Revenue: As of FY2026 Q2, the actual value is USD 5.385 B, missing the estimate of USD 5.638 B.

EPS: As of FY2026 Q2, the actual value is USD 8.64, missing the estimate of USD 10.4029.

EBIT: As of FY2026 Q2, the actual value is USD 203.1 M.

Consolidated Financial Performance (Three Months Ended June 30, 2026 vs. 2025)

Revenue

• Total revenues were $5,385.1 million, a -5.6% decrease from $5,703.5 million in the prior-year quarter.
  • New vehicle retail sales were $2,606.1 million, a -4.7% decrease from $2,735.5 million.
  • Used vehicle retail sales were $1,718.3 million, a -7.0% decrease from $1,848.2 million.
  • Used vehicle wholesale sales were $151.5 million, a -7.5% decrease from $163.8 million.
  • Parts and service sales were $692.4 million, a -3.6% decrease from $718.4 million.
  • Finance, insurance and other, net revenues were $216.8 million, a -8.8% decrease from $237.8 million.

Gross Profit

• Total gross profit was $860.6 million, an -8.0% decrease from $935.8 million.
  • New vehicle retail sales gross profit was $173.6 million, a -12.5% decrease.
  • Used vehicle retail sales gross profit was $81.9 million, a -15.0% decrease.
  • Used vehicle wholesale sales gross profit was - $0.7 million.
  • Parts and service sales gross profit was $389.0 million, a -3.4% decrease.
  • Finance, insurance and other, net gross profit was $216.8 million, a -8.8% decrease.

Operating Costs

• Selling, general and administrative (SG&A) expenses were $623.5 million, a -3.5% decrease from $646.1 million.
• SG&A expenses as a % of gross profit increased to 72.4% from 69.0%.
• Adjusted SG&A expenses as a % of gross profit (non-GAAP) increased to 70.8% from 68.7%.
• Depreciation and amortization expense increased to $30.9 million from $28.7 million.
• Asset impairments increased to $1.0 million from $0.4 million.
• Restructuring charges decreased to $2.1 million from $7.6 million.

Operational Metrics

• Income from operations was $203.1 million, a -19.7% decrease from $253.0 million.
• Operating margin was 3.8%, down from 4.4%.
• Adjusted operating margin (non-GAAP) was 4.1%, down from 4.7%.
• Net income from continuing operations was $103.0 million, compared to $139.8 million for the prior-year quarter.
• Adjusted net income from continuing operations (non-GAAP) was $114.9 million, compared to $149.6 million for the prior-year quarter.
• Net income was $103.3 million, a -26.5% decrease from $140.5 million.

Units Sold (Consolidated)

• Retail new vehicles sold were 53,335 units, a -4.4% decrease.
• Retail used vehicles sold were 53,469 units, a -11.2% decrease.
• Wholesale used vehicles sold were 15,315 units, a -10.1% decrease.

Per Unit Metrics (Consolidated)

• New vehicle retail gross profit per retail unit was $3,254, an -8.5% decrease.
• Used vehicle retail gross profit per retail unit was $1,532, a -4.3% decrease.
• F&I gross profit per retail unit (F&I PRU) was $2,030, a -1.0% decrease.

Balance Sheet (as of June 30, 2026 vs. December 31, 2025)

• Cash and cash equivalents increased to $164.5 million from $32.5 million.
• Inventories, net increased to $2,759.6 million from $2,741.3 million.
• Total debt decreased to $3,363.0 million from $3,699.5 million.
• Total equity increased to $2,952.2 million from $2,789.1 million.

Cash Flow

• The provided reference does not include a statement of cash flows; therefore, operating cash flow and free cash flow cannot be extracted.

Segment Performance (U.S. - Three Months Ended June 30, 2026 vs. 2025)

Revenue (U.S.)

• Total revenues were $3,933.4 million, a -5.8% decrease from $4,177.2 million.
  • New vehicle retail sales were $2,023.0 million, a -5.2% decrease.
  • Used vehicle retail sales were $1,112.8 million, a -7.5% decrease.
  • Parts and service sales were $531.0 million, a -4.4% decrease.
  • F&I, net revenues were $178.8 million, a -10.1% decrease.

Gross Profit (U.S.)

• Total gross profit was $658.5 million, a -9.6% decrease from $728.7 million.
  • New vehicle retail sales gross profit was $125.7 million, a -16.5% decrease.
  • Used vehicle retail sales gross profit was $56.3 million, a -18.0% decrease.
  • Parts and service sales gross profit was $295.2 million, a -4.2% decrease.

Operating Costs (U.S.)

• SG&A expenses were $444.3 million, a -5.8% decrease from $471.6 million.
• SG&A as a % of gross profit was 67.5%, up from 64.7%.
• Adjusted SG&A as a % of gross profit (non-GAAP) was 66.4%, up from 64.2%.

Segment Performance (U.K. - Three Months Ended June 30, 2026 vs. 2025)

Revenue (U.K.)

• Total revenues were $1,451.7 million, a -4.9% decrease from $1,526.4 million.
  • New vehicle retail sales were $583.1 million, a -3.2% decrease.
  • Used vehicle retail sales were $605.5 million, a -6.1% decrease.
  • Parts and service sales were $161.3 million, a -0.9% decrease.
  • F&I, net revenues were $38.0 million, a -2.0% decrease.

Gross Profit (U.K.)

• Total gross profit was $202.1 million, a -2.4% decrease from $207.1 million.
  • New vehicle retail sales gross profit was $47.9 million, unchanged.
  • Used vehicle retail sales gross profit was $25.6 million, a -7.7% decrease.
  • Used vehicle wholesale sales gross profit was - $3.2 million, a -59.7% decrease.
  • Parts and service sales gross profit was $93.8 million, a -0.9% decrease.

Operating Costs (U.K.)

• SG&A expenses were $179.2 million, a 2.7% increase from $174.5 million.
• SG&A as a % of gross profit was 88.7%, up from 84.3%.
• Adjusted SG&A as a % of gross profit (non-GAAP) was 85.0%, up from 84.3%.

Outlook / Guidance

Group 1 Automotive, Inc. expects its acquisition of Hennessy Automobile Companies, valued at approximately $1.3 billion, to close by year-end 2026, generating an anticipated $1.7 billion in annual revenues and being immediately accretive to earnings per share. The company plans to fund this acquisition through $1.25 billion of new debt. Additionally, Group 1 Automotive, Inc. is expanding its U.K. network with Chinese automaker Geely, having opened the first of three new franchises in June 2026.