[10-Q] Group 1 Automotive, Inc. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Jaguar Health (JAGX) has filed a Form S-3 to register up to 1,409,732 common shares for resale by existing investors. The stock derives from (i) 481,150 shares underlying 6 % convertible Replacement Notes issued 24 Jun 2025 (conversion price $5.535–$5.555, maturity 30 Jan 2026) and (ii) 928,582 shares issuable on cash or cash-less exercise of accompanying warrants (exercise price $2.70, 18-month term). At the 23 Jul 2025 close of $2.38 the warrant strikes sit 13 % above market while the note conversion price is >130 % above market. If fully converted/exercised the new shares would expand the current 1.914 million share float by roughly 74 %, creating a sizeable overhang.
The company will not receive proceeds from secondary sales; only a full cash exercise of all warrants could raise ~$2.5 million, earmarked for working capital. The filing follows several recent financings (March convertible notes and May registered direct offering) and occurs alongside an active GI-focused drug pipeline led by crofelemer (FDA-approved Mytesi, multiple Phase 2/3 programs, orphan designations) and the October 2024 U.S. launch of Gelclair for oral mucositis. While pipeline breadth offers optionality, near-term investors must weigh dilution risk and potential price pressure from selling stockholders against the modest capital infusion possible from warrant exercises.
Jaguar Health (JAGX) ha depositato un modulo S-3 per registrare fino a 1.409.732 azioni ordinarie per la rivendita da parte degli investitori esistenti. Le azioni derivano da (i) 481.150 azioni sottostanti le Note Convertibili di Sostituzione al 6% emesse il 24 giugno 2025 (prezzo di conversione $5,535–$5,555, scadenza 30 gennaio 2026) e (ii) 928.582 azioni emettibili tramite esercizio in contanti o senza contanti dei warrant allegati (prezzo di esercizio $2,70, durata 18 mesi). Alla chiusura del 23 luglio 2025 a $2,38, il prezzo di esercizio dei warrant è circa il 13% superiore al mercato mentre il prezzo di conversione delle note è oltre il 130% superiore al mercato. Se completamente convertite/esercitate, le nuove azioni aumenterebbero il flottante attuale di 1,914 milioni di azioni di circa il 74%, creando un significativo sovraccarico.
L’azienda non riceverà proventi dalle vendite secondarie; solo un esercizio in contanti completo di tutti i warrant potrebbe raccogliere circa $2,5 milioni, destinati al capitale circolante. Il deposito segue diversi recenti finanziamenti (note convertibili di marzo e offerta diretta registrata di maggio) e avviene in concomitanza con un pipeline farmaceutico focalizzato sul tratto gastrointestinale guidato da crofelemer (Mytesi approvato dalla FDA, vari programmi di Fase 2/3, designazioni orfane) e il lancio negli USA di Gelclair previsto per ottobre 2024 per la mucosite orale. Sebbene l’ampiezza del pipeline offra opportunità, gli investitori a breve termine devono valutare il rischio di diluizione e la possibile pressione al ribasso del prezzo dovuta alla vendita da parte degli azionisti rispetto al modesto afflusso di capitale derivante dall’esercizio dei warrant.
Jaguar Health (JAGX) ha presentado un Formulario S-3 para registrar hasta 1.409.732 acciones ordinarias para reventa por parte de inversores existentes. Las acciones provienen de (i) 481.150 acciones subyacentes a Notas Convertibles de Reemplazo al 6 % emitidas el 24 de junio de 2025 (precio de conversión $5.535–$5.555, vencimiento 30 de enero de 2026) y (ii) 928.582 acciones emitibles mediante el ejercicio en efectivo o sin efectivo de los warrants adjuntos (precio de ejercicio $2.70, plazo de 18 meses). Al cierre del 23 de julio de 2025 a $2.38, el precio de ejercicio de los warrants está un 13 % por encima del mercado, mientras que el precio de conversión de las notas está más del 130 % por encima del mercado. Si se convierten/ejercen completamente, las nuevas acciones aumentarían el flotante actual de 1,914 millones de acciones en aproximadamente un 74 %, creando una considerable sobreoferta.
La empresa no recibirá ingresos por ventas secundarias; solo un ejercicio en efectivo completo de todos los warrants podría recaudar alrededor de $2.5 millones, destinados a capital de trabajo. La presentación sigue a varias financiaciones recientes (notas convertibles de marzo y oferta directa registrada de mayo) y ocurre junto a una activa línea de medicamentos centrada en el tracto gastrointestinal liderada por crofelemer (Mytesi aprobado por la FDA, múltiples programas de fase 2/3, designaciones huérfanas) y el lanzamiento en EE. UU. de Gelclair para la mucositis oral previsto para octubre de 2024. Aunque la amplitud de la línea ofrece opciones, los inversores a corto plazo deben sopesar el riesgo de dilución y la posible presión a la baja en el precio por parte de los accionistas que venden frente a la modesta inyección de capital posible mediante el ejercicio de los warrants.
