Group 1 Automotive (GPI) Q1 2025 earnings summary

Executive summary

• Total revenues reached $5.51 billion in Q1 2025, up 23.1% year-over-year, driven by strong U.K. performance, acquisitions, and organic growth in both U.S. and U.K. segments.

• U.K. operations set quarterly records with $1.6 billion revenue (up 92–110% YoY) and $217 million gross profit (up 92–109.6% YoY), benefiting from the Inchcape acquisition and cost savings.

• Adjusted net income rose 3.6% to $134.7 million, while net income from continuing operations fell 13.3–13.4% to $127.7–$128.1 million due to higher SG&A, interest, and restructuring costs.

• Adjusted diluted EPS increased 7.1% to $10.17, while GAAP diluted EPS declined 10–10.4% to $9.64–$9.67.

• U.S. operations saw steady growth in new and used vehicle sales, after-sales, and F&I, with technician headcount up 8% year-over-year.

Financial highlights

• Gross profit grew 20.1% to $891.9–$892 million; adjusted operating margin was 5.0%, up from 4.4% in Q1 2024.

• SG&A expenses rose 29.6–29.7% to $617.3 million; adjusted SG&A as a percent of gross profit increased to 69.2–69.5%.

• Adjusted operating cash flow was $138 million and adjusted free cash flow was $105 million.

• Finance & Insurance gross profit per retail unit rose 4% to $2,426.

• Weighted average diluted shares outstanding decreased 2.3% to 13.1 million.

Outlook and guidance

• Management expects further U.K. restructuring in 2025, targeting £22 million in additional cost savings.

• Ongoing monitoring of U.S. tariffs and trade policy, with contingency plans for market disruptions and readiness to adapt.

• Parts & Service segment expected to remain solid due to aging vehicle fleet and increased complexity.