Group 1 Automotive Reports 21.4% Revenue Growth to $5.7 Billion in Latest Quarter

Group 1 Automotive, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $5.7 billion for the three months ended June 30, 2025, a 21.4% increase from $4.7 billion in the same period last year. The company’s net income also saw a slight rise, totaling $140.5 million compared to $138.2 million in the prior year, resulting in diluted earnings per share of $10.82, up from $10.17. This performance was bolstered by strong sales in both new and used vehicles, with new vehicle retail sales increasing by 15.7% to $2.7 billion and used vehicle retail sales rising by 27.2% to $1.8 billion.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Retail new vehicle units sold increased by 17.0% to 55,763, while retail used vehicles sold surged by 22.3% to 60,240. The gross profit for the quarter also improved, reaching $935.8 million, a 22.1% increase from $766.5 million in the prior year. However, selling, general, and administrative (SG&A) expenses rose significantly, up 29.9% to $646.1 million, reflecting increased costs associated with acquisitions and operational expansions.

Strategically, Group 1 Automotive completed the acquisition of Inchcape Retail operations in the U.K. for approximately $517 million, which included 54 dealership locations and several collision centers. This acquisition is expected to enhance the company’s market presence in the U.K. Additionally, the company acquired three dealerships in the U.S. and four in the U.K. during the first half of 2025, further expanding its footprint in key markets. The company’s total dealership count now stands at 145 in the U.S. and 113 in the U.K.

Operationally, Group 1 Automotive reported a total employee headcount of 12,939 as of June 30, 2025, reflecting its growth strategy. The company also noted a geographic expansion, with increased revenues from both U.S. and U.K. operations. The U.K. segment saw revenues nearly double to $1.5 billion, driven by strong performance in used vehicle sales and parts and service revenues. The company’s focus on enhancing customer service capabilities, particularly in the U.K., has contributed to improved engagement metrics and customer satisfaction.

Looking ahead, Group 1 Automotive remains optimistic about its growth trajectory, despite potential challenges from changing market conditions and regulatory environments. The company is closely monitoring the impacts of recent trade policies and tariffs, particularly those affecting the automotive industry. Management anticipates that ongoing strategic initiatives, including further acquisitions and operational efficiencies, will continue to drive revenue growth and profitability in the coming quarters.