Group 1 Automotive Reports First Quarter 2025 Financial Results

Core Viewpoint - Group 1 Automotive reported strong financial results for Q1 2025, with total revenues increasing by 23.1% year-over-year, driven by robust performance in both the U.S. and U.K. markets [5][12]. Financial Performance - Total revenues for Q1 2025 reached $5.5 billion, a 23.1% increase from $4.5 billion in Q1 2024 [12]. - Net income from continuing operations was $127.7 million, down 13.3% from $147.4 million in the prior year [12]. - Adjusted net income from continuing operations increased by 3.6% to $134.7 million compared to $130.0 million in Q1 2024 [12]. - Diluted earnings per share from continuing operations were $9.64, a decrease of 10.4% from $10.76 in the prior year [12][24]. U.S. Operations - U.S. revenues for Q1 2025 totaled $3.9 billion, reflecting a 7.6% increase from $3.6 billion in Q1 2024 [29]. - New vehicle retail sales in the U.S. increased by 9.4% to $1.97 billion, while used vehicle retail sales rose by 4.1% to $1.14 billion [29]. - Gross profit from U.S. operations was $675.0 million, a 5.6% increase from $639.1 million in the previous year [29]. U.K. Operations - U.K. revenues reached $1.6 billion, marking a 92.0% increase year-over-year, with gross profit also hitting a record of $217.0 million [11][12]. - The integration of newly acquired dealerships has improved U.K. SG&A as a percentage of gross profit to pre-acquisition levels [3][6]. - The company recognized $11.1 million in restructuring charges in the U.K. during the current quarter [6]. Vehicle Sales and Margins - Total new vehicle units sold increased by 26.6% to 56,099 units, while used vehicle retail units sold rose by 21.2% to 59,618 units [5][12]. - Gross profit per retail unit for new vehicles decreased by 6.1% to $3,381, and for used vehicles, it decreased by 6.0% to $1,569 [5][12]. Share Repurchases - The company repurchased 286,731 shares at an average price of $428.33, totaling $122.8 million, representing 2.2% of outstanding shares [9][10]. Corporate Development - The company acquired one Lexus and three Toyota dealerships in the U.K., expected to generate approximately $100 million in annual revenues [7]. - The company disposed of one Subaru dealership in the U.S. and closed two Volkswagen dealerships in the U.K., which generated about $150 million in annual revenues [8].