcript

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.

Asbury Automotive Group Inc (NYSE: ABG) Q1 2026 Earnings Call dated Apr. 28, 2026

Presentation

Operator

Greetings and welcome to the Asbury Automotive Group first quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Reeves, Vice President of Finance and Treasurer. Thank you sir.

You may begin.

Chris Reeves — Vice President of Finance and Investor Relations

Thanks Operator and good morning. As noted, today’s call is being recorded and will be available for replay later this afternoon. Welcome to the Asbury Automotive Group’s first quarter 2026 earnings call. The press release detailing Asbury’s first quarter results was issued earlier this morning and is posted on our website@investors.asburyauto.com participating with me today are David Holt, our President and Chief Executive Officer, Dan Clara, our Chief Operating Officer 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, please see our filings with the SEC from time to time, including our Form 10K for the year ended December 31, 2025, any subsequently filed quarterly reports on Form 10Q 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 this 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 first quarter results.

It is my pleasure to now hand the call over to our CEO, David Hult.

David Hult — President & Chief Executive Officer

David thank you Chris and good morning everyone. Welcome to our first quarter earnings call. Our first quarter results highlighted efforts to transform our business by optimizing our portfolio and successfully migrating to techeon. Today, over 50% of our stores are running on Techeon. We remain on track and anticipate to be fully converted by the fall of this year, after which time we expect to begin fully realizing the cost and efficiency benefits enabled by the new technology platform. The first and second quarter of this year represent the peak in terms of number of stores making the transition.

As a result, costs related to integration and temporary disruption to store operations will also remain elevated as team members become fully acclimated to the new technology. Michael will provide additional color behind the transition and its impact on our financial performance. The first quarter also showcased a number of capital allocation decisions which Asbury which position Asbury for future success while also returning capital to our shareholders. We divested 10 dealerships and a collision center at attractive multiples representing approximately 600 million in annualized revenue.

147 million of the proceeds went towards repurchasing 678,000 shares of our stock, with the rest directed towards reducing our debt. In our view, our trading price undervalues the earning potential of the company and we took advantage of this price to value dislocation to accelerate our repurchase activity. Moving on to our first quarter 2026 operational performance, our results reflect the expected decrease in volumes as consumer demand moderated from last year’s tariff driven spike in sales. More challenging weather was also a factor, as was the temporary disruption for the stores going through the Techyon conversion.

While new vehicle volumes were down, gross profit on a per unit basis held up well on an all store basis. New vehicle PVRs were down just $73 sequentially and 177 on a year over year basis, an indication profitability is beginning to approach normalized levels. Similarly, used vehicle PVRs on an all store basis was $1,847 which is up sequentially 5% and 16% year over year. As the team continues to execute our strategy to maximize per unit profitability, Parts and Service had a more challenging quarter driven by a variety of factors including weather, a more cautious consumer and temporary disruption from our DMS transition.

That said, we still expect fixed operations gross profit to grow at mid single digit rate over time. And now for our consolidated Results. For the first quarter we generated 4.1 billion in revenue, had a gross profit of 727 million, a gross profit margin of 17.7%, an expansion of 22 basis points. We delivered an adjusted operating margin of 5%. Our adjusted earnings per share was $5.37 and our adjusted EBITDA was 207 million. Before I hand the call over to our incoming Chief Executive Officer Dan Clara, I want to take a moment to thank our team members for helping to make asbury Automotive, the company that it is today.

Together we have transformed our organization from a regional player to one with national scale in highly desirable markets, a balanced portfolio and a leader in technology focused investments. It has been an honor and a privilege to serve as a student of this business for the past eight and a half years and I know our best days are ahead with Dan running the company. Dan, I will hand things over to you to discuss our operational performance in more detail. Good morning

Dan Clara — Chief Operating Officer

Everyone. Thank you David for the kind words I feel I can speak for everyone here in saying that Asbury would not be as strong as it is today without your vision for growth and seeing the potential in this company. We all wish you the best in your next role as Executive Chairman. And now moving on to the quarter, I would also like to thank the team members for handling the challenges that were thrown at them this quarter, including severe winter weather in nearly all our markets and across multiple weekends.

