Group 1 Automotive, Inc. has reported its fourth quarter and full year 2025 financial results, highlighting various key performance metrics. The company achieved record full-year revenues of $22.6 billion, reflecting a 13.2% increase over the prior year. Additionally, the full-year gross profits increased by 11.8% to $3.6 billion, driven by record parts and service gross profits of $1.6 billion, marking a 15.9% increase over the prior year.
In the fourth quarter of 2025, total revenues were reported at $5.6 billion, representing a 0.6% increase compared to the same period in 2024. However, net income from continuing operations for the current quarter was $43.0 million, down from $94.6 million in the prior-year quarter. Adjusted net income from continuing operations also saw a decline, amounting to $105.0 million compared to $133.9 million in the prior-year quarter.
The company repurchased approximately 10.1% of its outstanding common shares during the full year 2025. It also engaged in corporate development activities, including acquisitions and integrations of dealership operations with expected annual revenues of approximately $640 million.
Furthermore, Group 1 Automotive reported certain changes in selling, general, and administrative (SG&A) expenses. For the full year 2025, SG&A expenses as a percentage of gross profit increased to 70.3%, up from 69.7% in the prior year. Adjusted SG&A expenses as a percentage of gross profit also saw an increase to 70.2%, compared to 69.1% in the prior year.
The company's financial report also detailed the disposition of certain dealerships and franchise terminations during the current year, which led to annualized revenues associated with these actions totaling approximately $775 million.
Moreover, in the U.K., Group 1 Automotive recognized $8.1 million in restructuring charges in the fourth quarter of 2025 as part of a U.K.-wide restructuring plan. The company expects to undertake additional actions in 2026 to optimize operations and reduce costs further.
Group 1 Automotive's press release also highlighted its share repurchase activities. During the current quarter, the company repurchased 755,792 shares, amounting to $305.0 million. For the full year 2025, the company repurchased 1,343,229 shares, representing approximately 10.1% of the outstanding common shares.
The company's adjusted diluted earnings per common share from continuing operations for the full year 2025 increased by 3.8% to $40.71, compared to $39.21 for the prior year. These figures provide a comprehensive overview of the financial performance and strategic activities of Group 1 Automotive, Inc. in 2025. As a result of these announcements, the company's shares have moved -0.51% on the market, and are now trading at a price of $395.06. Check out the company's full 8-K submission here.
