Group 1 Automotive, Inc. · NYSE:GPI
Group 1 Automotive — Q1 2025 Earnings Presentation
36 slides from Group 1 Automotive's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results Investor Presentation April 24, 2025 Group 1 Automotive 2025
Slide 2: Forward looking statements
Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, th
Slide 3: 1Q25 Summary
1Q25 Summary ($MM) Financial Highlights: Total Company Revenues Same Store Revenues + First quarter record total revenues of $5.5B, an increase of 23% YoY $5,505 + Quarterly record total gross profit of $892M, an increase of 20% YoY 23% 7% $4,623 + U.K. quarterly records in total revenues of $1.6 bi
Slide 4: U.K. Restructuring - Completed
U.K. Restructuring - Completed 2024 Full Year Headcount & Costs Removed – £15m Phase 1 Phase 2 CTS & DDC bravoauto Business Functions Business Functions Business Functions Business Functions Executive Team & senior Elimination of duplicated Onshoring of CTS shared Strategic closure of franchise over
Slide 5: U.K. Restructuring in Progress
U.K. Restructuring in Progress 2025 Full Year Headcount & Costs to be Removed ~£22m Phase 3 Phase 4 Phase 5 Business Functions Business Functions Business Functions Refocus corporate functions Alignment of store payroll to Leveraging scale and to decentralise and allow agreed productivity metrics. p
Slide 6: Auto Tariffs
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 changin
Slide 7: Strong Earnings & Significant Cash Flow Generation
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 dividen
Slide 8: Portfolio Optimization
Portfolio Optimization 2019-20 2021 2022 2023 2024 2025 YTD* Acquisitions: Acquisitions: Acquisitions: Acquisitions: Acquisitions: Acquisitions: $430M $2.5B $940M $1.1B $3.9B $0.1B (15 franchises) (58 franchises) (11 franchises) (9 franchises) (84 franchises) (4 franchises) M&A Dispositions: Disposi
Slide 9: Business Diversification
Business Diversification Parts & Service business provides stability in economic cycles Revenue Gross Profit Parts & Service is the heart of Group 1’s >40% 4% Finance & Insurance business model and generates of total gross profit 13% Parts & Service 25% Used Vehicles New Vehicles 1Q25 >100% 35% Fixe
Slide 10: Diversified Geographic Footprint
Diversified Geographic Footprint United Kingdom England & Wales Total U.S. & U.K.* 116 Dealerships 260 Dealerships 33% of New Vehicle Unit Sales* 332 Franchises United States 39 Collision Centers 17 States Maine (4) 35 Brands Lancashire (2) 144 Dealerships New Hampshire (4) Boston Metro (18) Greater
Slide 11: 2025 Brand Diversification
2025 Brand Diversification Revenue Mix Unit Mix Brand diversity reduces risk from evolving 19% 16% consumer preferences 18% 36% 45% 39% 12% 45% Import Luxury Domestic Import Luxury Domestic 9% 9% 8% 7% 7% 7% 5% 5% 3% 3% 2% 2% 2% 1% <1% Other May not add to 100% due to rounding Group 1 Automotive 202
Slide 12: New Vehicle Overview
New Vehicle Overview GPI on Target with the New Vehicle Industry Total New Vehicle U.S. New Market 1Q25 GPI U.S. Same Store Retail Unit Sales: +5% YoY Revenues ($MM)* Size1 (MM) 1Q25 U.S. New Market Unit Sales1: +5% YoY Annual New Vehicle Units +10% 17 18 17 2019-2024 17 17 CAGR 16 16 15 15 14 2024
Slide 13: Used Vehicle Overview
Used Vehicle Overview GPI Outperforms the Used Vehicle Industry 1Q25 GPI U.S. Same Store Retail Unit Sales: +1% YoY 1Q25 U.S. Used Market Unit Sales2: Flat YoY Total Used Vehicle U.S. Used Market Revenues ($MM)* Size1 (MM) 41 Annual Used Vehicle Units U.S. Market Share2 +12% 2019-2024 CAGR 40 40 Ret
