Group 1 Automotive : 1Q25 Financial Results and Company Overview - dated 4/24/2025

Published: 2025-04-24 05:16:04 ET GPI

First Quarter

2025 Financial Results

Investor Presentation

April 24, 2025

Group 1 Automotive 2025

1Q25 Summary

($MM)

Financial Highlights:

Total Company Revenues

$5,505

23%

20% $692

$4,471$226 20%

Same Store Revenues

7% $4,623

$4,371

5% $590

$561

9% $202

+ First quarter record total revenues of $5.5B, an increase of 23% YoY

+ Quarterly record total gross profit of $892M, an increase of 20% YoY

U.K. quarterly records in total revenues of $1.6 billion and gross profit of

$217 million, a 110% and 92% increase YOY, respectively

U.K. SG&A as a % of gross profit reduced to pre-acquisition levels

$576

$189$1,755

24%

$1,417

$185

$1,391

3% $1,437

+ First quarter diluted EPS from continuing ops was $9.64, a 10% decline

YoY and adjusted diluted EPS from continuing ops was $10.17*, an

increase of 7% YoY

Strategic Highlights:

23% $2,680

$2,183

1Q241Q25

$2,131 7% $2,278

1Q241Q25

New Vehicle Used Vehicle Retail Finance & Insurance Parts & Service

*See Appendix for Non-GAAP Reconciliations **As of April 23, 2025

Group 1 Automotive 2025

U.K. Restructuring - Completed

2024 Full Year Headcount & Costs Removed - £15m

Phase 1

Phase 2

Business Functions

Executive Team & senior

Elimination of duplicated

franchise oversight

corporate functions / roles

functions

Actual Savings

21 heads | £4.4m

101 heads | £4.7m

CTS & DDC

Business Functions

Onshoring of CTS shared services from India to Maidstone & separation of Inchcape DDC services in the Philippines

Actual Savings

£2.0m

bravoauto

Business Functions

Strategic closure of Inchcape legacy standalone used car locations

Actual Savings

84 heads | £4.2m

Net headcount savings of

68 heads not included on

UK Payroll

Timing

Structure completed

Structure largely

Structure completed

November 30, 2024

completed December 31,

December 31, 2024

2024

Group 1 Automotive 2025

Timing

Structure completed

December 31, 2024

U.K. Restructuring in Progress

2025 Full Year Headcount & Costs to be Removed ~£22m

Phase 3

Business Functions

Refocus corporate functions to decentralise and allow greater staff autonomy

Target Savings*

70 heads | £5m

1Q25 Update

125 heads | £5m

Partially completed in 1Q25

Timing

Structure to be completed by

April 30, 2025

*As noted in our Analyst Day presentation dated February 13, 2025

Phase 4

Business Functions

Alignment of store payroll to agreed productivity metrics. Offset additional employer taxes resulting from last UK Government budget.

Target Savings*

300 heads | £8m* - £12m

1Q25 Update

330 heads | £8m - £12m

Partially completed in 1Q25

Timing

Structure to be completed by April 30, 2025

Phase 5

Business Functions

Leveraging scale and procurement capacity to drive efficiencies

Target Savings*

Demo & Fleet £5m Procurement efficiency £5m Store closures £1-2m

Partially completed in 1Q25

Timing

Structure to be largely completed by June 30, 2025

Group 1 Automotive 2025

Auto Tariffs

"Our U.S. business performed well in the current quarter, as we continued to execute while navigating the uncertainty that has arisen from ongoing tariff and trade policy changes. We are monitoring these developments and are prepared to be operationally nimble in the face of the changing landscape," said

Daryl Kenningham, Group 1's President and Chief Executive Officer.

Business Impacts:

2024 GPI New Vehicle Unit Sales by Production Country

9% 6%

11%

51%

10%

13%

U.S.

Mexico

Canada

Japan

Other

Group 1 Automotive 2025

We are a

Fortune 500

company,

ranked #229

Strong Earnings &

Portfolio

Parts & Service

Building

Full

Significant

Optimization

Growth

Local Scale

Rooftop Potential

Cash Flow Generation

+ Continued strong EPS:

Balanced M&A, share

Outperformance of the peer

Provides a competitive

Optimizing operations at

29% CAGR

repurchases and dividends

group's average same store

advantage through more

each rooftop

over 2019 - 2024

growth rate over several of

focused market

+ $8.5 billion in acquired

the past years

representation and

Standardization of key

+ Adjusted free cash flows of

revenues since the

improved customer

common processes and

beginning of 2021

Numerous innovations have

experience

shared business resources

$504 million in FY 2024 and

driven this consistent

structurally lowers

$105 million in 1Q25(1)

