■Group 1 Automotive Reports 2024 Fourth Quarter Financial Results and Record Full Year Revenues of $19.9 billion!

■ Group 1 Automotive (NYSE: GPI) reported its Q4 and full-year 2024 financial results, achieving record annual revenues of $19.9 billion, up 11.5% from 2023. The company sold a record 413,364 retail new and used vehicles, marking a 13.8% increase year-over-year.

■ Q4 2024 highlights include total revenues of $5.5 billion (up 23.8%) and gross profit of $879.2 million (up 20.3%). Adjusted diluted EPS from continuing operations was $10.02, increasing 5.5% from Q4 2023. However, net income from continuing operations decreased 13.1% to $94.6 million.

■ The company completed significant acquisitions in 2024, including Inchcape Retail in the UK, adding 54 dealerships. During Q4, GPI repurchased 80,300 shares for $32.0 million and maintains $476.1 million remaining in its share repurchase program.

Positive

• Record annual revenues of $19.9B, up 11.5% YoY
• Q4 gross profit reached record $879.2M, up 20.3% YoY
• Record retail vehicle sales of 413,364 units, up 13.8% YoY
• Parts & service revenue growth of 12.2% in Q4
• Successful acquisition integration adding $3.9B in expected annual revenues

Negative

• Q4 net income decreased 13.1% YoY to $94.6M
• Full-year net income down 17.4% to $497.0M
• New vehicle gross profit per unit declined 12.0% in Q4
• SG&A expenses as % of gross profit increased 316 basis points in Q4
• UK operations hampered by system integration issues

Insights

Group 1 Automotive's Q4 2024 results reveal a complex picture of expansion-driven growth coupled with margin pressures. The 23.8% revenue growth to $5.5B masks underlying challenges, as evidenced by the 316 basis point increase in SG&A as a percentage of gross profit to 69.9%.

The company's aggressive acquisition strategy, particularly the Inchcape Retail integration, represents a significant operational challenge. The $16.7M in restructuring charges and DMS conversion issues signal near-term integration headwinds, but the expanded U.K. presence provides valuable geographic diversification and scale benefits.

Key operational metrics show concerning trends:

• New vehicle gross profit per unit declined 12.0% to $3,540
• F&I gross profit per unit dropped 3.7% to $1,991
• Parts & service gross margin contracted slightly by 40 basis points to 54.5%
• The company's capital allocation strategy remains balanced, with $161.6M spent on share repurchases during 2024 while maintaining acquisition capacity. The remaining $476.1M authorization for buybacks provides flexibility for opportunistic capital returns.

The strategic additions of premium brands like Lexus, Honda, Mercedes-Benz and Toyota in key U.S. markets position Group 1 well for long-term growth, despite near-term margin pressures. The focus on parts & service revenue growth (+12.2%) demonstrates strong execution in this high-margin segment, which should help offset pressure on vehicle sales margins.

• Current quarter diluted earnings per common share from continuing operations of $7.08 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $10.02
• Full year all-time record retail new and used vehicle units sold of 413,364, a 13.8% increase over the comparable prior year period
• Gross profit of $879.2 million from total revenues of $5.5 billion, both quarterly records, and a 20.3% and 23.8% increase, respectively, over the comparable prior year period

HOUSTON, Jan. 29, 2025 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"),?a Fortune 250 automotive retailer with 259 dealerships located in the U.S. and U.K., today reported financial results for the fourth quarter of 2024 ("current quarter") and full year 2024 ("current year").

"Our U.S. team continues to execute at a high level. Our parts and service revenue growth of 12.2% was the best quarter in the last four quarters. SG&A leverage was outstanding, and our new vehicle PRUs were up sequentially on a U.S. as reported basis. Also, we are realizing the benefits of some exceptional acquisitions and prudent divestitures. Over the last year, because of our excellent relationships with our OEM partners, we've added great brands like Lexus, Honda, Mercedes-Benz, and Toyota in some great U.S. markets," said Daryl Kenningham, Group 1's President and Chief Executive Officer.

"Our U.K. team is better positioned today than at any time in our history, with exceptional brand partners and a portfolio of dealerships that provide us geographic diversification across a broader U.K. market," said Daryl Kenningham. "Our ongoing restructuring actions to integrate Inchcape Retail stores which began in the fourth quarter of 2024 will ultimately position us to capture the full value of this acquisition."

Reconciliations for financial results, non-GAAP metrics, and diluted earnings per common share between? continuing and discontinued operations are included in the accompanying financial tables.

Current Quarter Results Overview

• Total revenues for the current quarter were $5.5 billion, a 23.8% increase compared to $4.5 billion for the fourth quarter of 2023 ("prior year quarter").
• Net income from continuing operations for the current quarter was $94.6 million, a 13.1% decrease compared to $108.8 million for the prior year quarter.
• Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $133.9 million, a 2.1% increase compared to $131.2 million for the prior year quarter. Net income from continuing operations for the current quarter included impairment charges of $33.0 million primarily attributable to franchise rights intangible assets for four dealerships in the U.S.
• Current quarter diluted earnings per common share from continuing operations was $7.08, a 10.1% decrease compared to $7.87 for the prior year quarter. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $10.02, a 5.5% increase compared to $9.50 for the prior year quarter.