Our teams have been working diligently to make the transition to Techyon a smooth process and we are pleased with the early progress our stores are making. Changing a DMS is a complex endeavor for any dealership group, let alone one of our size, but it is necessary in order to elevate the guest experience and enhance our capabilities for strong operational performance. As an example, we converted the Koons dealerships last summer and they are starting to show the power of the software for that specific group.

In March we saw gross dollars per technician of 21% year over year and average productivity per service advisor up 16%. We are seeing efficiencies extend beyond the service day as support cost in the stores decreased by 5% at the same time. And now I’m going to provide some updates on our same store performance which includes dealerships and TCA on a year over year basis unless stated otherwise. Starting with new vehicles, same store revenue year over year was down 9%. While we believe the winter weather impacted sales activity, we are also monitoring consumer behavior in light of ongoing geopolitical events.

New gross profit per vehicle was $3,061 as luxury maintained GPUs in line with the prior year and import in domestic moderated as expected on an all store basis which includes the positive impact of the Chamber’s platform. New gross profit per unit was $3,271 only, down $177 year over year across all brands. Our same store new day supply was a healthy 54 days at the end of March which we believe support resilient gross profit per unit. Turning to used vehicles first quarter total used gross profit was up 1%.

Sequentially used retail gross profit per unit was up 12% at $1,828, a $201 increase over the prior year and a $79 increase over our reported fourth quarter 2025 number. Our efforts in use continue to pay off. This represented our second consecutive quarter of progress in growing GPUs. We have seen sequential increases in GPUs in six out of the last seven quarters thanks to our teams executing more consistently. We anticipate the pool of used vehicles will increase through the year aided by lease return activity which can give us the opportunity to increase volume and maintain this level of PBR.

Finally, our same store used DSI was 30 days at the end of the quarter, down from 35 days at the end of the fourth quarter. Shifting to F and I, we earned an F and I PBR of $2,307. The non cash deferral impact of TCA was $45. So without the year over year impact the PBR would have been $2,351. We are on track to implement TCA in the Chamber stores by year end which will complete our rollout across all our platforms. And finally in the first quarter our total front end yield per vehicle was $4,806.

On an all store basis our front end Yield was up $70 year over year at $4,921. Now moving to parts and service, our same store parts and service gross profit was down slightly year over year due to slowdowns associated with the winter storms. In addition, it is also important to note that when we convert stores to Techyon, there is a short term effect of adjusting to the new software. At the store level we believe it takes about four to six months to overcome the muscle memory of the legacy software and start to see efficiencies take hold like those I mentioned earlier.

Now going back to the quarter’s results, customer pay gross profit was up 1% with warranty gross profit higher by 3%. During the month of March we generated 4% growth for both customer pay and warranty grosses, which was encouraging to see. April to date is trending similar to March. Overall, we believe our stores are well positioned for the extended period of growth within parks and service supported by the aging car park and increased vehicle complexity. Before I pass the call to Michael, I want to thank the team again for your hard work to deliver a guest centric experience and striving for improvement to unlock further performance.

And with that I will now hand the call over to Michael to discuss our financial performance. Michael

Michael Welch — Senior Vice President & Chief Financial Officer

Thank you Dan and good morning to our team members, analysts, investors and other participants on the call for our financial performance in the first quarter, adjusted net income was $102 million. Adjusted EPS was $5.37 in the quarter. In addition, the non cash deferral headwind due to TCA this quarter was $0.26 per share. Our adjusted EPS would have been $5.63 without the deferral impact. Adjusted net income for the first quarter 2026 excludes net of tax net gain on divestitures of $94 million, $5 million related Techeon implementation expenses, $3 million of weather related losses and $1 million related to the duplicate DMS related expenses.

In our consolidated results we estimate that the weather impacted gross profit by $19 million and EPS by $0.56. As stated in our press release this morning, during the quarter we divested 10 dealerships and terminated seven franchises which included exiting the Alfa Romeo and Maserati brands. Combined these stores generated an estimated annualized revenue of $625 million. Adjusted SGA as a percentage of gross profit on same store basis came in at 66.9% which includes $2 million related to legal expenses.

