- Current quarter diluted earnings per common share from continuing operations of $8.59 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $9.36

- Recently completed the purchase of 10 high volume and high margin dealerships from Hennessy Automobile Companies, expanding our presence in the fast-growing Atlanta market to 15 dealerships

- Disposition plan supporting our strategy to reduce leverage on track: completed U.S. dispositions with approximately $235 million in proceeds since quarter end, with an additional $125 million in proceeds expected from dispositions under definitive agreement, totaling approximately $360 million of proceeds

- All time record customer pay revenues and repair order count in the U.S.

HOUSTON, Oct. 28, 2026 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 256 dealerships located in the U.S. and U.K., today reported financial results for the third quarter of 2026 ("current quarter").

"We're pleased to have closed the Hennessy acquisition and grateful to the Hennessy family for 62 years of excellent stewardship," said Daryl Kenningham, Group 1's President and Chief Executive Officer. "This acquisition aligns with our strategy to focus on high-revenue, premium brand stores in growing markets where we have a strong local presence. We have been deliberately reshaping our portfolio into larger, more profitable stores and seeing good progress selling stores that don't fit our strategy. Proceeds from these sales will support our commitment to reduce our leverage.

Our focus on operating execution was evident in the third quarter. Year-over-year growth rates improved across key same store operating metrics compared to the second quarter, despite challenging market conditions. Importantly, in the U.S. we grew same-store customer pay revenue and repair orders 3% and 4% year-over-year, respectively, and continued to benefit from the cost-cutting actions we took earlier this year."

Reconciliations for financial results, non-GAAP metrics and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.

Current Quarter Results Overview

- Current quarter total revenues were $5.4 billion, compared to $5.8 billion for the third quarter of 2025 ("prior-year quarter").

- Current quarter net income from continuing operations was $102.9 million, compared to $13.1 million for the prior-year quarter.

- Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $112.1 million, compared to $135.1 million for the prior-year quarter.

- Current quarter diluted earnings per common share from continuing operations was $8.59, compared to $1.02 for the prior-year quarter.

- Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $9.36, compared to $10.45 for the prior-year quarter.

U.S. Operations Update

- U.S. parts and service customer pay revenues for the current quarter were $305.5 million, a 0.6% increase, compared to $303.5 million for the prior-year quarter. On a same store basis, U.S. parts and service customer pay revenues for the current quarter were $297.4 million, a 3.2% increase, compared to $288.2 million for the prior-year quarter.

- U.S. SG&A expenses for the current quarter were $452.1 million, a 6.0% decrease, compared to $481.2 million for the prior-year quarter. U.S. adjusted SG&A expenses for the current quarter were $445.2 million, a 5.4% decrease, compared to $470.7 million for the prior-year quarter.

- U.S. used vehicle GP PRU for the current quarter was $1,527, a 0.2% decrease, compared to $1,529 for the prior-year quarter. On a same store basis, U.S. used vehicle GP PRU for the current quarter was $1,544, a 1.6% increase, compared to $1,520 for the prior-year quarter.

U.K. Operations Update

- U.K. new vehicle retail units sold for the current quarter were 15,984, a 1.9% increase, compared to 15,687 for the prior-year quarter. On a same store basis, U.K. new vehicle retail units sold for the current quarter were 15,467, an 8.1% increase, compared to 14,308 for the prior-year quarter.

- U.K. used vehicle retail GP PRU for the current quarter was $1,437, a 15.7% increase, compared to $1,242 for the prior-year quarter. On a same store basis, U.K. used vehicle retail GP PRU for the current quarter was $1,428, a 13.9% increase, compared to $1,254 for the prior-year quarter.

- U.K. parts and service revenues for the current quarter were $162.3 million, a 2.4% decrease, compared to $166.3 million for the prior-year quarter. On a same store basis, U.K. parts and service revenues for the current quarter were $159.7 million, a 6.4% increase, compared to $150.2 million for the prior-year quarter.

U.S. Corporate Development

- On July 30, 2026, the Company entered into a Purchase and Sale Agreement (the "Purchase Agreement") to acquire substantially all of the assets, including real estate, of Hennessy Automobile Companies, Inc., headquartered in Atlanta, Georgia (the "Hennessy Acquisition"). On October 19th, 2026, the Company completed the Hennessy Acquisition, with total expected annual revenues of approximately $1.7 billion.

- Year to date, the Company has acquired 14 dealership operations, inclusive of the Hennessy Acquisition, in the U.S. with total expected annual revenues of approximately $2 billion. The Company remains focused on efficiently and effectively integrating acquisitions into existing operations to create value for shareholders.

- The Company also completed the disposition of two U.S. dealerships in July 2026 that were acquired during the second quarter with the intention of reselling. Year-to-date total annualized revenues associated with dealership dispositions for the Company in the U.S. were approximately $505 million.

- Subsequent to the current quarter, consistent with our disposition strategy, the Company completed the dispositions of a Lexus, Acura and Honda dealership in the U.S., which generated approximately $305 million in annualized revenues, for proceeds of approximately $235 million. Additionally, the Company has executed agreements to dispose of four dealerships in the U.S., which generated approximately $235 million of annualized revenues, for expected proceeds of approximately $125 million.

U.K. Corporate Development

- During the current quarter, the Company disposed of a Volkswagen and an Audi dealership in the U.K. These dealerships generated approximately $100 million in annualized revenues, bringing year-to-date total annualized revenues associated with dealership dispositions for the Company in the U.K. to approximately $495 million.

- The Company reached an agreement with Jaguar Land Rover ("JLR") in the U.K. to revoke its previous election to terminate 10 JLR franchise agreements, which would have been effective as of August 2027. As a result, the Company will retain and operate the five remaining JLR dealerships in the U.K. it had previously elected to terminate.

- The Company expanded its U.K. network through an agreement with Geely, opening two of three planned locations to date, with the third expected by December 2026. Subsequent to the current quarter, the Company agreed with Chinese automaker Chery to open an Omoda & Jaecoo location in the U.K., also expected by December 2026.

- Year to date, the Company has acquired and integrated three dealership operations in the U.K. with total expected annual revenues of approximately $135 million.

Share Repurchases

The Company did not repurchase any shares of its common stock during the current quarter. During the current year, the Company repurchased 205,190 shares of common stock, representing approximately 1.7% of shares outstanding as of January 1, 2026, at an average price of $353.08 per share, for a total cost of $72.4 million, excluding excise taxes of $0.5 million.

As of September 30, 2026, the Company had 11,947,272 shares of common stock and unvested restricted stock awards outstanding in the aggregate, and $306.3 million remaining under its Board authorized share repurchase program.

Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations in the open market, pursuant to Rule 10b5-1 trading plans or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Third Quarter Earnings Conference Call Details

Daryl Kenningham, Group 1's President and Chief Executive Officer, and several of the Company's senior management team will host a conference call today at 10:00 a.m. ET to discuss the third quarter 2026 financial results. The conference call will be simulcast live on the Internet at http://www.group1corp.com/events. A webcast replay will be available for 30 days. A copy of the Company's presentation will also be made available at http://www.group1corp.com/company-presentations. 

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

A telephonic replay will be available following the call through November 4, 2026, by dialing:

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 256 automotive dealerships, 319 franchises, and 33 collision centers in the United States and the United Kingdom that offer 38 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, and www.facebook.com/group1auto.