Group 1 Automotive (GPI) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 6.7% YoY to $5.397B; continuing-operations net income was $102.9M and diluted EPS was $8.59, versus $13.0M and $1.00 in Q3 2025.

• Adjusted continuing-operations net income was $112.1M and adjusted diluted EPS was $9.36, down from $135.1M and $10.45 YoY.

• U.S. same-store results weakened while U.K. same-store revenue and gross profit increased on a constant-currency basis.

• The Oct. 19 Hennessy acquisition added 10 dealerships in Greater Atlanta; planned dispositions are intended to support deleveraging.

Financial highlights

• Revenue was $5,396.7M, down 6.7% reported; gross profit was $854.8M, down 7.1%.

• Operating income increased to $200.7M from $107.8M as asset impairments fell to $7.0M from $123.9M.

• Nine-month revenue fell 4.7% to $16.189B; continuing-operations net income rose 19.6% to $335.7M.

Outlook and guidance

• Planned dispositions represent $1.1B–$1.2B in annualized revenue; proceeds are intended to reduce leverage toward a ~3x target range.

• Hennessy and planned dispositions are expected to lift adjusted EBITDA margin ~30 bps and reduce SG&A as a share of gross profit ~100 bps.

• Buybacks are expected to resume as rent-adjusted leverage approaches the target range.

• A third Geely U.K. location and an Omoda & Jaecoo location were expected to open by Dec. 2026.