For a specific matter, in March we saw adjusted same store SGA in the low 60s, so we believe the SGA number would have been more solidly within our expectations for mid-60s range without the severe weather headwinds. As Dan mentioned, there are some frictional costs associated with changing our DMS that will take time to work out. In the short term, the stores are slightly less efficient in the first two months of operating in the new dms. In months four to six we see the stores become more efficient.

It is encouraging to see our team members lean into the tool and embracing the operational improvements the new platform can provide. Overall, we believe any short term headwinds are outweighed by the benefits to come. Before I move on, I will note that the one time implementation cost at the stores and the cost of duplicate software have been adjusted out of our non GAAP SGA numbers as shown in our press release this morning. Next, the adjusted tax rate for the quarter was 25.1%. We also estimate the full year 2026 effective tax rate to be 20 to be approximately 25%.

TCA generated 15 million of pre tax income in the first quarter. The negative non cash deferral impact for the quarter was $7 million. We generated $166 million of adjusted operating cash flow during the quarter. Excluding real estate purchases, we spent $46 million on capital expenditures in the first quarter and still anticipate approximately $250 million in CapEx spending for both 2026 and 2027. Adjusted free cash flow was $120 million for the first quarter. We ended the quarter with $1.2 billion in liquidity comprised of floor plan offset accounts, availability on both our used line and revolving credit facility, and cash excluding cash at total Care Auto.

Our transaction adjusted net leverage ratio was 3.2 times at the end of the first quarter. As David mentioned, we took opportunities to optimize our portfolio through strategic transactions. Our divestitures in the quarter also reduced our capex burden further, allowing us to deploy cash to higher return options. The proceeds of divestitures combined with the robust cash flow in our business allowed us to balance our capital allocation priorities, both reducing our debt level and repurchasing 678,000 shares.

Our diluted share count is approximately 18.6 million shares before adjusting for any future buybacks. And finally, before we open the Q and A, I would like to thank David for his years of valuable leadership. David guided Asbury through a new level of growth and instilled the team focused and guest centric culture that makes Asbury what it is today. And with that, this concludes our prepared remarks. We will now turn the call over to the operator and take your questions. Operator.

Question & Answers

Operator

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we poll for questions. Thank you. Our first question comes from the line of Jeff Lick with Stevens.

Please proceed with your question.

Jeffrey Lick

Good morning. Thanks for taking my question and David, just want to extend my thanks and you’ll be missed. But since we’ve got you, I was wondering if 1Q was obviously a pretty noisy quarter on a variety of fronts, weather being one of the most. I wonder if you can just give it a state of the union of kind of where we are for yourselves and in the industry in 2Q. You know, this thinking about, you know, new and then new has some implications for used and then obviously service and parts was a little lumpy.

I mean you did mention it was up in March, but you know, just kind of where do you think things stand now that the tax refund season’s over and you know, obviously we’re not going to be getting blizzards anymore the rest of this year?

David Hult — President & Chief Executive Officer

Sure, Jeff, I’ll take a shot and Dan can jump in. You know, January and February were really rough for us from a weather perspective and we got far behind the eight ball at that point. Before the weather started hitting in mid January, we were actually pacing well the first half of January and then once we got hit with all the weather, we kind of didn’t recover. March was a good sign for us. Last March and April were extremely strong with the tariff pre sales for lack of a better term. But we really bounced back and to Michael’s comment, you know, being in the low 60s for SG and A from March was a telltale sign for us.

We see the same going into April. Very difficult to predict much beyond that with what’s going on with the war and gasoline prices and other things and how long that lingers. One would think the longer that lingers, the more impactful that’s going to be on our business. We’re definitely feeling the slowdown. It’s not all the same by brand, but we’re still seeing slowdown in new car sales into April as well. And you know, just take top level. We’re essentially back about 4300 units or so in the quarter on new.

On a same store basis, you know, roughly you’re going to take in 23 to 2,500 trade ins on those 4,000 and you’re going to retail 80% of those cars. So there’s a chunk of pre owned that we normally have internally to sell that we don’t have. So it’ll be a balancing act the next few quarters if new doesn’t pop back where we’re going to source vehicles. But I think parts and services is going to bounce back nicely and continue to grow as the year goes on. It does take us four to six months with Techeon to get the muscle memory right in the stores.

