Group 1 Automotive Adjusted Profit Slips as Revenue Falls; Atlanta Expansion Closes

Group 1 Automotive reported lower third-quarter adjusted earnings on Wednesday as revenue and vehicle sales slipped, while the auto retailer leaned on record U.S. service business and closed a 10-dealership acquisition that expands its Atlanta presence to 15 stores.

Adjusted diluted earnings per share from continuing operations fell to $9.36 from $10.45 a year earlier, according to the earnings release Group 1 filed with an 8-K on Wednesday. On a GAAP basis, diluted EPS from continuing operations rose to $8.59 from $1.02, and net income from continuing operations climbed to $102.9 million from $13.1 million.

Softer sales, record service

Total revenue fell 6.7% to $5.4 billion from $5.8 billion, and same-store revenue declined 2.8%. New vehicle units sold dropped 3.5% to 55,259, while used vehicle retail units fell 10.5% to 53,343.

The company's parts and service operations were a bright spot. Group 1 reported all-time record customer pay revenues and repair order count in the U.S. On a same-store basis, U.S. customer pay revenue rose 3.2% to $297.4 million.

"Our focus on operating execution was evident in the third quarter," President and CEO Daryl Kenningham said in the release. He added that year-over-year growth rates improved across key same-store operating metrics compared with the second quarter, "despite challenging market conditions."

U.S. SG&A expenses fell 6.0% to $452.1 million, and Kenningham said the company continued to benefit from cost-cutting actions taken earlier this year.

Hennessy deal closes

On Oct. 19, Group 1 completed its purchase of Hennessy Automobile Companies, adding 10 dealerships in Atlanta with total expected annual revenues of about $1.7 billion. The deal brings the company to 15 dealerships in the Atlanta market.

"We're pleased to have closed the Hennessy acquisition and grateful to the Hennessy family for 62 years of excellent stewardship," Kenningham said, describing a strategy focused on "high-revenue, premium brand stores in growing markets."

So far this year, the company has acquired 14 U.S. dealership operations with total expected annual revenues of about $2 billion.

Selling stores to cut leverage

At the same time, Group 1 is pruning its portfolio to reduce leverage. Since the quarter ended, it completed U.S. dispositions that brought in about $235 million in proceeds, and it expects another $125 million from four U.S. dealerships under definitive agreement, for roughly $360 million in total.

In the U.K., the company sold a Volkswagen and an Audi dealership during the quarter and reached an agreement with Jaguar Land Rover to revoke its earlier election to terminate 10 franchise agreements. As a result, it will keep operating five U.K. JLR dealerships it had previously planned to exit.

Buybacks on hold

Group 1 did not repurchase any shares during the third quarter. Year to date, it has bought back 205,190 shares at an average price of $353.08, for a total of $72.4 million, and had $306.3 million remaining under its authorization as of Sept. 30.

Sources

1. Group 1 Automotive Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001031203-26-000141)

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