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Group 1 Q1 Earnings Estimates Miss on Lower Volumes and Softer F&I
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Key Takeaways
GPI Q1 EPS fell 14.8% to $8.66, missing estimates as revenues dipped 1.8% to $5.41B.
Group 1 faced lower vehicle volumes, partly offset by higher pricing and resilient aftersales margins.
GPI's parts and service gross profit rose 5%, while U.K. operations delivered record gross profit.
Group 1 Automotive, Inc. (GPI - Free Report) reported first-quarter 2026 adjusted earnings of $8.66 per share, which declined 14.8% year over year and missed the Zacks Consensus Estimate of $8.93 by 3%. Total revenues were $5.41 billion, which decreased 1.8% year over year and came below the consensus mark of $5.50 billion by 1.76%.
Results reflected continued pressure on retail vehicle volumes, partly offset by steadier pricing and a resilient aftersales business. A key highlight was parts and service gross margin, which reached 56.8% in the quarter.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Gross profit totaled $877.9 million, edging down 1.6% from the year-ago quarter. The performance underscored how aftersales continues to stabilize results as vehicle retail activity normalizes.
Parts and service gross profit rose 5% year over year to $400 million, aided by a 170-basis-point improvement in parts and service gross margin to 56.8%.
Group 1 Sees Lower Volumes as Pricing Stays Firm
On the retail new-vehicle side, sales fell 4.4% from the prior-year quarter’s level to $2.56 billion, units sold fell 6.6% year over year to 52,398, while gross profit per retail unit slipped 2.5% to $3,296. The average selling price per new vehicle increased 5.1% to $52,415, partially cushioning the revenue impact from lower volumes.
Used-vehicle retail sales rose 1.1% from the year-ago period to $1.77 billion. Units sold declined 4.4% to 56,985, and used retail gross profit per unit decreased 1.9% to $1,540. Still, the average used-vehicle selling price rose 6% to $31,204, reflecting a higher price environment even as unit counts moderated.
Used-vehicle wholesale sales declined 1.4% year over year to $149.5 million. The unit generated gross profit of $1.5 million, flat year over year. In the Parts and Service business, the top line increased 1.8% to $704.4 million. Revenues from the Finance, Insurance and Other business were $215.9 million, down 4.6% from the year-ago quarter’s level.
GPI’s U.S. Operations Record Sales & Profit Decline
In the reported quarter, revenues from the U.S. business segment fell 4% year over year to $3.76 billion. The segment’s gross profit declined 4.1% to $647.2 million. During the quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 34,666, 36,097 and 9,868, respectively.
Group 1’s U.K. Operations Post Record Quarterly Gross Profit
The U.K. segment generated revenues of $1.64 billion, up 3.8% year over year, while gross profit increased 6.3% to a record $230.6 million in the quarter. Within the market, parts and service sales climbed 10.2% to $177.3 million, and parts and service gross profit rose 13.3% to $102.5 million, supporting the overall improvement. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 17,732, 20,888 and 5,534, respectively.
The strength across several U.K. business lines in the quarter, including progress in used vehicles and F&I on a same-store basis, alongside ongoing operational initiatives aimed at expanding service capacity and throughput, resulted in improvement.
Group 1 Targets Efficiency, Reshapes Portfolio
In the United States, the company implemented staffing reductions and discretionary expense actions, and expects to remove $50 million of annual costs from U.S. operations through headcount and contract-related savings.
The quarter also included portfolio activity. Group 1 acquired one Skoda and two Volkswagen dealerships in the United Kingdom, expected to add about $135 million in annual revenues, while disposing of two Mercedes-Benz dealerships in California and one Volkswagen and one Skoda dealership in the United Kingdom that collectively represented about $570 million in annual revenues. Subsequent to quarter-end, the company executed an agreement with Geely to expand its U.K. network through three new locations.
GPI’s Cash Flow, Liquidity and Leverage Update
As of March 31, 2026, Group 1’s cash and cash equivalents totaled $41.7 million, up from $32.5 million as of Dec. 31, 2025. Total debt was $3.14 billion at March 31, 2026, down from $3.70 billion as of Dec. 31, 2025, while floorplan notes payable (net) increased to $2.24 billion from $1.92 billion over the same period.
The company reported total liquidity of $714.3 million at quarter-end, comprising accessible cash and availability on the acquisition line, and noted a rent-adjusted leverage ratio of 3.09x. The quarter included $53 million of capital expenditures and $72.4 million of share repurchases, with $306.3 million remaining under the authorized buyback program as of March 31, 2026.
Mobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
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Group 1 Q1 Earnings Estimates Miss on Lower Volumes and Softer F&I
Key Takeaways
Group 1 Automotive, Inc. (GPI - Free Report) reported first-quarter 2026 adjusted earnings of $8.66 per share, which declined 14.8% year over year and missed the Zacks Consensus Estimate of $8.93 by 3%. Total revenues were $5.41 billion, which decreased 1.8% year over year and came below the consensus mark of $5.50 billion by 1.76%.
Results reflected continued pressure on retail vehicle volumes, partly offset by steadier pricing and a resilient aftersales business. A key highlight was parts and service gross margin, which reached 56.8% in the quarter.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote
GPI’s Gross Profit Mix Leans on Aftersales
Gross profit totaled $877.9 million, edging down 1.6% from the year-ago quarter. The performance underscored how aftersales continues to stabilize results as vehicle retail activity normalizes.
Parts and service gross profit rose 5% year over year to $400 million, aided by a 170-basis-point improvement in parts and service gross margin to 56.8%.
Group 1 Sees Lower Volumes as Pricing Stays Firm
On the retail new-vehicle side, sales fell 4.4% from the prior-year quarter’s level to $2.56 billion, units sold fell 6.6% year over year to 52,398, while gross profit per retail unit slipped 2.5% to $3,296. The average selling price per new vehicle increased 5.1% to $52,415, partially cushioning the revenue impact from lower volumes.
Used-vehicle retail sales rose 1.1% from the year-ago period to $1.77 billion. Units sold declined 4.4% to 56,985, and used retail gross profit per unit decreased 1.9% to $1,540. Still, the average used-vehicle selling price rose 6% to $31,204, reflecting a higher price environment even as unit counts moderated.
Used-vehicle wholesale sales declined 1.4% year over year to $149.5 million. The unit generated gross profit of $1.5 million, flat year over year. In the Parts and Service business, the top line increased 1.8% to $704.4 million. Revenues from the Finance, Insurance and Other business were $215.9 million, down 4.6% from the year-ago quarter’s level.
GPI’s U.S. Operations Record Sales & Profit Decline
In the reported quarter, revenues from the U.S. business segment fell 4% year over year to $3.76 billion. The segment’s gross profit declined 4.1% to $647.2 million. During the quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 34,666, 36,097 and 9,868, respectively.
Group 1’s U.K. Operations Post Record Quarterly Gross Profit
The U.K. segment generated revenues of $1.64 billion, up 3.8% year over year, while gross profit increased 6.3% to a record $230.6 million in the quarter. Within the market, parts and service sales climbed 10.2% to $177.3 million, and parts and service gross profit rose 13.3% to $102.5 million, supporting the overall improvement. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 17,732, 20,888 and 5,534, respectively.
The strength across several U.K. business lines in the quarter, including progress in used vehicles and F&I on a same-store basis, alongside ongoing operational initiatives aimed at expanding service capacity and throughput, resulted in improvement.
Group 1 Targets Efficiency, Reshapes Portfolio
In the United States, the company implemented staffing reductions and discretionary expense actions, and expects to remove $50 million of annual costs from U.S. operations through headcount and contract-related savings.
The quarter also included portfolio activity. Group 1 acquired one Skoda and two Volkswagen dealerships in the United Kingdom, expected to add about $135 million in annual revenues, while disposing of two Mercedes-Benz dealerships in California and one Volkswagen and one Skoda dealership in the United Kingdom that collectively represented about $570 million in annual revenues. Subsequent to quarter-end, the company executed an agreement with Geely to expand its U.K. network through three new locations.
GPI’s Cash Flow, Liquidity and Leverage Update
As of March 31, 2026, Group 1’s cash and cash equivalents totaled $41.7 million, up from $32.5 million as of Dec. 31, 2025. Total debt was $3.14 billion at March 31, 2026, down from $3.70 billion as of Dec. 31, 2025, while floorplan notes payable (net) increased to $2.24 billion from $1.92 billion over the same period.
The company reported total liquidity of $714.3 million at quarter-end, comprising accessible cash and availability on the acquisition line, and noted a rent-adjusted leverage ratio of 3.09x. The quarter included $53 million of capital expenditures and $72.4 million of share repurchases, with $306.3 million remaining under the authorized buyback program as of March 31, 2026.
GPI currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.