Group 1 Automotive Revenue Falls 6.7% to $5.4 Billion in Third Quarter
Key Facts
Group 1 Automotive reported revenue of $5.4 billion in the third quarter of 2026, down 6.7% from $5.8 billion a year earlier, according to its published financial results. Net income from continuing operations was $102.9 million, compared with $13.1 million in the same period of 2025. But adjusted net income from continuing operations fell to $112.1 million from $135.1 million, putting the jump in the unadjusted figure alongside a decline in the adjusted measure. Diluted earnings per share from continuing operations were $8.59, versus $1.02 a year earlier. Adjusted diluted earnings per share fell to $9.36 from $10.45, with results showing a divergence between reported and adjusted figures.
Revenue and adjusted earnings per share came in below analyst estimates: revenue was $5.4 billion versus an estimate of $5.64 billion, while adjusted earnings per share were $9.36 compared with an estimate of $9.80. On a same-store basis, revenue fell 2.8% year over year and gross profit declined 4.1%. Retail new-vehicle units fell 1.2%, and used-vehicle units declined 8.5%. These indicators reflect a contraction in sales and gross profit across the same-store base during the quarter. The chief executive said the company continues to benefit from cost-cutting measures taken earlier in the year, without the disclosure specifying expected annual savings.
In the United Kingdom, the chief executive pointed to resilient aftersales services and growth in some operating indicators, according to comments in the earnings announcement. These signals came as new- and used-vehicle sales declined on a same-store basis, with a steeper fall in used-vehicle units. The disclosure did not provide detailed figures for these UK indicators in the available data. The chief executive said the company continues to benefit from earlier cost-cutting measures, which were taken earlier in the year. This places management's focus on expense control in the context of declining revenue, without establishing that the cuts offset the fall in sales or gross profit.
As it reshapes its portfolio, Group 1 completed its acquisition of Hennessy on October 19, comprising 10 automotive dealerships and a collision center in the greater Atlanta area of Georgia. The company said the completed deal is expected to add approximately $1.7 billion in annual revenue. The acquisition comes as same-store revenue is declining, adding new activity to the group's overall business. After the quarter ended, the company completed U.S. asset dispositions with proceeds of approximately $235 million. It also has definitive agreements for further dispositions expected to generate $125 million, according to the earnings announcement.
Group 1 Automotive shares closed at $249.54 on October 28, 2026, down 1.83% for the session, according to market data. The close coincided with the release of results showing revenue and adjusted earnings per share below expectations, alongside an annual decline in same-store revenue. The stock had closed at the same level, $249.54, according to EL7 data for that day. The move shows the stock's reaction during the announcement session, while the available information does not include further details on after-hours trading. Investing.com's calendar lists February 4, 2027, as the date for the company's next results.