- Current quarter diluted earnings per common share from continuing operations of $10.77 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $11.52, increases of 6.1% and 17.5%, respectively, over the comparable prior year quarter
- Total revenues and gross profit of $5.7 billion and $935.8 million, both quarterly records, increased 21.4% and 22.1%, respectively, over the comparable prior year quarter
- Parts and service gross profit of $402.8 million (as reported) and $355.1 million (on a same store basis), increased 27.1% and 14.0%, respectively, over the comparable prior year quarter, with strong customer pay same store revenue growth exceeding 13.6% in the U.S. and U.K.
HOUSTON, July 24, 2025 /PRNewswire/ — Group 1 Automotive, Inc. (NYSE: GPI) (“Group 1” or the “Company”), a Fortune 250 automotive retailer with 258 dealerships located in the U.S. and U.K., today reported financial results for the second quarter of 2025 (“current quarter”).
“We were pleased with our growth in the second quarter. Same store revenues increased 7.1%. Parts and service was a bright spot in both markets, driven by double digit same store growth in customer pay and a tailwind from warranty. F&I was also a good story, especially in the U.K. where same store gross profit per unit rose over 26%, and we closed on three outstanding dealerships in the U.S.,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer.
“The U.K. market continues to be challenging in terms of industry volumes and with BEV mandate-related margin pressures. Integration efforts are largely complete, and most U.K. brands are performing to expectations, with positive momentum anticipated in the second half of the year. SG&A leverage improvement remains a focus in the U.K., with room for further gains.
We’ll continue to pursue balanced growth while executing opportunistic share repurchases. Additionally, we’re actively reviewing underperforming stores and developing appropriate plans.”
Reconciliations for financial results, non-GAAP metrics and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.
Current Quarter Results Overview
- Total revenues for the current quarter were $5.7 billion, a 21.4% increase compared to $4.7 billion for the second quarter of 2024 (“prior year quarter”).
- Net income from continuing operations for the current quarter was $139.8 million, a 1.4% increase compared to $137.9 million for the prior year quarter.
- Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $149.6 million, a 12.4% increase compared to $133.1 million for the prior year quarter.
- Current quarter diluted earnings per common share from continuing operations was $10.77, a 6.1% increase compared to $10.15 for the prior year quarter. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $11.52, a 17.5% increase compared to $9.80 for the prior year quarter.
|
Second Quarter 2025 Key Performance Metrics (year-over-year comparable period basis) |
Consolidated |
Same Store (a non-GAAP |
||
|
Reported: |
2Q25 |
Change |
2Q25 |
Change |
|
Total revenues |
$5.7B |
+21.4 % |
$5.0B |
+7.1 % |
|
Total gross profit (“GP”) |
$935.8M |
+22.1 % |
$831.7M |
+10.1 % |
|
NV units sold |
55,763 |
+17.0 % |
48,565 |
+3.6 % |
|
NV GP per retail unit (“PRU”) |
$3,557 |
(0.3) % |
$3,552 |
(0.5) % |
|
Used vehicle (“UV”) retail units sold |
60,240 |
+22.3 % |
50,968 |
+4.9 % |
|
UV retail GP PRU |
$1,600 |
(2.3) % |
$1,653 |
+1.1 % |
|
Parts & service (“P&S”) GP |
$402.8M |
+27.1 % |
$355.1M |
+14.0 % |
|
P&S Gross Margin (“GM”) |
56.1 % |
+0.9 % |
56.0 % |
+0.9 % |
|
Finance and Insurance (“F&I”) revenues |
$237.8M |
+18.8 % |
$219.0M |
+10.6 % |
|
F&I GP PRU |
$2,050 |
(0.7) % |
$2,200 |
+6.0 % |
|
Selling, General and Administrative (“SG&A”) expenses as a % of GP |
69.0 % |
+418 bps |
66.6 % |
(55) bps |
|
Adjusted SG&A expenses (a non-GAAP measure) as a % of GP |
68.7 % |
+237 bps |
66.2 % |
+50 bps |
U.K. Update
The Company recognized $7.6 million in restructuring charges in the U.K. in the current quarter, consisting of additional workforce realignment and strategic closing of certain facilities. Year to date, the Company has recognized $18.7 million in U.K. restructuring charges. The Company expects additional less significant activities to occur in 2025, which are intended to further optimize operations and reduce costs.
Corporate Development
During the current quarter, the Company acquired two businesses involving three dealerships located in the U.S. These acquisitions are expected to generate approximately $330 million in annual revenues. Year to date, the Company has successfully acquired and integrated dealership operations with total expected annual revenues of approximately $430 million. The Company remains focused on quickly and efficiently integrating acquisitions into existing operations to drive incremental value creation for shareholders.
During the current quarter, the Company disposed of one Subaru dealership and one Chrysler Jeep Dodge RAM dealership in the U.S. and closed two Mercedes-Benz dealerships in the U.K. These dealerships generated approximately $175 million in annualized revenues, bringing year-to-date total annualized revenues associated with dealership dispositions and franchise terminations for the Company to $470 million.
Share Repurchases
During the current quarter, the Company repurchased 114,918 shares, at an average price per common share of $387.39, for a total of $44.5 million, excluding excise taxes of $0.4 million.
During the six months ended June 30, 2025, the Company repurchased 401,649 shares, representing approximately 3.0% of the Company’s outstanding common shares at January 1 of the current year, at an average price per common share of $416.62, for a total of $167.3 million, excluding excise taxes of $1.1 million.
As of June 30, 2025, the Company had an aggregate 12.9 million outstanding common shares and unvested restricted stock awards. As of June 30, 2025, the Company had $308.8 million remaining on its Board authorized common share repurchase program.
Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations in the open market, pursuant to Rule 10b5-1 trading plans or in privately negotiated transactions, and subject to Board approval and covenant restrictions.
Second Quarter 2025 Earnings Conference Call Details
Group 1’s senior management will host a conference call today at 10:00 a.m. ET to discuss the second quarter 2025 financial results. The conference call will be simulcast live on the Internet at http://www.group1corp.com/events. A webcast replay will be available for 30 days. A copy of the Company’s presentation will also be made available at http://www.group1corp.com/company-presentations.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Passcode: 1534973
A telephonic replay will be available following the call through July 31, 2025, by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay Code: 7076195
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 258 automotive dealerships, 322 franchises, and 39 collision centers in the United States and the United Kingdom that offer 36 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