Strategic disposition of

outperformance:

Leverages marketing

operating costs

smaller, less profitable

efforts to drive business

stores

4-Day work week is

within market / dealership

Scale amplifies the impact

differentiator when

clusters

of operational excellence,

+ Flexibility to engage in M&A

recruiting; U.S. same store

allowing us to unlock

due to low rent-adjusted

service tech headcount

+ Offers a unique value

additional value

leverage of 2.7x, as of

increased 8% versus March

proposition by giving

March 31, 2025

2024

customers various GP1

options within a cluster

~5.8 million shares

AI appointment setting has

repurchased since the

driven a 40% penetration in

Centralized used vehicle

beginning of 2021

online appointment making

inventory, reconditioning

representing 32% of our

and positioning, reducing

share count

costs and increasing

throughput

Group 1 Automotive 2025

Portfolio Optimization

2019-20

2021

2022

2023

2024

2025 YTD*

Acquisitions:

$430M

$2.5B

$940M

$1.1B

$3.9B

$0.1B

(15 franchises)

(58 franchises)

(11 franchises)

(9 franchises)

(84 franchises)

(4 franchises)

M&A

Dispositions:

$300M

$155M

$265M(1)

$420M

$450M

$230M

Capex:

$172M

$100M

$113M

$139M

$179M

$33M

Dividends

$1.69

$1.33

$1.50

$1.80

$1.88

$0.50

Cash paid per share

Share Reduction:

≈ 5%

≈ 6%

Buybacks

Shares Repurchased:

0.9M shares at avg.

1.1M shares at avg.

price of $92.98 for

price of $190.82 for

total of $82M

total of $211M

Share Reduction:

≈ 18%

≈ 5%

≈ 4%

≈ 3%

Shares Repurchased:

3.0M shares at avg.

0.7M shares at avg.

0.5M shares at avg.

0.4M shares at avg.

price of $172.54

price of $236.78 for

price of $311.67 for

price of $417.13 for

for total of $521M

total of $173M

total of $162M

Group 1 Automotive 2025

Business Diversification

Parts & Service business provides stability in economic cycles

is the heart of Group 1's

>40%

Revenue

Parts & Service

business model and generates

of total gross profit

13%

1Q25

>100%

35%

Fixed Absorption

+ Parts & Service is a hedge to economic cycles.

Historically declined around mid-single digits

during a recession, which provides stability to help

49%

offset the cyclical nature of new vehicle sales.

May not add to 100% due to rounding; based on 1Q25 results

Fixed absorption calculation: parts & service gross profit divided by total company fixed costs plus parts & service selling expenses

Group 1 Automotive 2025

Gross Profit

Finance & Insurance

25%

Parts & Service

Used Vehicles

New Vehicles

43%

11%

21%

Diversified Geographic Footprint

Total U.S. & U.K.*

260 Dealerships

332 Franchises

United States

39 Collision Centers

17 States

Maine (4)

35 Brands

144 Dealerships

New Hampshire (4)

Boston Metro (18)

67% of New Vehicle Unit Sales*

NYC Metro (3)

Philadelphia Metro (1)

Washington DC Metro (7)

Atlantic City (2)

Sacramento (2)

Kansas City (3)

Santa Fe (3)

Charlotte (1)

Los Angeles (5)

Amarillo (1)

Tulsa (4)

Augusta (1)

Columbia (1)

Albuquerque (4)

Oklahoma City (9)

Atlanta (2)

Hilton Head (3)

Lubbock (6)

Columbus (4)

Dallas-Ft Worth (8)

Shreveport (2)

Mobile (1)

Pensacola/Panama City (3)

El Paso (6)

Gulfport (1)

Austin (7)

New Orleans (2)

San Antonio (4)

Houston (19)

Fort Myers (1)

Corpus Christi (1)

Miami (1)

*As of April 24, 2025; Sales based on YTD results as of March 31, 2025.

Group 1 Automotive 2025

United Kingdom

England & Wales

116 Dealerships

33% of New Vehicle Unit Sales*

Lancashire (2)

Merseyside (5)

Greater Manchester (6)

Derbyshire (4)

Lincolnshire (1)

North Wales (1)

Cheshire (8)

Nottinghamshire (3)

Leicestershire (3)

Shropshire (2)

Cambridgeshire (5)

Warwickshire (2) Bedfordshire (1)

Gloucestershire (1)

Hertfordshire (12)

Oxfordshire (1)

Berkshire (4)

Greater London (7)

Wiltshire (2)

Surrey (6)

Hampshire (5)

Devon (1)

Dorset (2)

West Sussex (1)

Disclaimer

Group 1 Automotive Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 09:15 UTC.