Group 1 Automotive’s record 2025 revenues driven by Fixed Ops, F&I

Core Insights - Group 1 Automotive reported record full-year revenues of $22.6 billion for 2025, marking a 13.2% increase over 2024, despite pressure on new-car margins [1] Financial Performance - Record revenues were achieved across all business lines, particularly in Parts & Service and Finance & Insurance [1] - U.S. operations sold 40,500 new vehicles at retail in Q4 2025, a decrease of 4.2% from the same quarter in 2024, while total new vehicle sales for the year reached 157,790, an increase of 2.8% [3] - Average new-car gross profit per vehicle sold in U.S. operations decreased by 12.7% year-over-year to $3,181 in Q4, and for the full year, it was down 7.9% to $3,371 [4] Operational Efficiency - The company reported a 10-point decrease in technician turnover, contributing to increased productivity [2] - A project to air-condition service departments nationwide has aided in technician retention [2] - U.S. technician headcount increased by 2.3% in 2025, while customer-pay work rose by 5% and warranty work increased by 11% in Q4 [6] Parts and Service Revenue - U.S. parts and service revenue for Q4 was $525.5 million, a 2.9% increase from Q4 2024, and for the full year, it reached $2.1 billion, up 7.1% from 2024 [5] - The increase in parts and service results was greater than the net increase in technician headcount [6] Future Outlook - Group 1 anticipates further improvements in Fixed Operations and Finance & Insurance for 2026, along with growth in the used-vehicle business [3]