| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 5.4K | 0.4% | 5.6% |
| Total Income | 5.4K | 0.4% | 5.6% |
| Expenditure | 5.2K | 0.3% | 4.9% |
| PBT | 134.40 | 21.2% | 26.9% |
| Net Profit | 103.30 | 20.7% | 26.5% |
| OPM | 3.77% | 0.72pp | 0.66pp |
| NPM | 1.92% | 0.49pp | 0.55pp |
| EPS | 8.66 | 20.3% | 20.1% |
Group 1 Automotive Reports Q2 2026 Financial Results and Agreement to Acquire Hennessy Automobile Companies
30 Jul 2026 · 30 Jul, 3:56 pm
Summary
Group 1 Automotive reported second quarter 2026 total revenues of $5.4 billion, a 5.6% decrease year-over-year, with net income from continuing operations at $103.0 million. Diluted earnings per share from continuing operations were $8.62, down from $10.77 in the prior year, reflecting what management described as softened results due to consumer affordability issues. Despite the headwinds, the company successfully executed strategic initiatives including expense reductions and advanced its corporate rebranding. A significant development was the announcement of an agreement to acquire Hennessy Automobile Companies for approximately $1.3 billion, which is expected to add $1.7 billion in annual revenues and strengthen the company's presence in the Atlanta market.
Key Highlights
- 1
Total revenues for the second quarter of 2026 were $5.4 billion, a decrease of 5.6% compared to $5.7 billion in the prior-year quarter.
- 2
Net income from continuing operations for the current quarter was $103.0 million, down from $139.8 million in the prior-year quarter.
- 3
Diluted earnings per common share from continuing operations were $8.62 for the second quarter of 2026, compared to $10.77 in the prior-year quarter.
- 4
The Company announced an agreement to acquire Hennessy Automobile Companies, expected to add approximately $1.7 billion in annual revenues.
- 5
U.S. current quarter adjusted SG&A as a % of gross profit improved sequentially 400+ basis points to 66.4%.
- 6
Parts & service gross profit decreased by 3.4% to $389.0 million, while the gross margin remained strong at 56.2%.
Management Comments
Daryl Kenningham
While our second quarter results softened due to consumer affordability issues, we continued to execute against the strategic initiatives that will strengthen Group 1 over the long term. During the quarter in the U.S., we successfully completed our previously announced $50 million annualized expense reduction initiative, exceeding our targets. We also continued to invest in our future through strategic dealership acquisitions and dispositions, advanced our corporate rebranding to more than 60% completion, and expanded our virtual F&I platform to more than 40% of our stores. We remain focused on disciplined execution that will continue to drive sustainable value for our shareholders. To that end, earlier today we announced our intent to acquire Hennessy Automobile Companies which, along with two additional dealership acquisitions, will boost our presence to 15 dealerships in Atlanta. The purchase of these high-volume dealerships in a tremendous growth market is the ideal execution of our cluster strategy and bolsters Group 1’s position for the long term.
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