Group 1 Automotive (NYSE:GPI) Releases Earnings Results, Misses Expectations By $0.87 EPS

Group 1 Automotive (NYSE:GPI) issued its quarterly earnings results on Thursday. The company reported $8.49 EPS for the quarter, missing analysts’ consensus estimates of $9.36 by ($0.87), FiscalAI reports. The business had revenue of $5.58 billion for the quarter, compared to the consensus estimate of $5.71 billion. Group 1 Automotive had a return on equity of 18.08% and a net margin of 1.67%.The business’s revenue was up .6% compared to the same quarter last year. During the same quarter last year, the business posted $10.02 earnings per share.

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 Price Performance

Group 1 Automotive stock traded down $7.14 during midday trading on Friday, hitting $356.02. 122,308 shares of the company’s stock were exchanged, compared to its average volume of 167,800. The company has a market cap of $4.50 billion, a P/E ratio of 12.46 and a beta of 0.89. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.25 and a current ratio of 1.06. The stock has a 50-day moving average price of $401.69 and a two-hundred day moving average price of $422.31. Group 1 Automotive has a 52-week low of $353.21 and a 52-week high of $490.09.

Group 1 Automotive Announces Dividend

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Johnson Financial Group Inc. bought a new position in shares of Group 1 Automotive in the 3rd quarter worth $55,000. Sherbrooke Park Advisers LLC bought a new position in Group 1 Automotive in the third quarter valued at $206,000. NewEdge Advisors LLC raised its position in Group 1 Automotive by 6.1% during the second quarter. NewEdge Advisors LLC now owns 471 shares of the company’s stock valued at $206,000 after purchasing an additional 27 shares in the last quarter. Boothbay Fund Management LLC purchased a new stake in Group 1 Automotive during the third quarter valued at about $223,000. Finally, Dynamic Technology Lab Private Ltd bought a new stake in Group 1 Automotive during the first quarter worth about $229,000. 99.92% of the stock is currently owned by institutional investors.

Group 1 Automotive announced that its Board of Directors has initiated a share buyback program on Tuesday, November 11th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 10.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Key Headlines Impacting Group 1 Automotive

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

• Positive Sentiment: Management told investors acquisitions should add roughly $640M of revenue and highlighted a record ~$3.6B gross profit, signaling meaningful scale and margin support if integrations succeed. Group 1 Automotive outlines $640M revenue boost from acquisitions amid UK restructuring and record $3.6B gross profit
• Positive Sentiment: Several analysts have been revising earnings estimates upward and technical indicators show GPI as oversold (Zacks argues this could presage a trend reversal), which can attract buyers if execution remains intact. Group 1 Automotive (GPI) Loses 7.7% in 4 Weeks, Here’s Why a Trend Reversal May be Around the Corner
• Neutral Sentiment: Earnings call and management commentary emphasized record revenues and strategic priorities (restructuring in the U.K., integrations); read the call highlights for color on guidance and capital allocation. Group 1 Automotive Inc (GPI) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Full press release, slide deck and call transcript are available for detailed modeling — useful for checking assumptions on margins, interest expense and acquisition synergies. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: GPI missed estimates: Q4 EPS $8.49 vs. $9.36 consensus and revenue $5.58B vs. $5.71B estimate; EPS fell year-over-year from $10.02 — the misses are driving near-term downside as investors digest margin and volume pressure. Group 1 Automotive (GPI) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: New-car sales weakness was singled out as a drag on results, increasing investor concern about near-term top-line momentum in core dealerships. Group 1 Automotive falls short of Q4 forecasts as new-car sales weigh

Analysts Set New Price Targets

Several analysts have commented on GPI shares. Evercore ISI initiated coverage on shares of Group 1 Automotive in a research report on Tuesday, January 20th. They issued an “outperform” rating and a $500.00 price objective on the stock. Barclays decreased their target price on 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. Morgan Stanley set a $460.00 price target on Group 1 Automotive in a research report on Monday, December 8th. Benchmark reissued a “hold” rating on shares of Group 1 Automotive in a report on Friday, January 9th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus 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.