Group 1 Automotive Reports 23.1% Revenue Growth to $5.51 Billion in Q1 2025

Group 1 Automotive, Inc. reported significant financial results for the first quarter of 2025, with total revenues reaching $5.51 billion, a 23.1% increase from $4.47 billion in the same period of 2024. The company’s net income was $128.1 million, down from $147.9 million year-over-year, resulting in diluted earnings per share of $9.67 compared to $10.80 in the prior year. The decline in profitability was attributed to increased selling, general, and administrative (SG&A) expenses, which rose by 29.6% to $617.3 million, reflecting higher costs associated with acquisitions and operational expansions.

The company experienced notable growth in its vehicle sales, with new vehicle retail sales increasing by 22.8% to $2.68 billion and used vehicle retail sales rising by 23.9% to $1.76 billion. The U.K. segment showed particularly strong performance, with total revenues increasing by 92.0% to $1.58 billion, driven by the acquisition of additional dealerships and improved same-store sales. The company’s U.S. operations also reported a 7.6% revenue increase, highlighting the resilience of demand in the automotive market.

Strategically, Group 1 completed the acquisition of Inchcape Retail operations in the U.K. for approximately $517 million, which included 54 dealership locations. This acquisition is expected to enhance the company’s market presence and operational efficiency in the region. Additionally, the company acquired four dealerships in the U.K. during the quarter, further expanding its footprint. The integration of these acquisitions is part of a broader strategy to enhance operational capabilities and improve customer service.

Operationally, Group 1 reported a total of 12,934,719 shares of common stock outstanding as of April 22, 2025. The company’s workforce has been adjusted in line with its restructuring plan, which aims to streamline operations following the Inchcape acquisition. The restructuring plan is expected to incur additional charges of approximately $2.6 million throughout 2025. The company also noted a decrease in its inventory levels, which fell by $182.8 million, indicating improved inventory management and sales efficiency.

Looking ahead, Group 1 remains cautious about potential impacts from recent trade policies, including tariffs on imported automobiles and parts, which could affect pricing and demand. The company anticipates that these factors, along with ongoing economic conditions, will influence its operational performance in the coming quarters. Despite these challenges, Group 1 is focused on leveraging its acquisitions and operational improvements to drive future growth and profitability.