Group 1 Automotive (GPI) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenues of $5.7B and gross profit of $936M, up over 21% year-over-year, with adjusted net income up 12.4% and adjusted EPS up 17.5%.

• U.S. operations outperformed the industry in new car sales, while the U.K. team managed integration and growth amid macroeconomic headwinds.

• U.K. restructuring largely completed, with significant cost savings, headcount reductions, and positive momentum expected in H2.

• Strategic acquisitions of three U.S. dealerships and the Inchcape Retail acquisition in the U.K. expanded the footprint.

• Share repurchases totaled $167.3M YTD, representing 3% of shares, with increased dividends and ongoing portfolio optimization.

Financial highlights

• Q2 2025 gross profit reached $936M, with total gross margin at 16.4% and adjusted diluted EPS at $11.52, up 17.5% year-over-year.

• U.S. new car sales up 6% same store, used car volumes up 4%, and aftersales/parts & service gross profit up 14%.

• F&I revenues hit a quarterly high of $237.8M, with U.K. F&I gross profit per unit up over 26% year-over-year.

• SG&A expenses as a percent of gross profit increased to 69.0%; adjusted SG&A improved to 68.7%.

• Cash and cash equivalents at quarter-end were $52.7M, with total liquidity of $1.11B.

Outlook and guidance

• Management expects continued cost savings from U.K. restructuring and further SG&A leverage improvement.

• Aftersales growth expected to normalize to mid-single digits; warranty growth unlikely to sustain recent highs.

• Additional, though less significant, U.K. restructuring activities expected in 2025.

• Anticipate increased used vehicle demand due to new tariffs; parts & service segment expected to remain solid.

• Sufficient liquidity and compliance with debt covenants are expected to continue.