Regulatory Environment - The U.K. plans to ban sales of new gasoline and diesel-powered vehicles after 2035, which could impact vehicle offerings and increase operational costs [67]. - The U.S. EPA finalized new emissions standards for light and medium-duty vehicles for model years 2027 through 2032, aimed at reducing GHG emissions [69]. - The company is subject to risks associated with environmental regulations, including potential increases in operational costs due to stricter GHG emissions limits [68]. - The company may incur significant costs related to compliance with new climate-related disclosure laws, starting in 2026, which could impact access to capital [124]. - The company is assessing the impact of California's Climate Corporate Data Accountability Act, which requires annual disclosure of GHG emissions for companies with revenues over $1 billion [124]. - The company is subject to operational risks associated with environmental laws, which may impose significant costs and liabilities [130]. Market Conditions - The U.K. market fell short of mandated targets for new zero emissions vehicles in 2024, with higher targets set for 2025, potentially challenging new vehicle sales [90]. - Inflation and increased energy costs could adversely impact operations and customer demand for vehicles and services [86]. - A significant portion of vehicle purchases are financed, and tightening credit markets may decrease the availability of automotive loans, adversely affecting sales [87]. - Tariffs and market developments could increase production costs for OEMs, potentially leading to higher vehicle prices and reduced demand [97]. - Changes in fuel prices and consumer preferences could adversely affect vehicle sales volumes and service revenues [121]. Competition and Sales - The company faces significant competition in automotive sales, which could adversely impact sales volumes and margins [100]. - The company is dependent on relationships with manufacturers, which may limit its ability to acquire new dealerships or maintain existing agreements [98]. - The transition to an agency model by Mercedes Benz in the U.K. resulted in reduced revenues, with the company receiving only a commission for each sale [106]. - Increased competition for dealership acquisitions may result in fewer opportunities and higher acquisition prices [103]. - Vehicle technology advancements and changes in consumer preferences may adversely affect new and used vehicle sales volumes [107]. Financial Performance - The company recognized impairment charges for intangible franchise rights amounting to $28.2 million, $25.1 million, and $1.3 million for the years ended December 31, 2024, 2023, and 2022 respectively [134]. - The company’s debt securities are rated just below investment-grade, and any downgrade could negatively impact access to debt markets and increase borrowing costs [91]. - The company faces potential increases in insurance costs and changes in coverage availability, which could materially impact financial conditions [116]. - The company has not recorded any goodwill impairments in the past three years, but market conditions could lead to future impairment charges [134]. Operational Risks - The company relies on vehicle manufacturers for new vehicle inventory, and any disruptions in their production could materially affect business operations [93]. - The company relies on third-party vendors for key operational processes, and disruptions in their services could adversely impact business [108]. - Cybersecurity incidents, such as the one experienced by CDK Global, could negatively affect the company's operations and financial condition [111]. - The company is self-insured for a portion of its potential liabilities, which may expose it to significant financial risks [116]. - The company may face challenges in integrating acquired dealerships, which could impact revenue growth and operational efficiency [105]. Workforce and Internal Controls - As of December 31, 2024, the company had 20,413 employees, with 13,398 in the U.S. and 7,015 in the U.K. [74]. - Management has designed and implemented internal controls and procedures, which are periodically reviewed and updated [137]. - There has not been a material failure of internal controls reported [137]. - Any failure or circumvention of controls could have a material adverse effect on business operations and financial condition [137]. Expansion and Growth - The company doubled its footprint in the U.K. during the current year through the acquisition of Inchcape Retail [104].

