Group 1 Automotive reported third-quarter 2026 revenue of $5.4 billion, down from $5.8 billion a year earlier. Diluted earnings per share from continuing operations were $8.59, or $9.36 on an adjusted basis.
The company also completed a 10-dealership acquisition in the Atlanta area and is selling other stores as part of a plan to reshape its portfolio and reduce leverage.
Key details
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Revenue and earnings: Third-quarter revenue was $5.4 billion, compared with $5.8 billion in the same quarter last year—a decline of about 7%. Diluted earnings per share from continuing operations were $8.59. Adjusted diluted earnings per share from continuing operations were $9.36; the adjusted figure is a non-GAAP measure.
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Atlanta expansion: Group 1 recently completed its purchase of 10 dealerships from Hennessy Automobile Companies. The stores are described as high-volume and high-margin, and the deal brings Group 1’s Atlanta-area presence to 15 dealerships. The company said the acquisition fits its focus on premium-brand stores in growing markets where it already has a strong local presence.
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Store sales and leverage reduction: Group 1 has completed U.S. dealership sales generating about $235 million since the end of the quarter. It expects a further $125 million from sales under definitive agreements, for approximately $360 million in total proceeds. The additional $125 million is expected, not yet completed. The company said the dispositions support its goal of reducing leverage and selling stores that do not fit its strategy.
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U.S. service business: Customer-pay revenue and repair-order count reached all-time highs. On a same-store basis, U.S. customer-pay revenue rose 3% year over year and repair orders increased 4%. Group 1 said year-over-year growth improved across key same-store operating measures compared with the second quarter, despite challenging market conditions.
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Cost actions: The company said it continued to benefit from cost-cutting measures taken earlier in the year.
What changes for investors
Group 1 is expanding in Atlanta through a sizable acquisition while selling other U.S. stores and directing the proceeds toward lower leverage. The company’s stated strategy is to concentrate on larger, more profitable dealerships in growing markets.