Group 1 Automotive, Inc. · NYSE:GPI
Group 1 Automotive — Q2 2025 Earnings Presentation
35 slides from Group 1 Automotive's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results Investor Presentation July 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: 2Q25 Summary
2Q25 Summary ($MM) Financial Highlights: Total Company Revenues + 2Q25 total revenues and gross profit of $5.7B and $936M, both quarterly Same Store Revenues records, increased 21% and 22% YoY, respectively. $5,704 + 2Q25 same store revenues increased 7% in the U.S. and 6% in the U.K. 21% + 2Q25 tot
Slide 4: U.K. Restructuring - Completed
U.K. Restructuring - Completed 2024 Full Year Headcount & Annualized Costs Reductions – £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
Slide 5: U.K. Restructuring in Progress
U.K. Restructuring in Progress 2025 Full Year Headcount & Annualized Cost Reductions ~£27m 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 met
Slide 6: Auto Tariffs
Auto Tariffs Having successfully navigated challenging market conditions in the past, we are well-prepared to remain agile in response to the latest tariff and policy changes. Our proven business model and adaptive strategy enable us to respond swiftly and manage costs effectively. 2024 GPI U.S. New
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: $0.4B $2.5B $0.9B $1.1B $3.9B $0.4B (15 franchises) (58 franchises) (11 franchises) (9 franchises) (84 franchises) (9 franchises) M&A Dispositions: Disposi
Slide 9: 2025 U.S. Acquisitions
2025 U.S. Acquisitions Three Luxury dealerships with expected annual revenues of $330 million + Portfolio Optimization: Following recent disposals of smaller, lower volume dealerships, these acquisitions include higher throughput. + Highly desirable brands: Acquisitions include 1 Lexus, 1 Mercedes-B
Slide 10: Business Diversification
Business Diversification Parts & Service business provides stability in economic cycles Revenue Gross Profit Parts & Service is the heart of Group 1’s >40% 4% Finance & Insurance business model and generates of total gross profit 13% Parts & Service 25% Used Vehicles New Vehicles 2Q25 Fixed Absorpti
Slide 11: Diversified Geographic Footprint
Diversified Geographic Footprint United Kingdom England & Wales Total U.S. & U.K.* 113 Dealerships 258 Dealerships 29% of New Vehicle Unit Sales* 322 Franchises United States 39 Collision Centers 17 States Maine (4) 36 Brands Lancashire (2) 145 Dealerships New Hampshire (4) Boston Metro (18) Greater
Slide 12: 2Q25 YTD Brand Diversification
2Q25 YTD Brand Diversification Revenue Mix Unit Mix Brand diversity reduces risk from evolving 19% 17% 19% consumer preferences 37% 45% 38% 44% 12% Import Luxury Domestic Import Luxury Domestic 8% 8% 8% 7% 7% 6% 6% 5% 3% 3% 2% 2% 2% 1% <1% Other May not add to 100% due to rounding Group 1 Automotive
Slide 13: New Vehicle Overview
New Vehicle Overview GPI Outperforms the New Vehicle Industry Total New Vehicle U.S. New Market 2Q25 GPI U.S. Same Store Retail Unit Sales: +6% YoY Revenues ($MM)* Size1 (MM) 2Q25 U.S. New Market Unit Sales1: +3% YoY Annual New Vehicle Units +10% 17 18 17 2019-2024 17 17 CAGR 16 16 15 15 14 2024 9,9
Slide 14: Used Vehicle Overview
Used Vehicle Overview GPI on Target with Used Vehicle Industry 2Q25 GPI U.S. Same Store Retail Unit Sales: +4% YoY 2Q25 U.S. Used Market Unit Sales3: +4% 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 Retai
Slide 15: Finance & Insurance Overview
Finance & Insurance Overview 2Q25 U.S. Same Store F&I GP PRU: +4% YoY U.S. F&I Gross Profit Per Retail Unit (PRU) $2,446 Improved F&I Profitability $2,428 $2,338 $2,368 via focus on compliance & growth: $2,155 $1,951 + Optimized financing strategy with OEM partners and $1,782 consolidated lender rel
Slide 16: Parts & Service Overview
Parts & Service Overview Strong Financials + Stability of free cash flow through economic cycles + Above sector-average growth through strategic emphasis on customer service Competitive Advantage + Technology: Easy online booking, #1 ranked call center(1) and customer management software improve eff
Slide 17: Parts & Service Overview
Parts & Service Overview Service-to-Service Retention by Model Year* 78% 75% 74% 74% 69% 73% 71% 71% 69% 67% 69% Consolidated P&S 61% Revenue (1) ($MM) +11% 2019-2024 CAGR 2024 2023 2022 2021 2020 *Represents vehicles having 2 service visits in 12 months. 2019 2018 2017 2016 2015 10+ Yrs Average 2Q2
Slide 18: 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 19: 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) U.S. Salesperson Productivity (1) 2Q19 Improvement compared to 2019 26% 2Q25 2.5% 4.3% Advertising 6.1% Rent & Facility 5.7% Other 15.9% Personnel 2025 SS Headcount 14.
