Core Insights - Group 1 Automotive (GPI) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $11.52, exceeding the Zacks Consensus Estimate of $10.31 and reflecting a 17.5% year-over-year increase [1] - The company achieved net sales of $5.7 billion, surpassing the Zacks Consensus Estimate of $5.55 billion and up from $4.7 billion in the same quarter last year [1] Q2 Highlights - New vehicle retail sales increased by 15.7% year-over-year to $2.74 billion, although it fell short of the projected $2.83 billion due to lower-than-expected volumes [2] - Total retail new vehicles sold reached 55,763 units, a 17% increase year-over-year, but missed the forecast of 57,290 units [2] - The average selling price per new vehicle was $50,557, up 1.1% year-over-year, with gross profit from new vehicle retail totaling $198.4 million, a 16.6% increase year-over-year [2] Used-Vehicle Performance - Used-vehicle retail sales rose 27.2% year-over-year to $1.85 billion, exceeding the forecast of $1.72 billion due to higher-than-anticipated unit sales [3] - Total retail used vehicles sold were 60,240 units, up 22.3% year-over-year, surpassing the expectation of 58,438 units [3] - The average selling price per used vehicle was $30,713, up 4.1% year-over-year, with gross profit from used vehicles at $96.4 million, a 19.5% increase year-over-year [3] Wholesale and Other Segments - Used-vehicle wholesale sales surged 57% year-over-year to $163.8 million, beating the expectation of $115.7 million, with a gross profit of $0.5 million compared to a gross loss of $1.1 million in the prior year [4] - Parts and Service revenues increased by 25% to $718.4 million, with gross profit rising 27.1% to $402.8 million year-over-year [4] - Finance and Insurance revenues were $237.8 million, up 18.8% from the previous year [4] Segment Performance - U.S. business segment revenues rose 6.5% year-over-year to $4.18 billion, although it missed the forecast of $4.22 billion [5] - Gross profit for the U.S. segment increased by 9.1% to $728.7 million, falling short of the prediction of $732.4 million [5] - In the U.K. business segment, revenues jumped 96.9% year-over-year to $1.53 billion, exceeding the estimate of $1.28 billion, with gross profit surging 109.6% to $207.1 million [6] Financial Position - Selling, general and administrative expenses rose 29.9% year-over-year to $646.1 million [7] - Cash and cash equivalents increased to $52.7 million as of June 30, 2025, up from $34.4 million at the end of 2024 [7] - Total debt rose to $3.2 billion as of June 30, 2025, from $2.91 billion at the end of 2024 [7] Share Repurchase - During the quarter, GPI repurchased 114,918 shares at an average price of $387.39 per share, totaling $44.5 million [8] - The company has $308.8 million remaining on its authorized stock buyback program [8] Overall Performance - GPI's Q2 results exceeded earnings and revenue estimates, with significant growth in both new and used vehicle retail sales [9] - The U.K. segment's nearly doubled revenues significantly contributed to the overall gross profit increase [9]

Core Points - Lexus of Albuquerque is set to unveil a newly renovated, state-of-the-art dealership after a 20-month, multi-million dollar renovation [1] - The grand reopening will feature activities including food, drink, and entertainment, showcasing the latest Lexus models [2] - The new dealership aims to enhance the customer experience with modern amenities and increased service capacity [3][4] Company Overview - Lexus of Albuquerque is part of Group 1 Automotive, Inc., which operates 258 automotive dealerships and 322 franchises in the U.S. and the U.K. [6] - Group 1 Automotive offers a range of services including vehicle financing, maintenance, and repair services [6] Facility Enhancements - The new dealership includes a car wash, an increase in service bays from 16 to 32, and plans to expand the number of service technicians from 21 to 30 [3] - The showroom features a design inspired by Albuquerque city themes, accommodating 22 salespeople and more vehicles [4] - Over 17,000 square feet of additional space has been created for parts and service, enhancing guest convenience [4] Community Engagement - Lexus of Albuquerque is contributing $10,000 to Girls on the Run, a nonprofit organization focused on youth development through physical activity [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13461 Group 1 Automotive, Inc. (Exact name of registrant as specified in its charter) (State of other jurisdiction of incorporation or organi ...

