Group 1 Automotive (GPI) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and annual revenues, with Q4 revenue of $5.5B (up 24% YoY) and full-year revenue of $19.9B (up 11.5% YoY), driven by strong U.S. performance and significant U.K. acquisitions.

• Set all-time records for retail new and used vehicle units sold, with U.S. and U.K. both contributing to growth.

• Strategic acquisitions, including Inchcape in the U.K., enhanced geographic and brand diversification.

• Focused on a pure play new vehicle dealer model, investing in technology, employee engagement, and sustainability.

• U.K. integration and restructuring faced challenges but are expected to improve performance in 2025.

Financial highlights

• Q4 adjusted net income: $133.9M; adjusted diluted EPS: $10.02 (up 5.5% YoY); reported diluted EPS: $7.08 (down 10.1% YoY) due to $33M in impairment charges.

• Full-year adjusted net income: $530.6M; adjusted diluted EPS: $39.21; reported diluted EPS: $36.72.

• Q4 gross profit: $879M (up 20% YoY); Q4 gross margin: 15.9%; full-year gross margin: 16.3%.

• Q4 new vehicle sales: $2.9B; parts and service: $680M; F&I: $226M—all quarterly records.

• Adjusted free cash flow for FY24: $504M; CapEx: $179M.

Outlook and guidance

• U.K. integration and restructuring expected to complete by Q1 2025, with performance improvements targeted.

• U.K. SG&A as a percent of gross expected to improve by at least 300 basis points in 2025.

• Continued investment in EV service capabilities, technology, and technician hiring in both U.S. and U.K.

• U.S. new vehicle affordability and demand remain healthy.