Group 1 Automotive Earnings Rise Despite Revenue Decline
Diluted earnings per common share from continuing operations rose to $10.82 in the first quarter of 2026
Group 1 Automotive (GPI), the automotive retailer, reported a rise in diluted earnings per common share despite a decline in total revenue and adjusted net income for the first quarter of 2026. The results reflect a period of portfolio adjustment and the implementation of cost-cutting measures to counter macroeconomic headwinds.
Total revenues for the quarter were $5.4 billion, a 1.8% decrease from $5.5 billion in the prior-year quarter. Adjusted net income from continuing operations fell to $104.0 million, down from $134.7 million in the first quarter of 2025. However, diluted earnings per common share from continuing operations rose to $10.82, an increase of $1.18 over the $9.64 reported in the same period last year.
Vehicle sales volumes trended lower across the board. Consolidated same-store new vehicle units sold decreased 5.2% year-over-year, while same-store used vehicle retail units sold fell 3.5%. The company also saw a 4.8% decline in consolidated same-store new vehicle gross profit per retail unit, which fell to $3,239.
Fixed operations provided a counterbalance to the decline in vehicle sales. Consolidated same-store parts and service gross profit grew 5.9% year-over-year to $384.4 million. Gross margin for that segment expanded 80 basis points to 56.8%. Additionally, consolidated same-store adjusted F&I gross profit per retail unit increased 2.7% to $2,035.
Regional performance varied, with the U.K. market reaching a record gross profit of $230.6 million, a 6.3% increase over the prior-year quarter. These gains occurred as the company adjusted its footprint, acquiring one Skoda and two Volkswagen dealerships in the U.K. while disposing of two Mercedes-Benz dealerships in California and two dealerships in the U.K.. The total dealership count decreased to 252 as of July 14, 2026.
Operating expenses rose as a percentage of gross profit, with adjusted SG&A expenses increasing 325 basis points to 72.2%. The company initiated cost actions in the U.S. and U.K., including reductions in staffing and discretionary expenses, to address macro challenges.
Group 1 Automotive continued its share reduction program, repurchasing approximately 1.7% of outstanding common shares for $72.4 million during the quarter. This followed a larger repurchase of 10.1% of shares during the full year 2025.