Group 1 Automotive Reports Third Quarter 2025 Financial Results

Group 1 Automotive, Inc., a Fortune 250 automotive retailer with 259 dealerships in the U.S. and U.K., has released its financial results for the third quarter of 2025. The company reported record quarterly revenues and significant growth in several key areas, despite facing challenges in the U.K. market.

Financial Highlights

For the third quarter of 2025, Group 1 Automotive reported total revenues of $5.8 billion, marking a 10.8% increase compared to the same period in 2024. The company's net income from continuing operations was $13.1 million, a significant decrease from $117.1 million in the prior-year quarter. However, the adjusted net income from continuing operations, a non-GAAP measure, was $135.1 million, reflecting a modest 1.2% increase from the previous year.

The diluted earnings per common share from continuing operations stood at $1.02, down from $8.68 in the prior-year quarter. Adjusted diluted earnings per common share from continuing operations were $10.45, a 5.6% increase from $9.90 in the prior-year quarter.

Business and Operational Highlights

Group 1 Automotive achieved record quarterly used vehicle retail revenues of $1.9 billion, driven by strong consumer demand. Parts and service revenues also saw an 11.2% increase, contributing to a record gross profit in this segment. The company sold 57,269 new vehicles and 59,574 used vehicles during the quarter, reflecting year-over-year increases of 6.5% and 6.6%, respectively.

In the U.S., the company added a Mercedes-Benz dealership in Georgia, enhancing its premium brand portfolio. However, the U.K. market remained challenging due to softer industry volumes and BEV-related margin pressure.

Strategic Initiatives and Corporate Developments

During the quarter, Group 1 Automotive acquired one dealership in the U.S., expected to generate approximately $210 million in annual revenues. Year to date, the company has acquired dealerships with total expected annual revenues of approximately $640 million. Additionally, the company repurchased 185,788 shares at an average price of $443.81 per share, totaling $82.5 million.

In the U.K., the company is restructuring its portfolio, including the potential sale or closure of certain franchise operations. This includes a $123.9 million impairment charge related to goodwill, franchise rights, and fixed assets.

Management's Perspective

Daryl Kenningham, Group 1’s President and CEO, highlighted the strong performance of the U.S. business across all major lines, attributing it to the exceptional execution of the company's teams and the strength of its diversified business model. He acknowledged the challenges in the U.K. market but emphasized ongoing restructuring efforts to enhance efficiency and position the company for future growth.

Future Outlook

Group 1 Automotive remains focused on optimizing its portfolio and leveraging aftersales and F&I as growth levers. The company anticipates further restructuring in the U.K. to reduce costs and improve operational efficiency. Management expressed confidence in emerging stronger as market conditions stabilize.

Original SEC Filing: GROUP 1 AUTOMOTIVE INC [ GPI ] - 8-K - Oct. 28, 2025