Group 1 Automotive reported total revenues of $5.4 billion for the second quarter of 2026, compared to $5.7 billion in the second quarter of 2025. Net income from continuing operations was $103 million, compared to $139.8 million in the prior-year quarter.
Diluted earnings per common share from continuing operations were $8.62, compared to $10.77 a year earlier. Adjusted diluted earnings per common share, a non-GAAP measure, was $9.61, compared to $11.52 in the prior-year quarter. The company said U.S. SG&A as a percentage of gross profit was 67.5%, while adjusted U.S. SG&A as a percentage of gross profit improved sequentially by more than 400 basis points to 66.4%.
Group 1 separately announced an agreement to acquire 10 dealerships from Hennessy Automobile Companies in the Atlanta market. The transaction is expected to close by year-end 2026, subject to regulatory and OEM approvals, and is expected to generate approximately $1.7 billion in annual revenues. Combined with two additional dealership acquisitions, the deal will boost the company’s Atlanta presence to 15 dealerships.
During the quarter, the company acquired four dealerships in the U.S. and disposed of four Jaguar/Land Rover dealerships in the U.K. that generated approximately $330 million in annual revenues. Year to date, the company has acquired dealership operations with total expected annual revenues of approximately $340 million, and dealership dispositions have brought year-to-date annualized revenues associated with such transactions to $900 million.
The company said it completed a previously announced $50 million annualized expense reduction initiative in the U.S. during the quarter, exceeding its targets. Group 1 also advanced its corporate rebranding to more than 60% completion and expanded its virtual F&I platform to more than 40% of its stores. As of June 30, 2026, the company had $306.3 million remaining under its board-authorized share repurchase program.
KEY QUOTES:
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.
Daryl Kenningham, President and CEO of Group 1 Automotive