For the quarter ended June 2025, Group 1 Automotive (GPI) reported revenue of $5.7 billion, up 21.4% over the same period last year. EPS came in at $11.52, compared to $9.80 in the year-ago quarter.The reported revenue represents a surprise of +2.71% over the Zacks Consensus Estimate of $5.55 billion. With the consensus EPS estimate being $10.31, the EPS surprise was +11.74%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations improved by 12.4% in the second quarter, with EPS increasing by 17.5% on the same basis [6] - Quarterly record revenues reached $5.7 billion, with gross profit at $936 million and adjusted diluted EPS from continuing operations at $11.52 [22] - Same store gross profit increased by 4.35% compared to the prior year, despite a slight decline in GPUs of 0.3% to 0.9% [23][24] Business Line Data and Key Metrics Changes - U.S. new car sales increased by 6% on a same store basis, with parts and service revenues growing by 11.7% to 12.8% [7][22] - Used car volumes were up nearly 4% year over year, with gross profits increasing by $29 [8][24] - Aftersales gross profit rose by 14.3%, with customer pay revenue up 13.6% and warranty revenue up 31.9% [8][25] Market Data and Key Metrics Changes - U.S. inventories were flat compared to the previous quarter and down nearly 15% from the end of 2024, with a healthy day supply of 48 days [7] - In the UK, revenues and gross profit increased by 96.9% to 109.6% year over year due to acquisition activity, with used vehicles, parts and service, and F&I growing by 16% and 12% to 28.7% respectively [28] - Same store retail used vehicle units sold in the UK increased over 8% year over year [28] Company Strategy and Development Direction - The company is focusing on improving productivity and operational efficiency, with plans to invest in technology and artificial intelligence to enhance customer experience [20] - Continued investment in aftersales business is seen as a significant opportunity, with plans to increase technician headcount and improve service capacity [9][10] - The company is balancing acquisitions and share repurchases, having acquired three dealerships in the quarter and repurchased 3% of its shares for $167.3 million [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution moving forward due to pressures on consumers from rising car prices and interest rates, while also noting the potential for new and used vehicle GPUs to elevate as inventories tighten [12][13] - The UK market is facing macroeconomic challenges, but the company is confident in its long-term growth prospects and has made significant progress in cost reductions [14][15] - Management believes that retailers who can drive scale, productivity, and lower transaction costs will be the winners in the future [19] Other Important Information - The company incurred $7.6 million in restructuring costs related to ongoing UK restructuring plans [30] - As of June 30, the company had liquidity of $1.1 billion, with $374 million in accessible cash and $739 million available to borrow [31] Q&A Session Summary Question: How did new car GPUs progress through the quarter? - Management indicated that new car GPUs were strong throughout the quarter, with no significant spikes due to inventory changes or manufacturer incentives [34][36] Question: What are the key factors affecting the UK cost target increase? - The increase in cost targets is primarily due to government-imposed costs and additional headcount reductions, with a total of approximately 800 positions cut [37][38] Question: How does the company view competition from online retailers in the used car market? - Management acknowledged the opportunity to consolidate and grow within their existing footprint, while also learning from online competitors [49][50] Question: What impact do BEV mandates in the UK have on gross margins? - Management noted that BEV sales are primarily going to corporate fleets, which yield lower margins compared to retail sales [58][60] Question: What is the outlook for lease returns and their impact on traffic? - Management indicated that predicting lease returns is challenging, but they are actively acquiring off-lease vehicles as part of their strategy [70] Question: What are the expectations for warranty work and customer pay growth? - Management expressed confidence in customer pay growth, although they do not expect to fully offset a slowdown in warranty work with customer pay alone [81]

