Group 1 Automotive

Group 1 Automotive owns and runs car dealerships in the United States and the United Kingdom. In October 2026, it had 256 dealerships, 319 franchises and 33 collision centers that sell 38 brands, and Toyota and Lexus were the largest brands in Q3 2026. It sells new and used cars and light trucks, arranges loans and leases, sells service contracts, repairs cars and sells parts. New and used car sales give most of the revenue, but parts and service and finance and insurance give a large part of the gross profit.

Parts and service gross profit was $392.0 million in Q3 2026, at a gross margin of 55.9%. Group 1 buys dealerships in groups in the same city, a cluster strategy, to cut costs and share staff. It finances its car inventory with floorplan loans from banks and car makers' finance companies.

The market prices Group 1 for lower profits per car while high interest rates and high car prices make cars hard to afford. In Q3 2026, total gross profit fell 7.1%, new vehicle gross profit per car fell 5.4% to $3,074, used retail units fell 10.5%, and adjusted EPS fell to $9.36 from $10.45. US adjusted SG&A rose to 67.7% of gross profit, from 65.8% a year earlier. At the same time, Group 1 added debt to buy the Hennessy dealerships in Atlanta for about $1.3 billion, and it closed that purchase on October 19, 2026.

Before the closing, the company's own pro forma net leverage ratio was 4.2 times. Investors fear that profits keep falling while debt is higher. For the gap to close, three things must be true. Gross profit per car must stop falling, and used car volumes must stabilize.

US adjusted SG&A must come back to the 66.4% of gross profit of Q2 2026 or lower, with the $50 million of yearly cost cuts in place. Hennessy must add its expected $1.7 billion of yearly revenue and earnings, and the sale of dealerships that do not fit the strategy, with about $360 million of expected proceeds, must lower leverage. The Q4 2026 report, expected in early 2027, is the first quarter with Hennessy, and the 2027 quarterly reports show whether leverage falls. If profits per car stabilize, the gap can close over the next four to six quarters.

If high rates keep cars hard to afford for longer, profits can stay low and the higher debt adds risk.

1. Oct 19, 2026Passed

   Hennessy purchase closesClosing by the end of 2026 with all approvals passes; a delay past January 6, 2027 that forces the redemption of the 2032 notes fails.Outcome: Group 1 completed the Hennessy purchase on October 19, 2026, for about $1.3 billion.
2. Oct 28, 2026Failed

   Q3 2026 results: gross profit per car and costsNew vehicle gross profit per car that stops falling and US adjusted SG&A near 66% of gross profit pass; another large fall in gross profit and EPS fails.Outcome: New vehicle gross profit per car fell 5.4% to $3,074, US adjusted SG&A rose to 67.7% of gross profit, and adjusted EPS fell to $9.36 from $10.45.
3. Jan 28, 2027 · est.Pending

   Q4 2026 results: first quarter with Hennessy and leverageStable same store gross profit and a lower leverage ratio after the Hennessy closing pass; falling same store profits with higher leverage fail.

Every passed and failed checkpoint across all picks

• November 10, 2026Group 1 appointed Peter C. DeLongchamps, its Senior Vice President of Manufacturer Relations, Financial Services and Corporate Development, as President of U.S. Operations. He reports to the CEO and supervises the U.S. dealerships. On the same day, the board declared a quarterly dividend of $0.55 per share, payable on December 15, 2026 to holders of record on December 1, 2026. It also adopted new bylaws: holders need at least 25% net long ownership to ask for a special meeting, and the rules for advance notice of director nominations are stricter.
• October 28, 2026Group 1 reported Q3 2026 results. Revenue was $5.4 billion, down 6.7%. Diluted EPS from continuing operations was $8.59, and adjusted EPS was $9.36, down from $10.45. New vehicle gross profit per car fell 5.4% to $3,074, and used retail units fell 10.5%. US same store customer pay parts and service revenue grew 3.2%. After the quarter, Group 1 sold US dealerships of the Lexus, Acura and Honda brands for about $235 million and agreed to sell four more US dealerships for about $125 million, to lower leverage. In the UK, it agreed with Jaguar Land Rover to keep five JLR dealerships that it had planned to give up. It bought back no shares in the quarter.
• October 27, 2026Conifer Management reported that it owned 2,012,290 shares, about 16.9% of Group 1's shares. It paid about $41.6 million for the shares that it bought after its report of September 29, 2026.

Last earnings

October 28, 2026 (8-K on sec.gov)

Next earnings

Expected about January 28, 2027. The company has not confirmed the date.

• 8-KChange of directors or officers and Change to shareholder rights or bylawsFiled November 10, 2026 · gpi-20261110
• 10-QQuarterly report for the period ended Sep 30, 2026Filed October 29, 2026 · gpi-20260930
• 8-KEarnings releaseFiled October 28, 2026 · Press release and exhibits
• 8-KAcquisition or sale completedFiled October 21, 2026 · gpi-20261019
• 8-KNew material agreement and New debt or financial obligationFiled September 24, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled September 22, 2026 · Read it on sec.gov
• 8-KNew material agreement and Change of directors or officersFiled September 22, 2026 · gpi-20260921
• 8-KNew material agreement and Other company newsFiled September 10, 2026 · Read it on sec.gov
• 8-KEarnings release and Other company newsFiled September 8, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled August 11, 2026 · gpi-20260810

Every filing on SEC EDGAR (CIK 1031203)

• High interest rates and high car prices make cars hard to afford. In Q3 2026, used retail units fell 10.5% and new vehicle gross profit per car fell 5.4% from a year earlier. A weaker consumer or more price competition can cut profits further.
• Debt rose with the Hennessy purchase. Group 1 issued $1.25 billion of new notes at 6.250% and 6.625% in September 2026 and used them to pay for Hennessy on October 19, 2026. Its pro forma net leverage ratio including Hennessy was 4.2 times for the 12 months to June 30, 2026. Higher interest costs lower earnings, and less cash is left for buybacks.
• Group 1 must integrate the 10 large Hennessy dealerships that it bought on October 19, 2026. Hennessy's figures were provided by Hennessy and are not audited, and the price can change after a true-up within 90 days of the closing.
• About 29% of new vehicle units were sold in the UK in Q3 2026. The UK market has its own rules for electric vehicle sales, a different economy and currency risk.
• Car makers decide on franchise approvals, supply of cars and incentives. A change in a car maker's sales model, such as more direct sales, or a supply problem can hurt dealer profits.

Group 1 funds its car inventory with floorplan loans, $2,123.8 million net of $153.0 million in offset accounts at September 30, 2026, which are not in debt here because the cars secure them and they move with inventory. Debt is total debt as the Q3 2026 release states it, $3,886.2 million at September 30, 2026. Read more

Yield at the current rate

0.8% (current annual rate, at today’s price)

Dividend yield

0.8% (last 12 months, at today’s price of $270.27)

Paid per share

$2.15 in the last 12 months (4 payments)

Current annual rate

$2.20 ($0.55 × 4 a year)

Payout ratio

8% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

September 1, 2026, $0.55 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 27.2% a year. From 2015 to 2025, the dividend grew by about 9.2% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.