It doesn’t matter the market or the brand. It’s just human behavior. Takes time. But once you get past that six month window, you can really start to see some efficiencies as to why, you know, we would make this change in the dmss. We do believe it makes our folks more efficient and more productive while certainly lowering our costs at the same time. I don’t know if there’s anything you want to add. I think you covered it. Nothing to add

Jeffrey Lick

And then just a quick follow up for Dan maybe is you wonder if you could just give us one thing with Techeon where you look at it and say, you know, it manifests itself been financial benefit. Where you say, you know what, we’re making the right decision here. Yeah, it’s, it might be a little noisy for four to six months, but you know, when you start to look at our P and L, a year or two years from now, we made the right decision. I was wondering if there’s one thing you could highlight.

Dan Clara — Chief Operating Officer

I think. Jeff, good morning. I think I covered it. Just one example of several that we’re seeing earlier today. When you think about the efficiencies that the new software brings, when you look at the gross dollars per technician being up 21% at Kuns and the average productivity per Service Advisor up 16% and then you add the fact that support cost has also decreased. It’s a pretty nice mix and aligned with what we expected. And then to put icing on the cake, the guest experience is definitely improved upon by the ease of using the technology, the ability to enhance how fast a guest can be served.

So we believe that it definitely gives us the competitive advantage that we need for the future and it is definitely the right thing to do.

Jeffrey Lick

Well, thanks very much and I’ll let someone else jump in.

Dan Clara — Chief Operating Officer

Thank you.

Operator

Our next question comes from the line of Rajat Gupta with JP Morgan. Please proceed with your question.

Rajat Gupta — Analyst, JP Morgan

Great, thanks for taking the questions. And then David, best of luck and hope to catch up at some point. Again, I wanted to just follow up on some of the first quarter results, especially around the new car units, even used car, you know, of 11% same store decline and the 12% in used. Is there any way to break up? How much of it was weather, how much of it was just the taking on productivity and then how much of it was market? Any way to parse that out would be helpful. And I have a quick follow up on sga.

Dan Clara — Chief Operating Officer

Yeah, Raja, good morning, this is Dan. I’ll start it on the. When you look at the weather impact I’m talking about from a same store basis, we believe the Snow closure in Q1 affected us somewhere in the 500 car range and similarly in used car volume. And then when you, when you go down to the fixed revenue as well, obviously that had a tremendous impact somewhere on the same store basis, somewhere around a $13 million impact. So it was significant impact. And as you know, when we have weather related issues, it’s not just the day that we’re closed, it’s the days leading up to with all the media frenzy that happens and the days after the fact recovering.

David was in the Northeast at that time and as you know, the Northeast was hit pretty severely and there were piles and piles of snow. So it was definitely a big impact. But glad that it’s behind us and glad that March showed that we are directionally correct and glad that April is similar to March so that we can continue to build on the momentum.

Rajat Gupta — Analyst, JP Morgan

And how much do you think you lost due to like just the takeeon rollout in 1Q. You know, because you know you’ll probably close the store for like a day and you know, like the Mondays. I’m curious if that had any meaningful impact on the units. I know it probably impacted services, but anything on the units that you could flag?

Dan Clara — Chief Operating Officer

So yeah, on the I don’t have the exact number, Michael. I don’t know. We have not shared that number. But you bring up an excellent point because when we roll out the Techyon stores, we go through the conversion Saturday and Sunday and we close operations on that Monday. So that is definitely a day that we lose from being able to serve our guests. And then Tuesday we reopen. But again, that’s a completely new system. We’re much slower than what we used to be until we developed that muscle memory that like I explained earlier, it takes between four to six months to get back to the efficiency levels.

Rajat Gupta — Analyst, JP Morgan

Got it, got it. And just to clarify Mike’s comments on SGA on the call, in the prepared remarks, I think you mentioned mid-60s excluding the weather headwinds. Just want to make sure we heard that correctly. And is it mid-60s even excluding some of the productivity losses from the DMS transition? I’m curious, like what’s a good steady state number post stakeion? You know, if you did not have weather, if it did not have DNS transition, what would have been a good steady state as GNA to gross number in the quarter?