Slide 20: Group Leadership Team
Group 1 Leadership Team Daryl Kenningham Pete DeLongchamps Gillian Hobson President, CEO and Director SVP, Financial Services and SVP, Chief Legal Officer and Manufacturer Relations Corporate Secretary Joined GP1 July 2011 Joined GP1 July 2004 Joined GP1 January 2023 + 35+ Years Industry Experience
Slide 21: 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 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 + $83 million in + $167 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% 5.5% 4.9% 5.0% 4.7% 4.5% $1,058 3.4% $991 $945 $893 Adjusted Operating Income* ($MM) $526 $508 $453 395 2019 2020 2021 2022 2023 2024 2Q24 YTD 2Q25 YTD *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 June 30, 2025 including floorplan was $5.2B: ~$1,945 million of floorplan debt $ 1,415 ~$1,220 million of mortgage debt ~$1,250 million of bond debt $926 ~$410 million of acquisition line debt ~$350 m
Slide 27: Real Estate Strategy
Real Estate Strategy Dealership Property Breakdown by Region (as of June 30, 2025) GPI is shifting toward owning more real estate: Dealerships Region Owned Leased United States 118 27 + Control of dealership real estate is a strong strategic asset United Kingdom 66 47 Total 184 74 + Ownership means
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2025 Financial Results Group 1 Automotive 2025
Slide 29: 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 30: Reconciliation: Adjusted Income from Operations (Non-GAAP)
Reconciliation: Adjusted Income from Operations (Non-GAAP) 2Q24 2Q25 (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 YTD YTD As Reported Income from $358 $496 $884 $1,091 $969 $909 $484 $487 Operations Asset impairments and 22 27 2 2 34 40 4 2 accelerated depreciation (Gain) loss on real estate and (
Slide 31: Reconciliation: Adjusted Cash Flow (Non-GAAP)
Reconciliation: Adjusted Cash Flow (Non-GAAP) 2Q24 2Q25 (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 YTD YTD Operating Cash Flow (GAAP) $371 $805 $1,260 $586 $190 $586 $130 $410 Change in Floorplan notes payable - credit facilities and other, excluding (43) (314) (491) 320 505 133 196 (58) floorpl
Slide 32: Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP)
Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP) (Unaudited) 2Q24 2Q25 As Reported EPS from Continuing Ops $10.15 $10.77 After Tax Adjustments: Asset impairments and accelerated depreciation 0.21 0.08 (Gain) loss on real estate and dealership transactions (1.17) 0.01 Catastrophi
Slide 33: 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 34: Reconciliation: Adjusted SG&A (Non-GAAP)
Reconciliation: Adjusted SG&A (Non-GAAP) (Unaudited, $MM) 2Q19 2Q25 SG&A Expenses – GAAP $327 $646 Gain (loss) on real estate and dealership transactions - (1) Catastrophic Events (4) (1) Legal items and other professional fees - (1) Severance Costs - - Acquisitions costs - (1) SG&A Expenses – Non-G
Slide 35: Thank You
Thank You Group 1 Automotive 2025