HOUSTON – October 29, 2026 -- Group 1 Automotive (NYSE: GPI) posted third-quarter diluted earnings per share from continuing operations of $8.59, up from $1.02 a year earlier. Adjusted diluted EPS, a non-GAAP measure, fell to $9.36 from $10.45 as the retailer closed a $1.7 billion-revenue Atlanta acquisition and pushed ahead with disposals to cut leverage.
Net income rises to $102.9 million while adjusted profit declines
Net income from continuing operations reached $102.9 million, compared with $13.1 million in the prior-year quarter. Adjusted net income from continuing operations fell to $112.1 million from $135.1 million. Total revenues were $5.4 billion, down from $5.8 billion.
Hennessy purchase lifts Atlanta footprint to 15 dealerships
Group 1 signed the Purchase and Sale Agreement for substantially all assets, including real estate, of Atlanta-based Hennessy Automobile Companies on July 30, 2026, and completed it on October 19. The deal adds 10 dealerships with expected annual revenues of about $1.7 billion. Year to date, the company has acquired 14 U.S. dealership operations with expected annual revenues of about $2 billion.
CEO Daryl Kenningham said the company is "deliberately reshaping" its portfolio toward larger, more profitable, premium-brand stores in growing markets.
Disposals bring $235 million in proceeds, with $125 million more under contract
Since quarter end, Group 1 has sold a Lexus, an Acura and a Honda dealership in the U.S., which generated about $305 million in annualized revenues, for proceeds of about $235 million. It has also signed agreements to sell four more U.S. dealerships, with about $235 million in annualized revenues, for expected proceeds of about $125 million. Combined proceeds would total about $360 million, earmarked to reduce leverage. Year-to-date U.S. dispositions represent about $505 million in annualized revenues.
U.S. same-store customer pay revenue climbs 3.2% as SG&A falls 6.0%
U.S. parts and service customer pay revenues were $305.5 million, up 0.6%. On a same-store basis they were $297.4 million, up 3.2% from $288.2 million. Management also cited all-time record U.S. customer pay revenues and repair order count, with same-store repair orders up 4%.
U.S. SG&A expenses fell 6.0% to $452.1 million. Adjusted SG&A fell 5.4% to $445.2 million. U.S. used vehicle gross profit per retail unit (GP PRU) was $1,527, down 0.2%, while same-store GP PRU rose 1.6% to $1,544.
U.K. same-store new vehicle sales jump 8.1% and used margins widen 15.7%
U.K. new vehicle retail units rose 1.9% to 15,984, and same-store units rose 8.1% to 15,467. Used vehicle retail GP PRU rose 15.7% to $1,437. U.K. parts and service revenues were $162.3 million, down 2.4%, but same-store revenues rose 6.4% to $159.7 million.
Group 1 reverses JLR exit and adds Chinese brands in the U.K.
The company agreed with Jaguar Land Rover to revoke its earlier election to terminate 10 JLR franchise agreements, which would have taken effect in August 2027. It will keep operating the five remaining JLR dealerships it had planned to exit.
Group 1 has opened two of three planned Geely locations in the U.K., with the third expected by December 2026. After quarter end, it agreed with Chery to open an Omoda & Jaecoo location, also due by December 2026. During the quarter it sold a Volkswagen and an Audi dealership in the U.K. with about $100 million in annualized revenues, taking year-to-date U.K. disposals to about $495 million. It has also acquired and integrated three U.K. dealership operations with expected annual revenues of about $135 million.
Buybacks pause in the quarter, with $306.3 million of authorization left
Group 1 repurchased no shares in the third quarter. Year to date it has bought back 205,190 shares, about 1.7% of shares outstanding at January 1, 2026, at an average of $353.08 for $72.4 million, excluding $0.5 million in excise taxes. As of September 30, 2026, 11,947,272 shares of common stock and unvested restricted stock awards were outstanding, and $306.3 million remained under the board authorization.