Michael Welch — Senior Vice President & Chief Financial Officer

Yeah, I think, you know, based on the March results that we saw that were in the low 60s, I think mid-60s without the weather would have been the right number for the first quarter. So we’re still comfortable in that mid-60s range going forward. Then some point in the back half of the year as we start to see the Techyon efficiencies come through. Don’t know if that’s fourth quarter or where that shakes out, but sometime we’ll start seeing an approach toward the mid-60s after we get the techie on efficiencies running through the system.

Rajat Gupta — Analyst, JP Morgan

Got it. Just a final one on Buybacks. Given the fact that you’re ramping up buybacks here while EBITDA is coming down, I’m curious, is this you taking a view on the benefits of the tachyon rollout and the benefits you might see into 27 and beyond? That’s giving you that confidence given like the cyclical backdrop still looks a bit choppy here. So curious like just thinking around, you know, the buybacks ramping up. Thanks.

Michael Welch — Senior Vice President & Chief Financial Officer

So couple things in there. In the first quarter, you know we disposed of the stores and so we used those proceeds to buy additional shares in the quarter. But also as the share price continue to dislocate and get to low levels and attractive prices for us, we took a view that we need to take advantage of that stock price. We do think the back half of this year and in the 27 the EBITDA comes up dramatically with the Tech Young rollout behind us. And so we’re kind of trying to balance the leverage ratio and the share buybacks and if the share price is low, we’re going to lean in a little bit on share buybacks.

Rajat Gupta — Analyst, JP Morgan

Understood. Great. Thanks for taking the questions and get back in queue.

Operator

As a reminder, if you would like to ask a question, press Star one on your telephone keypad. Our next question comes from the line of Glenn Chin with Seaport Research. Please proceed with your question.

Glenn Chin — Analyst, Seaport Research

Good morning. Thank you. Just another follow on related to techeon. Can you just confirm for us sort of the contour of the techeon impact throughout the year? Do the costs and inefficiencies from the transition peak in 2q?

Michael Welch — Senior Vice President & Chief Financial Officer

No. So if you think about just the stack up Effect we have, first quarter was pretty heavy rollouts. 2Q has a decent amount of rollouts and then we go kind of handle the west and 3Q and so just the stack of all the stores. If you think about that four to six month window, it’ll probably peak in 3Q at some point. Call it sometime in 4Q. We should be able to flip over the we have more stores that are past the four to six months but I would say the peak of it is going to be very late 2Q and the 3Q is kind of where the peak will be.

Glenn Chin — Analyst, Seaport Research

Okay, very good. And then understood that you’re going to adjust out sort of the explicit cost from Techyon. Those timeline around those Michael is also same.

Michael Welch — Senior Vice President & Chief Financial Officer

Yeah. Or is that different? No, it should be similar. You know 2Q and 3Q. 2Q probably has a few less stores in it and 3Q has a few more. So just from an implementation cost perspective, you know, it’ll be in a similar ballpark to 1Q but maybe a little lighter in 1Q and a similar in 3Q when you compare it to 1Q.

Glenn Chin — Analyst, Seaport Research

Okay, very good. And then I think, Dan, you mentioned in your prepared remarks as well as last quarter just hesitation around the consumer with respect to parts and service. Can you just any further elaboration on that, if you will?

Dan Clara — Chief Operating Officer

Yeah. Glenn, good morning. You know, we saw a pullback as you mentioned in Q4 going into Q1. There’s a lot of uncertainties going on out there. So I would say that it is somewhat consistent. But keep in mind there’s a new war that has started that is with oil prices at an all time high, it’s just keeping people on more of the defensive side of it. But again, when I go back into my remarks earlier today, it’s encouraging to see what we saw in April. Customer pay up. And seeing that same trend going into April.

I’m sorry, in March, going into April.

Glenn Chin — Analyst, Seaport Research

Okay, very good. Thank you. That’s it for me. David, we’ll miss you. Good luck with everything and your new position.

Dan Clara — Chief Operating Officer

Thank you.

Operator

Our next question comes from the line of Alex Perry with Bank of America. Please proceed with your question.