Core Viewpoint - Group 1 Automotive (GPI) has increased its annual dividend for 2025 to $2 per share, reflecting a 6% rise from the previous year, which is indicative of the company's financial strength and commitment to shareholder returns [1][2]. Dividend and Financial Performance - The quarterly dividend of 50 cents per share will be distributed on March 17, 2025, to shareholders on record as of March 3, 2025 [1]. - GPI has raised dividends 11 times in the last five years, with an annualized growth rate of 12.5%, and maintains a sustainable payout ratio of just 5% [2]. - Year-to-date, GPI shares have increased by 11.2%, outperforming the Zacks Retail – Wholesale sector's 8.3% and the Zacks Automotive – Retail and Wholesale industry's 10.6% [3]. Stock Valuation and Trends - GPI shares are currently undervalued with a Value Score of A, trading at a forward price/sales ratio of 0.29x compared to the sector's 1.67x [7]. - The stock is trading above both the 50-day and 200-day moving averages, indicating a bullish trend [9]. Strategic Acquisitions and Aftersales Growth - GPI has integrated 54 new stores and two corporate organizations in Q4 2024, with total acquired revenues of approximately $4 billion, including the Inchcape buyout expected to contribute $2.7 billion in annualized revenues [12]. - The aftersales business has become a key profitability driver, with Q4 2024 revenues and gross profit showing year-over-year growth, alongside a 6.5% increase in repair orders [13]. Partnerships and Revenue Sources - GPI has established strong partnerships with major automotive brands, enhancing its competitive edge and product offerings [14]. - Key brands such as Toyota, General Motors, and Ford contribute 19%, 9%, and 7% of GPI's total revenues, respectively, providing diversification against market fluctuations [15]. Earnings and Revenue Estimates - The Zacks Consensus Estimate for GPI's Q1 2025 EPS is $9.67, reflecting a 1.9% year-over-year growth, with revenues estimated at $5.29 billion, indicating an 18.43% increase [17]. - For full-year 2025, the EPS estimate is $40.86, up 1.2% over the past month, with revenues projected at $21.83 billion, representing a 9.52% year-over-year growth [18]. Macroeconomic Challenges - The U.K. automotive market faces challenges due to government-imposed zero-emissions vehicle mandates, which have not been met, creating pressure on new vehicle sales [19]. - Geopolitical uncertainties, including tariffs and trade restrictions, pose additional risks to GPI's cost structure and profitability [20].

Core Insights - Group 1 Automotive, Inc. will host an Analyst Day event on February 13, 2025, at the New York Stock Exchange, led by President and CEO Daryl Kenningham [1][2] - The Analyst Day will cover the Company's 2024 financial performance, 2025 priorities, updates on U.K. restructuring activities, and include a Q&A session [2] Company Overview - Group 1 operates 258 automotive dealerships, 330 franchises, and 39 collision centers in the U.S. and U.K., offering 35 automobile brands [3] - The Company engages in selling new and used cars, arranging vehicle financing, selling service and insurance contracts, and providing automotive maintenance and repair services [3]

Core Viewpoint - Group 1 Automotive, Inc. has announced a 6% increase in its annual dividend rate for 2025, raising it to $2.00 per share from $1.88 per share in 2024 [1] Group 1 Automotive Overview - Group 1 operates 258 automotive dealerships and 330 franchises in the U.S. and U.K., offering 35 brands of automobiles [2] - The company provides a range of services including the sale of new and used cars, vehicle financing, service and insurance contracts, automotive maintenance and repair, and vehicle parts [2] Dividend Details - The approved dividend of $2.00 per share includes a payment of $0.50 per share scheduled for March 17, 2025, to stockholders of record as of March 3, 2025 [1]

Company Overview - Group 1 Automotive, Inc. is a leading automotive retailer with operations primarily in the United States and the U.K., operating 150 dealerships in the U.S. and 55 in the U.K. [11] - The company sells new and used cars and light trucks, and also offers vehicle financing, insurance, service contracts, maintenance, repair services, and aftermarket automotive products [11]. Investment Analysis - Group 1 Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12]. - The company has a Momentum Style Score of A, with shares increasing by 11% over the past four weeks [12]. - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.47 to $40.59 per share [12]. - Group 1 Automotive has an average earnings surprise of 3%, suggesting potential for positive performance [12]. - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, Group 1 Automotive is recommended for investors' consideration [13].

Core Insights - Group 1 Automotive (GPI) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $10.02, exceeding the Zacks Consensus Estimate of $9.21 and reflecting a year-over-year increase of 5.5% [1] - The company achieved net sales of $5.55 billion, surpassing the Zacks Consensus Estimate of $5.20 billion and increasing from $4.48 billion in the same quarter last year [1] Quarterly Highlights - New vehicle retail sales rose 23.7% year over year to $2.86 billion, exceeding projections of $2.74 billion, with total retail new vehicles sold reaching 57,939 units, a 26.4% increase [2] - Used-vehicle retail sales increased 23.9% from the previous year to $1.65 billion, surpassing the forecast of $1.49 billion, with total retail used vehicles sold at 55,337 units, also up 23.9% [3] - Used-vehicle wholesale sales grew 26% year over year to $128.9 million, exceeding expectations of $112.3 million, while the Parts and Service business saw revenues rise 24.8% to $680.2 million [4] Segment Performance - U.S. business segment revenues increased 12.3% year over year to $4.23 billion, though it fell short of the forecast of $4.29 billion, with gross profit rising 8.7% to $695.9 million [5] - The U.K. business segment experienced a significant revenue jump of 85.3% year over year to $1.31 billion, beating estimates due to strong retail sales, with gross profit surging 102.6% to $183.3 million [6] Financial Position - Selling, general and administrative expenses rose 26% year over year to $614.3 million, while cash and cash equivalents decreased to $34.4 million from $57.2 million [7] - Total debt increased to $2.91 billion as of December 31, 2024, up from $2.1 billion a year earlier [7] Share Repurchase - During the quarter, GPI repurchased 80,300 shares at an average price of $398.30 per share, totaling $32 million, with $476.1 million remaining on its authorized stock buyback program [8]

