Group 1 Automotive Stock Earnings Reports

Group 1 Automotive reported solid Q1 2026 results with revenues of $5.4 billion, gross profit of $878 million and adjusted diluted EPS of $8.66. Weather cost Group 1 an estimated $7 million of gross profit (largely U.S. parts & service), and the company implemented a U.S.-focused cost reduction program in early April that it expects will remove approximately $50 million of annual SG&A expense (700 roles eliminated plus contract/vendor cuts). New vehicle GPUs in the U.S. remained strong (~$3,313 per unit), used vehicle PRUs showed sequential improvement despite sourcing challenges, and after-sales (parts & service) was a standout with same-store customer-pay gross profit up ~6% and technician headcount rising. Group 1 is expanding a virtual F&I model (installed in ~1/3 of U.S. stores doing ~20% of deals) that management says improves PRU, speed and F&I productivity. In the U.K., performance improved across several lines: same-store new volumes +2%, used volumes nearly +5%, after-sales gross profit +20% year-over-year, though U.K. SG&A was pressured by government-mandated national insurance and minimum wage increases (~$3 million headwind). The company continued disciplined capital allocation: divested underperforming/high-cost stores, acquired targeted U.K. dealerships, finalized a framework with Geely to open Geely franchise locations in Q2, and repurchased ~205k shares (1.7% outstanding) during the quarter. Liquidity remains solid ($714.3 million available), rent-adjusted leverage ~3.09x, and YTD adjusted operating cash flow ~$147 million (free cash flow ~$95 million). Management emphasized ongoing investments in AI, rebranding (50% of U.S. stores rebranded so far), technician hiring and after-sales capacity, while focusing on SG&A leverage and operating discipline as market conditions normalize.