Group 1 Automotive Inc

Latest Results (03.04.2026):

Group 1 Automotive, Inc. — reporting on the fourth quarter 2025 (and full year 2025) — posted modest Q4 revenue growth but materially lower profitability versus prior year. Consolidated Q4 revenues were $5.58 billion (+0.6% YoY) with gross profit $874.4 million (‑0.5%); net income for Q4 fell to $43.6 million (‑54.0%) and diluted EPS was $3.52 (‑50.3%). For full year 2025, Group 1 reported $22.57 billion in revenues (+13.2%), gross profit $3.62 billion (+11.8%) and net income $325.2 million (‑34.7%), with diluted EPS $25.24 (‑31.4%).

Quarter at a glance

Q4 2025 consolidated highlights: total revenues $5.580B (+0.6%), total gross profit $874.4M (‑0.5%), income from operations $139.3M (‑28.1%) and net income $43.6M (‑54.0%). Diluted EPS was $3.52 vs. $7.09 in Q4 2024.

Full‑year performance

FY2025: revenues $22.57B (+13.2%), gross profit $3.62B (+11.8%), operating income $734.0M (‑19.3%) and net income $325.2M (‑34.7%). Adjusted/non‑GAAP measures show higher adjusted diluted EPS (non‑GAAP) versus GAAP but meaningful YoY EPS decline remained.

Revenue mix & operations

New vehicle retail revenues grew for the year (FY new vehicle sales $10.99B, +10.2%) but Q4 retail new units fell 5.0% (55,035 units). Used volumes were resilient: Q4 used retail units 55,474 (+0.2%) and FY used retail units 234,906 (+12.0%). Parts & service gross profit rose (Q4 P&S GP $394.2M, +6.3%; FY P&S GP ≈ $1.6B, +15.9%).

Margins & cost trends

Gross margin was largely stable (Q4 total gross margin 15.7%, ‑0.2 pts YoY) while SG&A pressure increased: Q4 SG&A was 71.7% of gross profit (+187 bps) and FY SG&A 70.3% (+304 bps). Adjusted operating and pretax margins declined versus prior year.

Capital allocation & balance sheet

Share repurchases continued: Q4 repurchased 755,792 shares for $305.0M (avg $403.60); FY repurchases totaled 1,343,229 shares (~10.1% of outstanding shares on Jan 1, 2025) for $554.8M (avg $413.05). Total debt rose to $3.70B at year‑end (+27% YoY); cash was $32.5M.

U.K. restructuring & charges

The company recognized $8.1M of U.K. restructuring charges in Q4 and $28.4M for 2025 related to a U.K. restructuring plan; management expects additional optimization actions and charges in 2026.

Other items & outlook considerations

Floorplan interest expense declined YoY, but other interest expense rose. Management noted disciplined portfolio activity (acquisitions with ~$640M expected annual revenue, dispositions totaling ~$775M annualized revenue) and reiterated focus on integration, cost optimization and continued share repurchases subject to board approval and covenants.