Group 1 Automotive (NYSE:GPI) Issues Quarterly Earnings Results

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

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

GPI stock traded down $17.32 during trading on Thursday, hitting $379.09. The stock had a trading volume of 105,688 shares, compared to its average volume of 155,673. Group 1 Automotive has a twelve month low of $355.91 and a twelve month high of $490.09. The company’s 50-day moving average price is $402.19 and its two-hundred day moving average price is $422.73. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.06 and a quick ratio of 0.25. The stock has a market capitalization of $4.79 billion, a P/E ratio of 13.26 and a beta of 0.89.

Group 1 Automotive Announces Dividend

The business 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 0.5%. The ex-dividend date of this dividend was Monday, December 1st. Group 1 Automotive’s dividend payout ratio (DPR) is presently 7.00%.

Group 1 Automotive declared that its Board of Directors has authorized a share buyback plan on Tuesday, November 11th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 10.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management 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: Company still delivered modest revenue growth (+0.6% YoY) and a strong return on equity (18.08%), showing underlying profitability despite the quarter’s headwinds. Group 1 Automotive Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Company released the earnings press release, slide deck and conference call materials for investors to review full details and management commentary. Listen to Conference Call / View Press Release / Slide Deck
• Neutral Sentiment: Analyst-focused pieces previewed and reviewed expectations and metrics for the quarter, offering context for possible estimate revisions after the print. These are useful for assessing whether sell‑side forecasts will shift. Should Value Investors Buy Group 1 Automotive (GPI) Stock?
• Negative Sentiment: Q4 EPS of $8.49 missed consensus ($9.36) and declined sharply from $10.02 a year earlier — a key driver of the stock drop as profitability weakened versus last year. Group 1 Automotive (GPI) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Revenue of $5.58B missed the consensus ~$5.71B, and outlets highlight that weaker new-car sales weighed on results — a demand indicator that could pressure near-term margins and guidance. Group 1 Automotive falls short of Q4 forecasts as new car sales weigh
• Negative Sentiment: Market write-ups and earnings snapshots emphasize the EPS and revenue misses and examine key metrics versus estimates — increasing the likelihood of downward estimate revisions and short-term selling pressure. Group 1 Automotive (GPI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Neutral Sentiment: Benzinga and regional coverage provide outlook discussion and context for how the quarter affects future earnings expectations — important for investors deciding whether the miss alters full‑year forecasts. Examining the Future: Group 1 Automotive’s Earnings Outlook
• Neutral Sentiment: Local business coverage offers a concise Q4 snapshot summarizing results, headwinds and management commentary for regional investor readers. Group 1 Automotive: Q4 Earnings Snapshot

Analyst Ratings Changes

GPI has been the subject of several recent research reports. Weiss Ratings cut Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Evercore ISI started coverage on shares of Group 1 Automotive in a research note on Tuesday, January 20th. They set an “outperform” rating and a $500.00 price objective on the stock. Morgan Stanley set a $460.00 target price on shares of Group 1 Automotive in a research note on Monday, December 8th. Barclays lowered their price target on shares of Group 1 Automotive from $510.00 to $490.00 and set an “overweight” rating on the stock in a report on Wednesday, January 21st. Finally, JPMorgan Chase & Co. cut their price objective on shares of Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $473.25.

Institutional Trading of Group 1 Automotive

Large investors have recently made changes to their positions in the company. CIBC Bancorp USA Inc. purchased a new position in Group 1 Automotive in the 3rd quarter valued at $588,000. Danske Bank A S acquired a new stake in shares of Group 1 Automotive in the third quarter valued at about $1,054,000. Harvest Investment Services LLC boosted its position in Group 1 Automotive by 119.9% during the third quarter. Harvest Investment Services LLC now owns 9,112 shares of the company’s stock worth $3,987,000 after acquiring an additional 4,968 shares during the last quarter. CANADA LIFE ASSURANCE Co boosted its position in Group 1 Automotive by 0.4% during the third quarter. CANADA LIFE ASSURANCE Co now owns 14,195 shares of the company’s stock worth $6,203,000 after acquiring an additional 50 shares during the last quarter. Finally, Caxton Associates LLP grew its stake in Group 1 Automotive by 5.9% during the 3rd quarter. Caxton Associates LLP now owns 5,466 shares of the company’s stock valued at $2,391,000 after acquiring an additional 304 shares in the last quarter. 99.92% of the stock is currently owned by hedge funds and other institutional investors.

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.