Group 1 Automotive, Inc. (NYSE:GPI) reported fourth-quarter adjusted earnings below market expectations on Thursday, reflecting ongoing pressure in its new vehicle business, sending shares lower in premarket trading.
The automotive retailer’s stock slipped 1.62% after the results. Group 1 posted adjusted earnings per share of $8.49 for the quarter, missing the analyst consensus of $9.38. Revenue totaled $5.6 billion, slightly below expectations of $5.67 billion, though still marking a 0.6% increase compared with the same period last year.
Performance in new vehicle retail was a key drag. Revenue from new vehicle sales fell 3.2% to $2.77 billion, while unit volumes declined 5% year on year. Gross profit per new vehicle also came under pressure, dropping 7% to $3,294 per unit.
“The fourth quarter capped off a record year for Group 1,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer. “Our revenues totaled $22.6 billion, up 13.2% year over year. We achieved record revenues across all of our major business lines and record gross profits in parts and service and F&I, showing the continued strength and resilience of our diversified business model.”
Despite the quarterly miss, the company delivered strong full-year results. Group 1 reported 2025 revenue of $22.6 billion, up 13.2% from 2024, while parts and service gross profit reached a record $1.6 billion for the year, representing a 15.9% increase.
During 2025, the group actively reshaped its footprint, acquiring dealership operations expected to generate around $640 million in annual revenue, while exiting underperforming locations. Group 1 also returned capital to shareholders, repurchasing approximately 10.1% of its outstanding common shares over the year.
Results in the UK business were mixed. The company recorded $8.1 million in restructuring charges in the fourth quarter related to a UK-wide restructuring programme announced in October 2025. For the full year, restructuring charges in the UK totaled $28.4 million, with further actions planned for 2026.