Slide 14: Finance & Insurance Overview
Finance & Insurance Overview 1Q25 U.S. Same Store F&I GP PRU: +4% YoY U.S. F&I Gross Profit Per Retail Unit (PRU) Improved F&I Profitability $2,428 $2,338 $2,368 $2,426 via focus on compliance & growth: $2,155 $1,951 + Optimized financing strategy with OEM partners and $1,782 consolidated lender rel
Slide 15: Parts & Service Overview
Parts & Service Overview Strong Financials + Stability of free cash flow through economic cycles + Above sector-average growth through strategic emphasis on customer service Competitive Advantage + Technology: Easy online booking, #1 ranked call center(1) and customer management software improve eff
Slide 16: Parts & Service Overview
Parts & Service Overview Service-to-Service Retention by Model Year* 78% 75% 74% 74% 73% 71% 70% 68% 67% 64% 68% Consolidated P&S 60% Revenue (1) ($MM) +11% 2019-2024 CAGR 2023 2022 2021 2020 2019 *Represents vehicles having 2 service visits in 12 months. 2018 2017 2016 2015 2014 10+ Yrs Average 1Q2
Slide 17: Battery EV Parts & Service Outlook
Battery EV Parts & Service Outlook Our dealerships are equipped to service all powertrain types + GPI is investing in the tooling & + BEVs still require repairs and technician training for all brands maintenance, despite not needing some common low-margin maintenance services such as oil + We are ad
Slide 18: Structurally Lower SG&A % of GP
Structurally Lower SG&A % of GP We continue to fully leverage our scale and cost structure 2025 Total Adjusted SG&A %2019 of GP (2) 1Q19 U.S. Salesperson Productivity (1) Improvement compared to 2019 32% 1Q25 2.5% 4.3% 6.5% Advertising 6.2% Rent & Facility Other 16.5% Personnel 2025 SS Headcount 15.
Slide 19: Group 1 Leadership Team
Group 1 Leadership Team Daryl Kenningham Daniel McHenry Pete DeLongchamps President, CEO and Director SVP and CFO SVP, Financial Services and Manufacturer Relations Joined GP1 July 2011 Joined GP1 February 2007 Joined GP1 July 2004 + 35+ Years Industry Experience + 15+ Years Industry Experience + 35
Slide 20: Group 1's Core Values
Group 1’s Core Values Integrity Transparency Professionalism Teamwork Respect We conduct ourselves with the We promote open and honest We set our standards We put the interest of the group We treat everyone, customers highest level of ethics both communication between each high so that we can exceed
Slide 21: Corporate Responsibility Highlights
Corporate Responsibility Highlights* 1,035 100% 8,000+ 33,000+ EV charging stations of repair centers Solar panels Employee available at Group 1 equipped for hybrids installed at Group 1 training hours locations & EVs locations completed 44% 53% 16,011 80% / 76% of Group 1 Board of Employee Diversit
Slide 22: Appendix
Appendix 2025 Financial Results Group 1 Automotive 2025
Slide 23: Revenue, Adjusted EPS, Adjusted FCF
Revenue* ($MM) Adjusted EPS* Adjusted FCF* ($MM) $45.85 $803 $44.24 $19,934 $39.29 $17,874 $656 $35.02 $16,412 $581 $13,802 $504 $12,044 $426 $10,852 $18.06 $237 $10.93 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 +11% +29% +16% CAGR CAGR CAGR *Based on c
Slide 24: Cash Flow Summary
Cash Flow Summary + $33 million in + $162 million in share buybacks capital expenditures year-to-date representing 3% year-to-date of share count** Adjusted Operating Cash Flow* $916 Adjusted Free Cash Flow* Rent Adjusted Total Liquidity $803 Leverage Ratio ($MM) $755 $720 $683 $656 $581 3.0x $1,216