Unidentified Participant

Hi. Thanks for taking my questions here. I guess just first I wanted to double click a little bit more on sort of the current state of demand with where gas prices have gone and just the impact of consumer confidence. On the new vehicle side, when did you start to see the slowdown? Is that more sort of an April comment? And is that, you know, just on, on new. Are you seeing any impact to mix yet in terms of the mix of vehicles that consumers are buying and what are you sort of seeing unused?

Dan Clara — Chief Operating Officer

Yeah. On the, on the new car, you know, it really goes back to I mentioned this on the fourth quarter there was, we didn’t really get the pop, for a lack of a better term, that we get in December. January, as David mentioned earlier today, the first half of January, before we got hit with the weather, we were pacing okay. And then we just never recovered from the weather. So from a Nucor perspective, I will tell you that really after the weather never recovered, February about the same. In March, the same trend continued from a mix.

You know, typically when you see gas prices hit the levels where we are right now, it usually takes five to six months for consumers to start really changing their buying habits. We have not seen that. And what I mean by that is a consumer that is going to trade in a Chevy Tahoe for a Honda Civic or what have you, we have not seen that. But the longer the war goes, I think the closer we’re going to be getting to see a shift in consumer behavior. But we’re not there yet. And from a used core standpoint, you know, the, the demand of used cars is there.

Especially with the difference in the cost of sale between a new and used car. When you factor in all the items that have gone up, insurance rates, the average cost of maintaining a car, when you look at all that, the demand is definitely there for used cars. We strategically have made the decision to not chase the volume and to maximize the gross profit. And as we showed in Q4, we were heading Gross Profit Q1. You know, when you look at March, again, even though we were backwards in volume, our gross profit was ahead year over year for used cars.

So we believe strongly that that is the right strategy to continue to monitor, to execute. And as the availability of used cars become readily available as we move throughout the year, then we can pull that lever while still protecting the margins that we have delivered over the last few quarters.

Unidentified Participant

Gotcha. Gotcha. That makes a lot of sense. And then I guess I just wanted to ask a little bit more on the parts and service trend. If we think about comps from here, I think you mentioned them, you know, rebounding, you know, earlier in the call. Is that primarily a factor of, you know, just getting past the weather impact? Is there something you’re seeing in terms of, you know, sort of, you know, delayed effect from people that would have came in the first quarter, you know, starting to come in?

Like, can you just maybe talk about how you, how you think about the parts and services and what sort of drives that rebound,

Dan Clara — Chief Operating Officer

You know, the parts and service, We’ve always been saying mid single digits. We have a, we’ve developed a very strategic plan to go and grow our fixed operations, meaning parts and service. And no different than what we’ve done with used cars. It’s about the execution. When you think about, and you can see it on the IR deck, the average miles coming through our shop continue to be in that 70,000 mile range. So that gives us a lot of stability that we are retaining the guests and obviously that, you know, that we have the opportunity to continue to maintain those cars for those customers.

And the last factor that I see, tremendous potential is growing the CPRL count and really focusing on what we call the cycle time. How fast can we serve our guests, which is also one of the benefits that I mentioned earlier of going to Techyard. The faster we get that guest in and out, the higher the retention and the higher propensity for that customer to come back and do business with us and the more throughput that we can push through our service department departments.

Unidentified Participant

Perfect. That’s really helpful. Best of luck going forward.

Operator

Our next question comes from the line of John Babcock with Barclays. Please proceed with your question.

John Babcock — Analyst, Barclays

Hey, Corinne. And thanks for taking my questions. I guess just first of all, I was wondering if you could talk about Herb Chambers, how the integration is going there and if there’s anything new to share on that front. And then also if you can just remind us, you know, when you’re planning on implementing Techyon into that business.

Dan Clara — Chief Operating Officer

Yeah, Herb Chambers integration is going well. We very happy with the talent, the people. We got some great team members, great stores. And what they have built together is impressive. And now is up to all of us to work together as a team to take it to the next, to the next level. Techyon rollout at Chamber started last month. We’ve already converted. I think we have 22 stores. 22 or 24 stores, call it in the 20 range with the rest of the stores. I think we have eight more that are going to be converting in the month of May or June.

I’m sorry, in the month of June. So by June, Chambers will be completely converted to Techyard.

