Group 1 Automotive (NYSE:GPI) Issues Earnings Results

Group 1 Automotive (NYSE:GPI) posted its quarterly earnings data on Thursday. The company reported $8.49 earnings per share for the quarter, missing the consensus estimate of $9.36 by ($0.87), FiscalAI reports. Group 1 Automotive had a return on equity of 17.00% and a net margin of 1.44%.The firm had revenue of $5.58 billion for the quarter, compared to analyst estimates of $5.71 billion. During the same period in the previous year, the business posted $10.02 EPS. The business’s quarterly revenue was up .6% on a year-over-year basis.

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

• Group 1 reported record 2025 results, including all‑time high gross profit of more than $3.6 billion, record parts & service gross profit (~$1.6 billion), and a record 459,000 vehicles sold.
• Strong U.S. performance and liquidity — Q4 revenue of $5.6 billion, adjusted EPS of $8.49, ~ $494 million free cash flow in 2025, and management repurchased >10% of shares while maintaining ~$883 million in total liquidity.
• The U.K. remains a material headwind from weak growth, inflation, increased Chinese OEM competition and BEV margin pressure, prompting disposals, impairments, ongoing restructuring and a 537‑headcount reduction that continue to weigh on near‑term results.
• Management is driving productivity initiatives (AI, virtual F&I, technician retention/shop investments) and targets long‑run SG&A around ~80% of GP in the U.K. and mid‑to‑high‑60s% in the U.S., while aiming to reduce leverage below 3.0x.

Group 1 Automotive Stock Down 2.3%

Shares of NYSE GPI opened at $354.80 on Friday. The firm has a market capitalization of $4.48 billion, a PE ratio of 14.19 and a beta of 0.89. The company has a current ratio of 1.06, a quick ratio of 0.25 and a debt-to-equity ratio of 1.06. Group 1 Automotive has a 1 year low of $351.27 and a 1 year high of $490.09. The firm’s 50-day moving average is $400.80 and its 200-day moving average is $421.43.

Group 1 Automotive Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, December 1st. Group 1 Automotive’s payout ratio is currently 7.00%.

Hedge Funds Weigh In On Group 1 Automotive

Several large investors have recently bought and sold shares of the business. NewEdge Advisors LLC grew its holdings in Group 1 Automotive by 6.1% during the 2nd quarter. NewEdge Advisors LLC now owns 471 shares of the company’s stock worth $206,000 after acquiring an additional 27 shares during the period. Evergreen Capital Management LLC grew its stake in shares of Group 1 Automotive by 3.3% during the second quarter. Evergreen Capital Management LLC now owns 1,156 shares of the company’s stock worth $505,000 after purchasing an additional 37 shares during the period. Lido Advisors LLC increased its holdings in Group 1 Automotive by 4.9% in the third quarter. Lido Advisors LLC now owns 904 shares of the company’s stock valued at $396,000 after purchasing an additional 42 shares during the last quarter. CANADA LIFE ASSURANCE Co lifted its stake in Group 1 Automotive by 0.4% in the third quarter. CANADA LIFE ASSURANCE Co now owns 14,195 shares of the company’s stock valued at $6,203,000 after buying an additional 50 shares during the period. Finally, Brevan Howard Capital Management LP lifted its stake in Group 1 Automotive by 1.9% in the second quarter. Brevan Howard Capital Management LP now owns 3,602 shares of the company’s stock valued at $1,573,000 after buying an additional 66 shares during the period. 99.92% of the stock is currently owned by institutional investors and hedge funds.

Group 1 Automotive declared that its board has initiated a share repurchase plan on Tuesday, November 11th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 10.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

More Group 1 Automotive News

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

• Positive Sentiment: Analysts and commentators point to above‑average financial growth and a longer‑term upside thesis for Group 1 based on margin recovery and scale benefits, which could support a rebound if execution continues. Is Group 1 Automotive (GPI) a Solid Growth Stock? 3 Reasons to Think “Yes”
• Positive Sentiment: Management highlighted a roughly $640M revenue lift from recent acquisitions and a record ~$3.6B gross profit, suggesting acquisitions and parts/service/used-vehicle strength are propping revenue and profitability long term. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Positive Sentiment: Technical analysis flags GPI as oversold after recent selling, and some notes point to analysts revising estimates higher — a setup that could produce a short‑term trend reversal if fundamentals stabilize. Group 1 Automotive (GPI) Loses 7.7% in 4 Weeks, Here’s Why a Trend Reversal May be Around the Corner
• Neutral Sentiment: Company earnings call and slide deck provide detail on strategy, UK restructuring and margin initiatives — useful for investors but not an immediate market mover absent updated guidance. Group 1 Automotive Inc (GPI) Q4 2025 Earnings Call Highlights: Record Revenues and Strategic …
• Neutral Sentiment: Full quarterly report and PR materials are available for deeper review of segment performance and cash/debt position. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Core near‑term negative: Q4 EPS of $8.49 missed consensus ($9.36) and revenue of $5.58B missed estimates (~$5.71B); EPS is materially down from $10.02 a year ago — this earnings miss is the primary driver of today’s sell‑off. Group 1 Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: New‑vehicle sales weakness weighed on results and commentary; several outlets flagged that slower new car sales diluted overall margins despite gains in used vehicles and parts/service. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on GPI. JPMorgan Chase & Co. dropped their price target on Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Weiss Ratings cut Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Morgan Stanley set a $460.00 price target on Group 1 Automotive in a report on Monday, December 8th. Evercore ISI assumed coverage on shares of Group 1 Automotive in a report on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price objective on the stock. Finally, Barclays lowered their price objective on shares of Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating for the company in a research report on Wednesday, January 21st. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Group 1 Automotive has a consensus rating of “Moderate Buy” and an average target price of $475.14.

About Group 1 Automotive

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.