Group 1 Automotive Reports Record 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Revenue Growth: Group 1 Automotive achieved total revenues of $22.6 billion for FY 2025, marking a 13.2% year-over-year increase, demonstrating strong performance across all business lines and reinforcing its market position.
- Gross Profit Increase: The company reported gross profits of $3.6 billion for FY 2025, an 11.8% increase, with parts and service gross profit reaching a record $1.6 billion, indicating ongoing growth potential in the service sector.
- Share Repurchase: In FY 2025, Group 1 repurchased approximately 10.1% of its outstanding shares, reflecting its commitment to enhancing shareholder value and driving returns through disciplined capital allocation.
- Quarterly Performance Volatility: The net income for Q4 2025 was $43 million, a 54.6% decline year-over-year, primarily due to non-cash asset impairment charges, highlighting challenges faced by the company amid market fluctuations.
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Analyst Views on GPI
Wall Street analysts forecast GPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GPI is 481.25 USD with a low forecast of 435.00 USD and a high forecast of 510.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 396.960
Low
435.00
Averages
481.25
High
510.00
Current: 396.960
Low
435.00
Averages
481.25
High
510.00
About GPI
Group 1 Automotive, Inc. is an automotive retailer. It operates through two segments: the U.S. and the U.K. Through its dealerships and omnichannel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. It owns and operates about 263 automotive dealerships, 335 franchises, and 39 collision centers in the United States and the United Kingdom that offer 35 brands of automobiles. It sells retail used vehicles directly to its customers at its dealerships and via AcceleRide and wholesale its used vehicles at third-party auctions. Its operations are located in areas including Texas, Massachusetts, Oklahoma, California, Georgia, New Mexico, Maine, New Jersey, New Hampshire, Florida, South Carolina, Louisiana, Kansas, New York, Maryland, and others. It also offers third-party finance, vehicle service, and insurance products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Group 1 Automotive to Announce Q4 Earnings on January 29
- Earnings Announcement Date: Group 1 Automotive is set to release its Q4 earnings on January 29 before market open, with consensus EPS estimated at $9.38, reflecting a 6.4% year-over-year decline, while revenue is projected at $5.67 billion, indicating a 3.1% year-over-year increase, showcasing the company's resilience amid market fluctuations.
- Historical Performance: Over the past two years, Group 1 Automotive has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's reliability and execution in financial forecasting.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with five downward adjustments, while revenue estimates saw three upward revisions and two downward, reflecting a cautious market outlook on the company's future performance.
- Shareholder Return Measures: Group 1 Automotive declared a $0.50 dividend per share and approved a new stock buyback plan, aimed at enhancing shareholder value and boosting market confidence.
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Group 1 Automotive Reports Higher Q4 Net Income
- Net Income Decline: Group 1 Automotive reported a net income of $43.1 million for Q4, down from $92.9 million last year, despite a slight revenue increase to $5.58 billion, indicating a significant drop in profitability.
- Earnings Per Share Drop: The company's earnings per share fell to $3.47 from $7.08 last year, missing analysts' expectations of $9.38, raising concerns about its financial health and market competitiveness.
- Operating Income Reduction: Operating income decreased to $139.3 million from $193.7 million year-over-year, highlighting challenges in cost management and operational efficiency that could impact future investment decisions.
- Market Reaction: In pre-market trading, Group 1 Automotive's stock price fell by 0.11% to $395.99 on the New York Stock Exchange, reflecting investor caution regarding the company's financial performance.
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