John Babcock — Analyst, Barclays

Okay, thanks for that. And the next question, just on GPUs, because you do break it out across luxury, imports and also domestic. And it seems like quarter over quarter, there was pretty good stability in luxury and imports, but domestic was down a decent bit. Is there anything we should take note of from those trends or.

Dan Clara — Chief Operating Officer

The biggest impact that I’m seeing on domestic side is we still have the headwind of Stellantis. We are well aware of it. We’re focusing on performing better with Stellantis, getting that inventory turned and maximizing the gross profit. But it really the biggest impact in the domestic was our Stellantis stores.

John Babcock — Analyst, Barclays

Okay. And then just my last question just was wondering if you could share how much, if any shares you’ve bought back in April.

Michael Welch — Senior Vice President & Chief Financial Officer

Yeah, any shares we would have bought back in April would have been disclosed as part of the press release. So we did, you know, we did our share buybacks early on in the quarter, took advantage of some share prices then and so that all those, all those shares were kind of purchased January through March.

John Babcock — Analyst, Barclays

Okay, sounds good. Thank you.

Operator

A final reminder, if you would like to ask a question, press Star one on your telephone keypad. Our next question comes from the line of Brett Jordan with Jefferies. Please proceed with your question.

Bret Jordan — Analyst, Jefferies

Hey, good morning. On the Spilantis, are you seeing any improvement in the trend? I mean, it seems as if maybe they’re making some product adjustments or maybe pricing adjustments. Are you seeing any traction there or is it pretty much the same

Dan Clara — Chief Operating Officer

From a high level? There is, there are changes being made that make total sense and it is a step in the right direction. But you know, it’s a double edged sword because when they make those changes, I’ll give an example, they adjust the pricing for the new models coming in. Well, we still have the same model that is a year older, that is more expensive than the new model coming in. And so that is where there is some pressure to the margins to be able to make sure that we liquidate that old inventory under the old pricing structure to make room for the new decisions that the management team is making.

Bret Jordan — Analyst, Jefferies

Okay. And then I guess on the parts and service side of the business, you had a pretty hard warranty comp year over year. Could you sort of talk about what you’re seeing? Are there any major warranty programs that are popping up that might give you some tailwind in volumes in the balance of this year?

Dan Clara — Chief Operating Officer

Yeah, we had some big warranty comps. I’ll tell you one of the, I wouldn’t say surprises, but one of the, I guess, obstacles that we faced is one of our import OEMs had a major decrease in warranty issues last quarter. Which, you know, obviously warranty is something that we don’t control. So we happily service the customers when they come in, but it’s really outside of our control moving forward. We’ve seen some of the domestics that have issued some recalls and some additional warranty work, but it’s hard to tell.

Like I said, warranty is important. I pay attention to it, but I cannot control it. That’s why our focus is always on the customer pay. We’ll just happily serve the guests when the OEMs have any warranty issues. Thank

Bret Jordan — Analyst, Jefferies

You.

Operator

Our next question comes from the line of Ryan Sigdal with Craig Hallam. Please proceed with your question.

Matthew Robb

Hey, thanks. This is Matthew Rob on for Ryan. Just want to go back to the new GPUs, maybe putting a finer point there. You know, we’ve talked in the past about settling out in that 2,500 to 3,000 range. You’re at 3,000, 271. Feels like inventory is pretty rational and you’re certainly getting the benefit of the Herb Chambers mix. I mean, at this point is there any reason why GPUs can’t settle out near the higher end of that range? And if you have any expectation for new GPUs for 26, whether it’s a year end number or quarter over quarter decline through the rest of the year, that’d be great.

Dan Clara — Chief Operating Officer

Matt, thank you. Great question. I agree with you. For the last several quarters we’ve been talking about 2,500 to 3,000. We believe now that that number is moderating and it is closer to that 3,000 range. So to your point, excellent question.

Chris Reeves — Vice President of Finance and Investor Relations

Thank you.

Operator

We have no further questions at this time. Mr. Hull, I’d like to turn the floor back over to you for closing comments.

David Hult — President & Chief Executive Officer

Thank you operator. We appreciate everyone joining our first quarter earnings call and the team here looks forward to discussing our second quarter results in the future. Have a great day.

Operator

Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.