Financial Data and Key Metrics Changes - Adjusted net income from continuing operations improved by 12.4% in the second quarter, with EPS increasing by 17.5% on the same basis [5] - Quarterly record revenues reached $5.7 billion, with gross profit at $936 million and adjusted diluted earnings per share from continuing operations at $11.52 [21] - New vehicle units sold increased by 4.66% on an as-reported basis, reflecting strong demand and operational execution [22] Business Line Data and Key Metrics Changes - U.S. new car sales were up 6% on a same-store basis, with parts and service revenues increasing by 11.7% to 12.8% [6][22] - Used vehicle revenues were the third highest on record, with a volume increase of 2.73% to 3.9% on an as-reported basis [22] - Aftersales gross profit increased by 14.3%, with customer pay revenue up 13.6% and warranty revenue up 31.9% [7][24] Market Data and Key Metrics Changes - The U.K. business showed a 96.9% to 109.6% increase in revenues and gross profit year-over-year, with used vehicles, parts and service, and F&I growing by 16% and 12% to 28.7% respectively [27] - Same-store retail used vehicle units sold in the U.K. increased over 8% year-over-year, while gross profit per unit remained relatively flat [27] Company Strategy and Development Direction - The company is focusing on improving productivity and operational efficiency, with plans to invest in technology and process improvements [19][30] - Continued investment in the aftersales business is seen as a significant opportunity, with a goal to increase customer pay and warranty revenues [8][12] - The company is balancing acquisitions and share repurchases, having acquired three dealerships in the quarter [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution moving forward due to pressures from car prices and rising interest rates affecting consumer demand [13] - The U.K. market faces macroeconomic challenges, but the company is confident in its long-term growth potential [14][16] - Management anticipates that most retailers who can drive scale and productivity will be the winners in the future [18] Other Important Information - The company has deferred certain capital expenditure projects and is reevaluating discretionary spending in light of the competitive environment [13] - The U.K. government announced subsidies for BEV vehicles, which may positively impact sales [14] Q&A Session Summary Question: How did new car GPUs progress through the quarter? - Management indicated that GPUs were strong throughout the quarter without significant spikes due to inventory changes [34][40] Question: Clarification on U.K. cost targets? - The increase in cost targets was primarily due to government-imposed increases and additional headcount reductions [36][37] Question: Sustainability of parts and service growth in the U.K.? - Management believes there is room for further growth in customer pay and plans to increase car count with more technicians [41][42] Question: Key factors for aftersales growth in the next few years? - The focus will be on reaching deeper into the owner base of older vehicles to increase market share [46][48] Question: Impact of BEV mandates on gross profit? - BEV volume is primarily going into corporate fleets, which affects retail margins [60][61] Question: Acquisition environment and opportunities? - Management noted that while the year has been quiet, there are signs of increased activity in the acquisition space [64] Question: How do lease returns affect future traffic? - Management indicated that predicting lease returns is difficult, but they are taking as many off-lease vehicles as possible [72][74] Question: U.K. SG&A costs and integration efforts? - The increase in SG&A costs was attributed to national insurance changes and ongoing integration efforts [82] Question: Confidence in customer pay growth offsetting warranty slowdowns? - Management expressed confidence in customer pay growth, although it may not fully offset warranty declines [85]

Second Quarter 2025 Financial Results Investor Presentation July 24, 2025 Group 1 Automotive 2025 Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements re ...

Core Viewpoint - Group 1 Automotive reported quarterly earnings of $11.52 per share, exceeding the Zacks Consensus Estimate of $10.31 per share, and showing an increase from $9.8 per share a year ago, representing an earnings surprise of +11.74% [1][2] Financial Performance - The company posted revenues of $5.7 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.71%, compared to $4.7 billion in the same quarter last year [2] - Over the last four quarters, Group 1 Automotive has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Group 1 Automotive shares have declined approximately 1% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The current status of estimate revisions has resulted in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $10.40 on revenues of $5.56 billion, and for the current fiscal year, it is $41.14 on revenues of $22.33 billion [7] - The outlook for the automotive retail and wholesale industry is positive, with the industry currently ranking in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] Industry Comparison - Another company in the same industry, Lithia Motors, is expected to report quarterly earnings of $9.55 per share, reflecting a year-over-year increase of +21.4%, with revenues anticipated to be $9.53 billion, up 3.3% from the previous year [9][10]

Exhibit 99.1 FOR IMMEDIATE RELEASE Group 1 Automotive Reports Record Revenues and Gross Profit in the Second Quarter of 2025 HOUSTON, TX, July 24, 2025 — Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 258 dealerships located in the U.S. and U.K., today reported financial results for the second quarter of 2025 ("current quarter"). "We were pleased with our growth in the second quarter. Same store revenues increased 7.1%. Parts and service was a brigh ...

In its upcoming report, Group 1 Automotive (GPI) is predicted by Wall Street analysts to post quarterly earnings of $10.31 per share, reflecting an increase of 5.2% compared to the same period last year. Revenues are forecasted to be $5.55 billion, representing a year-over-year increase of 18.2%. The consensus EPS estimate for the quarter has undergone an upward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed thei ...