Fixed Operations Bolster Profits as Big Six Dealers Post Record Q2

For the largest publicly traded auto retail groups in the U.S., the second quarter of 2025 brought record results in fixed operations. While vehicle sales continue to grab the spotlight, the real growth engine is aftersales-service, parts, and warranty work.

 

It’s a reminder of an old truth in the retail automotive industry: new and used vehicle sales are the entry point, but the long-term profits come from financing, servicing, and keeping customers connected to the dealership.

 

Lithia Motors: Aftersales as the Core Profit Driver

 

Lithia Motors of Medford, OR, reported $998 million in Q2 aftersales revenue, an increase of 8.5% over last year. For the first half of 2025, the company’s aftersales total stands at $1.9 billion, up 5.4% year-over-year.

 

On the company’s earnings call, CEO Bryan DeBoer underlined how critical aftersales is to the group’s overall strategy:

 

“If I grow top line in new and used vehicle sales, I get to 62% of my net profit generated from aftersales. That’s the massive point to remember.”

 

He also noted that scaling aftersales requires ongoing investment in people and infrastructure. Sales teams represent one of the biggest cost areas in SG&A expenses, but those investments ultimately pay off as customers return to fixed ops - and in the form of long-term loyalty.

 

Big Six Totals: A Rising Tide

 

Across the “Big Six” public dealership groups - Lithia, AutoNation, Group 1 Automotive, Sonic Automotive, Asbury Automotive, and Penske Automotive - fixed operations revenue hit $4.6 billion in Q2, up 9.3% compared to a year ago.

 

For the first half of 2025, the combined total is $9 billion, a 6.2% increase year-over-year. Part of that growth reflects easier comparisons, given the disruption in June 2024 when CDK Global was hit by a cyberattack that temporarily froze dealership operations nationwide.

 

Still, the momentum is undeniable. Aftersales revenue continues to show consistent gains across both customer-pay and warranty work, proving once again that fixed ops are the most reliable contributor to dealership profitability.

 

Asbury Automotive: Tech Investments and Growing Pains

 

Asbury Automotive Group of Duluth, GA, posted $590.8 million in parts and service revenue for Q2, up 5.6% from last year. For the first six months of 2025, the total reached nearly $1.2 billion, a 3.5% increase year-over-year.

 

CEO David Hult described steady growth in aftersales, with same-store gross profit up 7% for the quarter. He credited technology investments for helping Asbury improve efficiency and deliver a stronger service experience to customers.

 

In January 2024, Asbury partnered with Tekion, a cloud-based dealer management system (DMS) provider, in a move designed to streamline operations. The transition hasn’t been without challenges. Hult compared the switch to a “heart transplant,” acknowledging that even with careful planning, software issues and operational hiccups were part of the process.

 

A major acquisition also shaped Asbury’s Q2 results. The company closed its $1.2 billion purchase of Jim Koons Automotive Companies in late 2023, adding 20 dealerships, 29 franchises, and six collision centers to its portfolio. Hult confirmed that all Koons stores are now fully integrated into the new DMS, a milestone for the group’s long-term strategy.

 

Penske Automotive: Record Revenues in Service and Parts

 

Penske Automotive Group of Bloomfield Hills, MI, also reported strong Q2 results. The company’s retail automotive parts and service business generated $792.7 million in revenue, up 6.9% from the same period in 2024. For the first half of 2025, fixed ops revenue stands at $1.6 billion, a 5.5% increase year-over-year.

 

Rich Shearing, EVP of North American Operations, highlighted record levels of gross profit in both service and parts. Customer-pay revenue rose 6% compared to last year, while warranty work surged 24%. Penske is also working to maximize bay utilization and increase fixed-cost absorption - ensuring fixed ops covers more of the group’s overhead costs and reduces reliance on fluctuating vehicle sales.

 

Others in the Big Six

 

The remaining three groups - AutoNation of Fort Lauderdale, FL; Group 1 Automotive of Houston; and Sonic Automotive of Charlotte, NC - also reported year-over-year growth in aftersales during Q2. Each group credited increases in both customer-pay and warranty work for helping to drive profitability.

 

Why Fixed Ops Matters More Than Ever

 

The Q2 results for the industry’s biggest players reinforce a critical reality: service, parts, and warranty work are the backbone of dealership profitability. Vehicle sales bring customers in, but it’s fixed operations that create sustainable margins, repeat business, and customer loyalty.

 

As dealerships invest in technology, expand their service capacity, and integrate major acquisitions, fixed ops will continue to be the steady driver of earnings growth - helping retailers stay resilient in a market that’s constantly evolving.

 

For the Big Six and beyond, the lesson is clear: fixed operations don’t just support the business; they keep it running.

 

Originally published by WardsAuto - “Fixed Ops Fuels Profits as Big 6 Dealers Post Record Q2” (August 4, 2025).