4Q24 Summary ($MM) 2,256 2,441 1,299 1,342 182 202 530 576 4Q23 4Q24 Same Store Revenues 9% 11% 3% 8% Total Company Revenues 2,311 2,858 1,334 187 1,653 226 545 680 4Q23 4Q24 25% 21% 24% 24% Fourth Quarter & Full Year 2024 Financial Results Investor Presentation January 29, 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 ...

Core Insights - Group 1 Automotive (GPI) reported a revenue of $5.55 billion for the quarter ended December 2024, reflecting a year-over-year increase of 23.8% and surpassing the Zacks Consensus Estimate by 6.67% [1] - The earnings per share (EPS) for the quarter was $10.02, an increase from $9.50 in the same quarter last year, exceeding the consensus EPS estimate of $9.21 by 8.79% [1] Financial Performance Metrics - Retail new vehicles sold in the United States reached 43,348, exceeding the three-analyst average estimate of 41,192 [4] - Retail used vehicles sold in the United States totaled 37,699, surpassing the three-analyst average estimate of 36,714 [4] - The average sales price for new vehicles sold in the United States was $52,688, higher than the estimated $51,851.37 [4] - The average sales price for used vehicles sold in the United States was $30,264, compared to the estimated $29,932.46 [4] Revenue Breakdown - Revenues from new vehicle retail sales in the United States were $2.28 billion, exceeding the estimated $2.14 billion and representing a 14.8% increase year-over-year [4] - Revenues from used vehicle retail sales in the United States were $1.14 billion, surpassing the estimated $1.10 billion and showing a 7.1% year-over-year increase [4] - In the United Kingdom, revenues from new vehicle retail sales were $574.10 million, exceeding the average estimate of $532.99 million and reflecting a 78.4% year-over-year increase [4] - Revenues from finance and insurance (F&I) in the United Kingdom were $29.80 million, compared to the estimated $26.15 million, marking a 96.1% year-over-year increase [4] - Total revenues from new vehicle retail sales amounted to $2.86 billion, exceeding the estimated $2.67 billion and representing a 23.7% year-over-year increase [4] - Revenues from finance, insurance, and other net totaled $225.50 million, surpassing the estimated $207.81 million and reflecting a 20.5% year-over-year increase [4] - Total revenues from used vehicle sales were $1.78 billion, exceeding the estimated $1.65 billion and showing a 24.1% year-over-year increase [4] - Revenues from used vehicle wholesale sales were $128.90 million, surpassing the estimated $113.30 million and reflecting a 26% year-over-year increase [4]

Group 1 Automotive (GPI) came out with quarterly earnings of $10.02 per share, beating the Zacks Consensus Estimate of $9.21 per share. This compares to earnings of $9.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.79%. A quarter ago, it was expected that this auto dealer would post earnings of $9.93 per share when it actually produced earnings of $9.90, delivering a surprise of -0.30%.Over the last four quarters, the co ...

Exhibit 99.1 | Fourth Quarter 2024 | Consolidated | | Same Store (a | | | --- | --- | --- | --- | --- | | Key Performance Metrics | | | non-GAAP measure) | | | (year-over-year comparable period basis) | | | | | | Reported: | 4Q24 | Change | 4Q24 | Change | | Total revenues | $5.5B | +23.8% | $4.7B | +6.8% | | Total gross profit ("GP") | $879.2M | +20.3% | $743.1M | +4.5% | | NV units sold | 57,939 | +26.4% | 47,354 | +6.0% | | NV GP per retail unit ("PRU") | $3,540 | (12.0)% | $3,486 | (13.6)% | | Used vehi ...