10:45 am, July 30, 2026
Car dealer giant Group 1 Automotive has reported lower revenues and profit in the second quarter, blaming ‘consumer affordability issues’.
The US-based company, which has more than 100 dealerships in the UK, posted revenues of $5.4bn (£4.0bn) for the three months to June 30, down 5.6% year-on-year.
Total gross profit came to $860.6m (£643.5m), while net income from continuing operations was $103.0m (£77.02m), compared to $139.8m (£104.5m) for the prior-year quarter. Adjusted earnings per share dropped from $11.52 to $9.61.
The company sold 53,335 vehicles in the period, down 4.4%, with gross profit per unit coming to $3,254 (£2,433) – a fall of 8.5%. Used sales, meanwhile, dropped 11.2% to 53,469, with profit per unit down 4.3% to $1,532 (£1,145).
The UK business performed notably better than the US side, with new car sales and aftersales helping offset softer used car trading.
Same-store new vehicle revenue increased 0.7% to $559.2m (£417.9m), while retail volumes rose 3.9% to 14,262 units. Gross profit from new car sales climbed 4.7% to $46.5m (£34.7m), with gross profit per vehicle also edging up 0.7% to $3,263 (£2,439).
Aftersales continued to underpin the UK business, with parts and service revenue rising 5.0% to $156.8m (£117.2m), while gross profit increased 3.9% to $91.0m (£68.0m).
Used cars were the weak spot. Retail used vehicle volumes slipped 1.3% to 18,847 units, while wholesale volumes dropped 10.4%. Used retail gross profit fell 5.9% to $25.0m (£18.69m), with gross profit per unit down 4.6% to $1,328 (£992), contributing to a 12.6% decline in total used vehicle gross profit.
Group 1 completed the sale of four Jaguar Land Rover dealerships in the UK during the second quarter, with these businesses generating around $330m (£247m) in annual revenues. Three were snapped up by rival Lithia, as reported by Car Dealer on June 6, with the fourth going to Duckworth Motor Group.
The sales were part of wide restructuring plans, as detailed in accounts for 2025, which included job losses.
While Group 1 disposed of JLR businesses, it also began a new relationship with Chinese carmaker Geely. Its first UK dealership opened in June with two more scheduled by the end of the year.
Commenting on the results, president and chief executive Daryl Kenningham said: ‘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.’
He added that the business remained focused on improving efficiency, integrating acquisitions and delivering long-term shareholder value.
Away from the UK, Group 1 also announced it had agreed to acquire 10 dealerships from Hennessy Automobile Companies in Atlanta, a deal expected to add around $1.7bn (£1.27bn) in annual revenues and further strengthen its US presence.