Group 1 Automotive (NYSE:GPI) delivered standout second-quarter results on Wednesday, with adjusted earnings per share hitting $11.52—well ahead of Wall Street’s expectations of $10.47. The auto retailer also reported $5.7 billion in revenue, topping the $5.62 billion analysts had anticipated.
The quarter marked a new high for both revenue and gross profit. Total revenue climbed 21.4% year-over-year, while gross profit rose 22.1% to reach $935.8 million. Adjusted EPS surged 17.5% compared to the same period a year ago.
Parts and service operations were particularly strong, generating $402.8 million in gross profit—a 27.1% increase. On a same-store basis, gross profit in this segment advanced 14.0%, with customer pay revenue rising by more than 13.6% in both the U.S. and U.K.
“We were pleased with our growth in the second quarter. Same store revenues increased 7.1%. Parts and service was a bright spot in both markets, driven by double digit same store growth in customer pay and a tailwind from warranty,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer.
New vehicle retail sales reached 55,763 units—a 17.0% increase—while used vehicle sales grew even faster, up 22.3% to 60,240 units. Finance and insurance revenues also moved higher, jumping 18.8% to $237.8 million.
Group 1 continued expanding its U.S. footprint during the quarter, acquiring three new dealerships expected to contribute around $330 million in annual revenue. The company also repurchased 114,918 shares as part of its ongoing buyback strategy, spending $44.5 million at an average price of $387.39 per share.
Despite ongoing challenges in the U.K. auto market, including volume and margin headwinds, management expressed optimism for the months ahead. The company plans to maintain a balanced growth approach while continuing with targeted share repurchases and evaluating the performance of underachieving stores.
Group 1 Automotive stock price
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