Group 1 Automotive (NYSE:GPI) Issues Earnings Results

Group 1 Automotive (NYSE:GPI) announced its earnings results on Thursday. The company reported $9.61 earnings per share for the quarter, missing analysts’ consensus estimates of $10.60 by ($0.99), FiscalAI reports. The company had revenue of $5.39 billion for the quarter, compared to analysts’ expectations of $5.66 billion. Group 1 Automotive had a net margin of 1.46% and a return on equity of 16.63%. Group 1 Automotive’s quarterly revenue was down 5.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $10.82 earnings per share.

Here are the key takeaways from Group 1 Automotive’s conference call:

• Challenging U.S. quarter: Q2 revenue was $5.4 billion and adjusted EPS was $9.61, but U.S. new- and used-vehicle volumes declined amid affordability pressures, limited used-vehicle sourcing, inventory issues, and temporary disruption from store rebranding.
• Hennessy acquisition expands Atlanta presence: Group 1 agreed to acquire 10 dealerships for approximately $1.3 billion, increasing its Atlanta footprint from three to 15 stores. The company expects the transaction to be immediately EPS-accretive, with the dealerships generating about $1.7 billion in annual revenue and EBITDA margins above 7%.
• Significant cost reductions were completed: U.S. operations exceeded their target of eliminating 700 positions and $50 million in annual expenses. Management expects approximately $12.5 million of quarterly savings in the second half of 2026, flowing into 2027.
• After-sales remains resilient but faces changing customer behavior: Same-store U.S. customer-pay revenue rose 4%, while warranty revenue increased 1%, despite difficult comparisons and a shift toward aftermarket providers as more vehicles leave factory warranty. Group 1 is emphasizing service-advisor training, lower-cost promotions, and its One Care maintenance plan to improve retention.
• Leverage will temporarily increase: The Hennessy purchase is expected to lift rent-adjusted leverage to just under 4 times from 3.3 times at quarter-end. Management plans to use debt financing and planned dispositions to return leverage to its target level by mid-to-late 2027, and does not expect to repurchase shares before the acquisition closes.

Group 1 Automotive Price Performance

Shares of Group 1 Automotive stock opened at $296.92 on Friday. Group 1 Automotive has a one year low of $279.10 and a one year high of $488.39. The stock’s fifty day moving average is $314.34 and its 200 day moving average is $331.68. The stock has a market cap of $3.53 billion, a P/E ratio of 11.34, a P/E/G ratio of 0.95 and a beta of 0.83. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.21 and a current ratio of 0.95.

Group 1 Automotive Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, June 1st. Group 1 Automotive’s dividend payout ratio is 8.40%.

Analyst Ratings Changes

GPI has been the subject of several research analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Group 1 Automotive in a report on Friday, June 12th. DA Davidson set a $425.00 target price on Group 1 Automotive in a report on Friday, July 10th. Citigroup raised their target price on Group 1 Automotive from $420.00 to $462.00 and gave the stock a “buy” rating in a research report on Monday, May 11th. UBS Group cut their price target on Group 1 Automotive from $338.00 to $330.00 and set a “neutral” rating for the company in a research note on Friday, July 10th. Finally, Barclays reduced their price target on shares of Group 1 Automotive from $470.00 to $435.00 and set an “overweight” rating for the company in a research report on Wednesday, July 15th. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Group 1 Automotive currently has an average rating of “Moderate Buy” and an average price target of $426.89.

More Group 1 Automotive News

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Group 1 agreed to acquire 10 Hennessy Automobile Companies dealerships and related real estate in the Atlanta market. The transaction is expected to add approximately $1.7 billion in annualized revenue and be immediately accretive to earnings per share after closing, while strengthening the company’s dealership-cluster strategy. The deal remains subject to approvals and customary closing conditions. Group 1 Agrees to Acquire Hennessy Automobile Dealerships
• Positive Sentiment: The company completed a U.S. expense-reduction initiative expected to produce approximately $50 million in annualized savings. Management also expanded its Atlanta presence through two additional dealership acquisitions during the quarter, potentially improving scale over time. Group 1 Automotive Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Management’s earnings presentation and call provide additional detail on the quarter, cost actions and acquisition strategy, but the near-term benefit of the Hennessy transaction depends on regulatory approval and completion. Group 1 Automotive 2026 Q2 Results Presentation
• Negative Sentiment: Second-quarter earnings came in at $9.61 per share, below consensus estimates of roughly $10.60–$10.79, while revenue of $5.39 billion missed expectations of $5.66 billion. Revenue fell 5.6% year over year, and earnings declined from the prior-year quarter as consumers reduced spending. Group 1 Automotive Q2 Earnings and Revenues Miss Estimates

Institutional Trading of Group 1 Automotive

Hedge funds have recently bought and sold shares of the stock. Franklin Resources Inc. raised its stake in shares of Group 1 Automotive by 968.8% in the third quarter. Franklin Resources Inc. now owns 84,412 shares of the company’s stock worth $36,931,000 after buying an additional 76,514 shares during the period. Man Group plc purchased a new position in shares of Group 1 Automotive during the 2nd quarter valued at about $17,959,000. Millennium Management LLC grew its stake in shares of Group 1 Automotive by 172.3% during the 4th quarter. Millennium Management LLC now owns 57,102 shares of the company’s stock valued at $22,458,000 after acquiring an additional 36,131 shares during the period. Woodline Partners LP grew its stake in shares of Group 1 Automotive by 48.2% during the 3rd quarter. Woodline Partners LP now owns 101,369 shares of the company’s stock valued at $44,350,000 after acquiring an additional 32,968 shares during the period. Finally, Voloridge Investment Management LLC increased its holdings in Group 1 Automotive by 118.8% in the 4th quarter. Voloridge Investment Management LLC now owns 47,760 shares of the company’s stock worth $18,784,000 after acquiring an additional 25,932 shares in the last quarter. Institutional investors own 99.92% of the company’s stock.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc (NYSE: GPI) is an international automotive retailer headquartered in Houston, Texas. The company operates an extensive network of franchised dealerships, offering new and pre-owned vehicles from leading domestic and import manufacturers. In addition to vehicle sales, Group 1 Automotive provides a full complement of aftersales services, including finance and insurance products, parts distribution, collision repair centers and vehicle maintenance.

Founded in 1997, Group 1 Automotive has grown through both organic expansion and strategic acquisitions to establish a presence across the United States, the United Kingdom and Brazil.