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

Group 1 Automotive (NYSE:GPI) released its earnings results 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. Group 1 Automotive had a net margin of 1.67% and a return on equity of 18.08%. The firm had revenue of $5.58 billion for the quarter, compared to analysts’ expectations of $5.71 billion. During the same quarter last year, the firm posted $10.02 EPS. The firm’s quarterly revenue was up .6% compared to the same quarter last year.

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 Trading Down 5.3%

Shares of NYSE:GPI traded down $21.18 during trading on Thursday, hitting $375.23. The company had a trading volume of 85,290 shares, compared to its average volume of 152,488. The stock has a market cap of $4.74 billion, a price-to-earnings ratio of 13.13 and a beta of 0.89. The company has a fifty day simple moving average of $402.19 and a two-hundred day simple moving average of $422.73. Group 1 Automotive has a one year low of $355.91 and a one year high of $490.09. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.06 and a quick ratio of 0.25.

Group 1 Automotive Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were given a dividend of $0.50 per share. The ex-dividend date was Monday, December 1st. This represents a $2.00 annualized dividend and a yield of 0.5%. Group 1 Automotive’s dividend payout ratio (DPR) is 7.00%.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on GPI shares. JPMorgan Chase & Co. dropped their price objective on Group 1 Automotive from $435.00 to $410.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Evercore ISI started 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 for the company. Weiss Ratings downgraded shares of Group 1 Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, December 29th. Barclays dropped their target price 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. Finally, Morgan Stanley set a $460.00 price target on shares of Group 1 Automotive in a report on Monday, December 8th. Five analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Group 1 Automotive presently has a consensus rating of “Hold” and an average price target of $473.25.

Group 1 Automotive announced that its Board of Directors has initiated a stock 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 often a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of GPI. Franklin Resources Inc. raised its holdings in shares of Group 1 Automotive by 968.8% in the third quarter. Franklin Resources Inc. now owns 84,412 shares of the company’s stock worth $36,931,000 after buying an additional 76,514 shares during the period. Man Group plc bought a new position in shares of Group 1 Automotive in the second quarter worth about $17,959,000. Woodline Partners LP increased its stake in Group 1 Automotive by 48.2% in the 3rd quarter. Woodline Partners LP now owns 101,369 shares of the company’s stock worth $44,350,000 after buying an additional 32,968 shares during the period. California Public Employees Retirement System bought a new stake in Group 1 Automotive during the 3rd quarter valued at about $7,779,000. Finally, Voloridge Investment Management LLC lifted its holdings in Group 1 Automotive by 179.2% during the 3rd quarter. Voloridge Investment Management LLC now owns 21,828 shares of the company’s stock valued at $9,550,000 after buying an additional 14,010 shares in the last quarter. Hedge funds and other institutional investors own 99.92% of the company’s stock.

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.