Group 1 Automotive, Inc. functions as an automotive retail enterprise, operating through its various subsidiary companies. The firm's primary activities include vending ...
Group 1 Automotive, Inc. (NYSE: GPI) is a leading automotive retail enterprise with a market cap of approximately $3.18 billion as of the latest data. Founded in 1995 and publicly listed in October 1997, the company has grown into the third-largest dealership group in the United States. Its operations span ...Group 1 Automotive, Inc. (NYSE: GPI) is a leading automotive retail enterprise with a market cap of approximately $3.18 billion as of the latest data. Founded in 1995 and publicly listed in October 1997, the company has grown into the third-largest dealership group in the United States. Its operations span 17 U.S. states and 35 towns in the United Kingdom, with 204 dealerships, 273 franchises, and 47 collision repair centers as of mid-2022, representing 35 car brands. The business generates revenue through new and used vehicle sales, parts, service and repair, financing, and insurance contracts. With over 20,000 employees globally, Group 1 emphasizes an omni-channel platform, integrating online and physical sales to enhance customer experience. Financially, the company reported a TTM gross profit margin of 15.7%, net profit margin of 1.3%, and a price-to-earnings ratio of 11.1, reflecting a stable position in the consumer cyclical sector. Key leadership includes CEO Daryl Kenningham, who drives strategic initiatives, and CFO Daniel McHenry, overseeing financial operations. The company also invests in communities and employee development, positioning itself for sustainable growth amid evolving automotive retail trends.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$22.6B
+13.2%
-0.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$323.7M
-35.0%
-20.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+15.5%
-4.6%
-1.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+4.2%
-7.8%
-15.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.4%
-42.6%
-20.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$374.9M
+69.2%
+5356.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.7%
+49.4%
+5377.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
210.5%
+19.5%
+2.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.08x
+4.5%
+7.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, ladies and gentlemen. Welcome to Group 1 Automotive's First Quarter 2026 Financial Results Conference Call. Please be advised that this call is being recorded. I would now like to turn the floor over to Mr. Peter DeLongchamps, Group 1's Senior Vice President, Manufacturer Relations and Financial Services. Please go ahead, Mr. DeLongchamps.
Peter Delongchamps: Thank you, Jamie, and good morning, everyone, and welcome to today's call. The earnings release we issued this morning and a related slide presentation that includes reconciliations related to the adjusted results that we will refer to on this call for comparison purposes have been posted to Group 1's website. Before we begin, I'd like to make some brief remarks about forward-looking statements and the use of non-GAAP financial measures. Except for historical information mentioned during the conference call, statements made by management of Group 1 Automotive are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve both known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume, inventory supply, conditions of the market, successful integration of acquisitions and adverse developments in the global economy and resulting impacts on demand for new and used vehicles and related services. Those and other risks are described in the company's filings with the Securities and Exchange Commission. In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call. As required by applicable SEC rules, the company provides reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on its website. Participating with me on today's call are Daryl Kenningham, our President and Chief Executive Officer; and Daniel McHenry, Senior Vice President and Chief Financial Officer. I'd now like to hand the call over to Daryl.
Daryl Kenningham: Thank you, Peter. At Group 1, we pride ourselves on performing effectively in challenging times. We successfully navigated economic recessions, the COVID pandemic and the CDK outage in 2024. We focus on what we can control, and by remaining a pure-play retailer, we minimize distractions and remain focused on what we feel are our core competencies. We estimate that Q1 2026 weather impacted our results by about $7 million in gross profit, driven largely by our after-sales business. Important to note is that Group 1 typically pays our employees during weather closures. And in some markets, our stores were closed for as long as a week this year. In the first quarter of 2026, we continue to focus on our strengths. Where our performance did not meet our expectations, we acted promptly to …