Group 1 Automotive Inc, a Fortune 250 automotive retail company operating 254 dealerships across the United States and the United Kingdom, announced its financial performance for the fourth quarter and full fiscal year ended 2025.
Executive Commentary Daryl Kenningham, President and Chief Executive Officer of Group 1 Automotive, stated that the fourth quarter concluded a historic year for the Company. Total revenues reached $22.6 billion, reflecting a 13.2% increase compared to the prior year. Record revenue levels were achieved across all primary operating segments, alongside all-time highs in parts and service as well as finance and insurance gross profit. These results underscore the durability of Group 1’s diversified operating model and its continued emphasis on operational discipline.
Throughout 2025, the Company maintained a disciplined approach to capital deployment, including the repurchase of more than 10% of outstanding common shares. Through proactive portfolio optimization, Group 1 expanded shareholder value by acquiring high-performing Lexus and Acura dealerships in Fort Myers, along with Mercedes-Benz dealerships in South Austin and Buckhead, while exiting 13 underperforming locations.
Detailed reconciliations for GAAP and non-GAAP results, including diluted earnings per share from continuing and discontinued operations, are provided in the accompanying financial schedules.
Fourth Quarter 2025 Financial Summary
- Total revenue for the quarter was $5.6 billion, representing a 0.6% increase compared to the same period in 2024.
- Net income from continuing operations totaled $43.0 million, versus $94.6 million in the prior-year quarter.
- Adjusted net income from continuing operations (non-GAAP) was $105.0 million, compared with $133.9 million a year earlier.
- Diluted earnings per share from continuing operations were $3.47, down from $7.08 in the fourth quarter of 2024.
- Results for the quarter included $68.2 million in non-cash asset impairment charges, primarily related to the U.S. reporting unit.
- Adjusted diluted earnings per share (non-GAAP) amounted to $8.49, compared to $10.02 in the prior-year quarter.
- Annual revenue reached a record $22.6 billion, up 13.2% from $19.9 billion in 2024.
- Net income from continuing operations was $323.7 million, compared with $497.0 million in the prior year.
- Adjusted net income from continuing operations (non-GAAP) totaled $524.5 million, largely consistent with $530.6 million in 2024.
- Diluted earnings per share from continuing operations were $25.13, compared to $36.72 in the prior year.
- Full-year results included $192.8 million in non-cash impairment charges.
- Adjusted diluted earnings per share (non-GAAP) increased 3.8% year over year to $40.71, up from $39.21.
Corporate Development Activity During 2025, Group 1 acquired dealership operations expected to generate approximately $640 million in annual revenue, all of which were successfully integrated into existing operations. In the fourth quarter, the Company divested one Chrysler Jeep Dodge Ram dealership in the U.S. and closed several U.K. locations, including one Toyota, two BMW/MINI, and one Volkswagen dealership. Total annualized revenues associated with dispositions and franchise terminations during the year were approximately $775 million.
Share Repurchase Activity
- In the fourth quarter, Group 1 repurchased 755,792 shares at an average price of $403.60, totaling $305.0 million, excluding excise taxes.
- For the full year, the Company repurchased 1,343,229 shares, representing approximately 10.1% of shares outstanding as of January 1, 2025, at an average price of $413.05, for a total of $554.8 million, excluding excise taxes.
- As of December 31, 2025, the Company had 12.0 million shares outstanding, inclusive of unvested restricted stock awards, and $378.7 million remaining under its authorized share repurchase program.
Earnings Conference Call Information Group 1’s executive leadership will host a conference call at 10:00 a.m. ET to review fourth-quarter and full-year 2025 results. The call will be webcast live on the Company’s investor relations website, with a replay available for 30 days. Supporting presentation materials will also be posted online.
Company Overview Group 1 Automotive owns and operates 254 dealerships, 315 franchises, and 32 collision centers across the U.S. and U.K., representing 36 automotive brands. Through its physical locations and digital platforms, the Company sells new and pre-owned vehicles, provides financing solutions, offers service contracts, performs maintenance and repair services, and supplies automotive parts.
Forward-Looking Statements and Non-GAAP Measures This release includes forward-looking statements based on current expectations and assumptions regarding future business performance, economic conditions, and strategic initiatives. These statements involve inherent risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on such statements.
The Company also reports certain non-GAAP financial measures to provide additional insight into operational performance. These metrics exclude items not directly related to core operations and should be reviewed alongside the most comparable GAAP measures. Group 1 believes these measures enhance period-to-period comparability and support a clearer understanding of long-term trends.
