Group 1 Automotive Inc

Group 1 Automotive runs car dealerships in the US and the UK. It sells and leases new and used cars and light trucks, arranges loans for buyers, sells service contracts and insurance products, repairs and maintains vehicles, and sells parts to shoppers and other businesses. As of December 31, 2025, it had 145 dealerships and 21 collision (body repair) centers across 17 US states, plus 109 dealerships and 11 collision centers in the UK.

Revenue was $22.57 billion in 2025. New vehicle sales made up 48.7%, used vehicle retail sales 31.9%, parts and service 12.6%, and finance and insurance (F&I) 4.1%. F&I is mostly fees for arranging loans and selling add-on contracts when a car is sold. Margins are thin: net profit was about 1.4 cents per dollar of sales. The company calls parts and service the core of its model, a steadier business when car sales slow.

The US produced 73.7% of revenue and the UK 26.3%. Texas alone accounted for 31.6% of new vehicles sold. Each dealership operates under a franchise agreement, a non-exclusive right to offer a carmaker's vehicles, parts and service in an area. In the UK, some brands have moved to an agency model, where the dealer earns a fee rather than booking the car's full price as revenue.

• In Q3 FY2026 (ended Sep 30, 2026), revenue was $5.40B, down 6.7% from a year earlier, and net income was $102.9M (+691.5%).
• For fiscal 2025, revenue was $22.57B (+13.2% year over year; +16.3% a year from FY2020 to FY2025) with a 1.4% net margin.

• Over FY2021–FY2025: $1.62B in buybacks and $123.6M in dividends.
• Regular dividend per share increased 5 years in a row.
• Regular dividends per share grew +27.2% a year over 5 years (FY2020–FY2025).
• Dividends took 7.9% of earnings and 6% of free cash flow in the latest fiscal year.
• Shares outstanding changed -34.0% from Oct 29, 2021 to Oct 23, 2026.

Rank among 1514 US companies

Market value at each year end

Group 1 Automotive’s market value went from $1.67B at the end of 2016 to $2.98B on Oct 28, 2026, up 79%; since the end of 2025 it is down 40%.

Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 134 open-market purchases ($211.5M) and 2 sales ($660K).

Large shareholders (13G filings)

ETFs with the most weight in GPI

1. Carmakers control the franchise agreements. Each dealership needs a carmaker's franchise, a non-exclusive right that can be ended for weak sales or poor customer satisfaction. Many UK agreements run on two-year rolling terms, and losing one could hurt results.
2. Carmakers could bypass dealers. Some electric vehicle makers skip dealers and handle sales online, and some of Group 1's carmaker partners are considering it. Certain UK makers already use agency deals that pay dealers a fee per car.
3. Heavy reliance on Texas. Results depend on regional economies where Group 1 operates, and Texas made up 31.6% of new vehicles sold in 2025. A local slump or natural disaster there could hit a large share of sales.
4. UK electric-car targets weigh on sales. UK rules set rising targets for zero-emission new car sales, and the UK produced 26.3% of 2025 revenue. The company expected higher targets for 2026 to further challenge new vehicle sales.
5. Growth relies on acquiring dealerships. Acquisitions are central to Group 1's growth plan and need carmakers to grant new franchises. Weak deals or poor integration could slow earnings and force write-downs of goodwill, the premium paid over asset value.
6. Interest rates hit buyers and borrowing costs. Many buyers finance their cars, so higher rates or tighter credit can cut sales and raise Group 1's interest costs. It owed $3.37 billion against $164.5 million of cash at June 30, 2026.

• Oct 28, 2026 Quarterly results released
• Oct 21, 2026 Acquisition or sale of assets completed
• Sep 24, 2026 Major agreement signed; New debt or financial obligation
• Sep 22, 2026 Major agreement signed; New debt or financial obligation; Other company announcement
• Sep 22, 2026 Major agreement signed; Executive or board change; Investor presentation or announcement
• Sep 10, 2026 Major agreement signed; Other company announcement
• Sep 8, 2026 Quarterly results released; Other company announcement
• Aug 11, 2026 Executive or board change; Investor presentation or announcement; Other company announcement
• Jul 30, 2026 Major agreement signed; Quarterly results released; Investor presentation or announcement
• Jul 15, 2026 Investor presentation or announcement

Group 1 pays a small but fast-growing dividend. It raised its regular dividend five years running, from $0.60 a share in 2020 to $2.00 in 2025. Dividends took just 7.9% of 2025 earnings and 6% of free cash flow (cash from operations after capital spending). The yield was 0.86% as of October 28, 2026, so most of an investor's return would have to come from the share price. Buybacks matter far more: from 2021 through 2025 the company spent $1.62 billion repurchasing shares versus $123.6 million on dividends, and the share count fell 34% between July 2021 and July 2026.

The shares have fallen hard in downturns: 83.4% from peak to low in the 2008 financial crisis and 70.1% in the 2020 COVID crash, though they regained the prior high by October 2020. As of October 28, 2026, the stock was down 36.1% over one year. Like any single stock, Group 1 carries more risk than a diversified fund.