Slide 25: Income from Operations & Margin Trend
Income from Operations & Margin Trend Adjusted Operating Margin* 6.6% 6.5% 4.9% 5.5% 5.0% 4.4% 4.7% $1,058 3.4% $991 $945 $893 Adjusted Operating Income* ($MM) $526 395 $219 $243 2019 2020 2021 2022 2023 2024 1Q24 1Q25 *See Appendix for Non-GAAP Reconciliations Group 1 Automotive 2025 25
Slide 26: Debt & Interest Rate Exposure
Debt & Interest Rate Exposure Debt Maturities in millions, excludes floorplan + GPI’s total debt at March 31, 2025 including floorplan was $5.0B: $ 952 $919 ~$2,160 million of floorplan debt ~$1,230 million of mortgage debt ~$1,250 million of bond debt ~$40 million of acquisition line debt ~$300 mil
Slide 27: Real Estate Strategy
Real Estate Strategy Dealership Property Breakdown by Region (as of March 31, 2025) GPI is shifting toward owning more real estate: Dealerships Region Owned Leased United States 115 29 + Control of dealership real estate is a strong strategic asset United Kingdom 69 47 Total 184 76 + Ownership means
Slide 28: Exposure to Strong Economic Growth
Exposure to Strong Economic Growth Group 1 will continue to benefit from Texas’ sustained economic growth + Texas continues to be the fastest growing state in the U.S. (1) + GPI is the #1 Auto Retailer + Texas is the leading destination for corporate relocation and expansion projects. (2) in Texas +
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2025 Financial Results Group 1 Automotive 2025
Slide 30: Non-GAAP Financial Measures, Same Store Data, and Other Data
Non-GAAP Financial Measures, Same Store Data, and Other Data In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions
Slide 31: Reconciliation: Adjusted Income from Operations (Non-GAAP)
Reconciliation: Adjusted Income from Operations (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 1Q24 1Q25 As Reported Income from $358 $496 $884 $1,091 $969 $909 $243 $234 Operations Asset impairments and 22 27 2 2 34 40 _ 1 accelerated depreciation (Gain) loss on real estate and (4) (5) (
Slide 32: Reconciliation: Adjusted Cash Flow (Non-GAAP)
Reconciliation: Adjusted Cash Flow (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 1Q24 1Q25 Operating Cash Flow (GAAP) $371 $805 $1,260 $586 $190 $586 $254 $159 Change in Floorplan notes payable - credit facilities and other, excluding (43) (314) (491) 320 505 133 (45) (19) floorplan offs
Slide 33: Reconciliation: Adjusted Continuing Ops Earnings Per Share
Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP) (Unaudited) 1Q24 1Q25 As Reported EPS from Continuing Ops $10.76 $9.64 After Tax Adjustments: Asset impairments and accelerated depreciation 0.02 0.05 (Gain) loss on real estate and dealership transactions (1.68) (0.46) Catastroph
Slide 34: Reconciliation: Adjusted Total Earnings Per Share (Non-GAAP)
Reconciliation: Adjusted Total Earnings Per Share (Non-GAAP) (Unaudited) 2019 2020 2021 2022 2023 2024 As Reported EPS $9.34 $15.51 $30.11 $47.14 $42.73 $36.81 After Tax Adjustments: Asset impairments and accelerated depreciation 0.94 1.69 0.07 0.10 1.82 2.26 (Gain) loss on real estate and dealershi
Slide 35: Reconciliation: Adjusted SG&A (Non-GAAP)
Reconciliation: Adjusted SG&A (Non-GAAP) (Unaudited, $MM) 1Q19 1Q25 SG&A Expenses – GAAP $315 $617 Gain (loss) on real estate and dealership transactions 5 8 Catastrophic Events (2.0) - Legal items and other professional fees (2) (3) Severance Costs - (1) Acquisitions costs - (1) SG&A Expenses – Non
Slide 36: Thank You
Thank You Group 1 Automotive 2025