Group 1 Automotive GPI reported first-quarter 2025 adjusted earnings per share (EPS) of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, which beat the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion. 

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Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote

GPI’s Q1 Highlights

New vehicle retail sales increased 22.8% from the prior-year quarter to $2.68 billion, which beat our projection of $2.64 billion on the back of higher-than-expected volumes. Total retail new vehicles sold were 56,099 units, which increased 26.6% year over year and surpassed our forecast of 53,176 units. The average selling price per unit was $49,861, up 0.3% year over year. The gross profit from the new vehicle retail unit totaled $189.6 million, up 18.9% year over year.

Used-vehicle retail sales rose 23.9% from the year-ago period to $1.76 billion and surpassed our forecast of $1.68 billion. Total retail used vehicles sold were 59,618 units, up 21.2% year over year, exceeding our expectation of 57,181 units. The average selling price per unit was $29,449, up 2.2% year over year. The gross profit from the unit was $93.5 million, up 14% year over year.

Used-vehicle wholesale sales rose 43% year over year to $151.6 million and outpaced our expectation of $120.7 million. The unit earned a gross profit of $1.5 million against a gross loss of $0.9 million in the year-ago period. In the Parts and Service business, the top line rose 20.1% to $692.1 million and gross profit increased 21.7% to $381 million year over year. Revenues from the Finance and Insurance business were $226.2 million, up 19.8% from the year-ago period’s level.

GPI’s Segments in Detail

In the reported quarter, revenues from the U.S. business segment rose 7.6% year over year to $3.92 billion but missed our forecast of $4.1 billion. The segment’s gross profit rose 5.6% to $675 million but fell short of our prediction of $704.1 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 37,835, 38,613 and 10,217, respectively.
In the first quarter, revenues jumped 92% year over year to $1.58 billion for the U.K. business segment, beating our estimate of $1.17 billion. Gross profit was $217 million, which surged 109.6% from the year-ago quarter and beat our projection of $139.4 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 18,264, 21,005 and 6,137, respectively.

GPI’s Financial Position

Selling, general and administrative expenses were up 29.6% year over year to $617.3 million. Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.

During the quarter under discussion, GPI repurchased 286,731 shares at an average price of $428.33 per common share for a total of $122.8 million. The company currently has $353.3 million remaining on its authorized stock buyback program.

GPI’s Zacks Rank

Group 1 carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Sonic Automotive, Inc. SAH posted first-quarter 2025 adjusted earnings per share of $1.48, which topped the Zacks Consensus Estimate of $1.46 and improved 8.82% from the year-ago quarter. Total revenues amounted to $3.65 billion, which surpassed the Zacks Consensus Estimate of $3.54 billion and rose from the year-ago quarter’s $3.38 billion.

Sonic Automotive had cash & cash equivalents of $64.6 million as of March 31, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.49 billion as of March 31, 2025, down from $1.51 billion as of Dec. 31, 2024.

Lithia Motors LAD reported first-quarter 2025 adjusted earnings per share of $7.66, which improved from the prior-year quarter’s $6.11 but missed the Zacks Consensus Estimate of $7.77. The company clocked revenues of $9.18 billion, which increased 7.3% year over year but lagged the Zacks Consensus Estimate of $9.33 billion.

Lithia Motors had cash/cash equivalents/restricted cash of $430.3 million as of March 31, 2025, up from $402.2 million as of Dec. 31, 2024. Long-term debt was $5.9 billion as of March 31, 2025, down from $6.1 billion as of Dec. 31, 2024.

AutoNation, Inc. AN reported first-quarter 2025 adjusted earnings of $4.68 per share, which increased 4% year over year and beat the Zacks Consensus Estimate of $4.35, primarily on the back of better-than-expected revenues and profits from retail new and used vehicles. In the quarter under review, revenues amounted to $6.69 billion, which surpassed the Zacks Consensus Estimate of $6.57 billion and rose from $6.48 billion reported in the first quarter of 2024.

As of March 31, 2025, AutoNation’s liquidity was $1.6 billion, including $71 million in cash and nearly $1 billion available under its revolving credit facility. The firm’s inventory was valued at $3.23 billion. At the end of the first quarter, non-vehicle debt was $3.96 billion.


 

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