Jaguar Health(JAGX)는 기존 투자자들의 재판매를 위해 최대 1,409,732주의 보통주를 등록하기 위해 Form S-3를 제출했습니다. 주식은 (i) 2025년 6월 24일에 발행된 6% 전환 대체채권에 기초한 481,150주(전환 가격 $5.535–$5.555, 만기 2026년 1월 30일)와 (ii) 동반 워런트의 현금 또는 무현금 행사로 발행 가능한 928,582주(행사가격 $2.70, 18개월 기간)에서 유래합니다. 2025년 7월 23일 종가 $2.38 기준으로 워런트 행사가격은 시장가보다 약 13% 높으며, 채권 전환 가격은 시장가보다 130% 이상 높습니다. 완전 전환/행사 시 신규 주식은 현재 191.4만 주 유통 주식 수를 약 74% 확대하여 상당한 매도 압력을 형성할 수 있습니다.
회사는 2차 매도에서 수익을 받지 않습니다; 모든 워런트를 현금으로 행사할 경우 약 $250만의 자금 조달이 가능하며, 이는 운전자본으로 사용될 예정입니다. 이번 제출은 최근 진행된 여러 자금 조달(3월 전환사채 및 5월 등록 직접 공모)에 이어 이루어졌으며, FDA 승인된 Mytesi와 다수의 2/3상 프로그램, 희귀 질환 지정 등을 포함한 소화기 질환 중심의 활발한 신약 파이프라인과 2024년 10월 예정된 구강 점막염 치료제 Gelclair의 미국 출시와 함께 진행됩니다. 파이프라인의 폭넓은 선택지는 긍정적이나 단기 투자자들은 희석 위험과 매도 주주의 주식 매도로 인한 가격 하락 압력을 워런트 행사로 인한 제한된 자본 유입과 비교해 신중히 고려해야 합니다.
Jaguar Health (JAGX) a déposé un formulaire S-3 pour enregistrer jusqu’à 1 409 732 actions ordinaires en revente par des investisseurs existants. Les actions proviennent de (i) 481 150 actions sous-jacentes à des billets de remplacement convertibles à 6 % émis le 24 juin 2025 (prix de conversion $5,535–$5,555, échéance 30 janvier 2026) et (ii) 928 582 actions pouvant être émises lors de l’exercice en numéraire ou sans numéraire des bons d’achat accompagnants (prix d’exercice $2,70, durée de 18 mois). À la clôture du 23 juillet 2025 à $2,38, les prix d’exercice des bons sont environ 13 % supérieurs au marché tandis que le prix de conversion des billets est supérieur de plus de 130 % au marché. En cas de conversion/exercice complet, les nouvelles actions augmenteraient le flottant actuel de 1,914 million d’actions d’environ 74 %, créant un important surplomb.
La société ne recevra aucun produit des ventes secondaires ; seul un exercice intégral en numéraire de tous les bons pourrait générer environ 2,5 millions de dollars, destinés au fonds de roulement. Le dépôt fait suite à plusieurs financements récents (billets convertibles de mars et offre directe enregistrée de mai) et intervient parallèlement à un pipeline pharmaceutique actif axé sur le système gastro-intestinal, mené par le crofélemer (Mytesi approuvé par la FDA, plusieurs programmes de phases 2/3, désignations orphelines) et au lancement prévu en octobre 2024 aux États-Unis de Gelclair pour la mucite buccale. Bien que l’étendue du pipeline offre des options, les investisseurs à court terme doivent peser le risque de dilution et la pression potentielle à la baisse du cours exercée par les actionnaires vendeurs face à l’infusion de capitaux modeste possible via l’exercice des bons.
Jaguar Health (JAGX) hat ein Formular S-3 eingereicht, um bis zu 1.409.732 Stammaktien für den Wiederverkauf durch bestehende Investoren zu registrieren. Die Aktien stammen aus (i) 481.150 Aktien, die zugrunde liegen 6 % konvertierbaren Ersatzanleihen, die am 24. Juni 2025 ausgegeben wurden (Umwandlungspreis $5,535–$5,555, Fälligkeit 30. Januar 2026) und (ii) 928.582 Aktien, die bei Bar- oder Barkauf-Übung der begleitenden Optionsscheine ausgegeben werden können (Ausübungspreis $2,70, Laufzeit 18 Monate). Zum Schlusskurs am 23. Juli 2025 von $2,38 liegen die Ausübungspreise der Optionsscheine etwa 13 % über dem Markt, während der Umwandlungspreis der Anleihen über 130 % über dem Markt liegt. Bei vollständiger Umwandlung/Ausübung würden die neuen Aktien den aktuellen Streubesitz von 1,914 Millionen Aktien um etwa 74 % erhöhen und eine beträchtliche Überhangsituation schaffen.
Das Unternehmen erhält keine Erlöse aus Sekundärverkäufen; nur eine vollständige Barausübung aller Optionsscheine könnte rund $2,5 Millionen einbringen, die für das Betriebskapital vorgesehen sind. Die Einreichung folgt mehreren jüngsten Finanzierungen (konvertible Anleihen im März und registriertes Direktangebot im Mai) und erfolgt parallel zu einer aktiven, auf den Magen-Darm-Trakt fokussierten Medikamentenpipeline, angeführt von Crofelemer (FDA-zugelassenes Mytesi, mehrere Phase-2/3-Programme, Orphan-Designationen) und der für Oktober 2024 geplanten US-Markteinführung von Gelclair bei oraler Mukositis. Während die Breite der Pipeline Optionen bietet, müssen kurzfristige Investoren das Verwässerungsrisiko und den möglichen Abwärtsdruck durch verkaufende Aktionäre gegen den bescheidenen Kapitalzufluss durch die Ausübung der Optionsscheine abwägen.
Positive
- Potential $2.5 million in cash proceeds if all $2.70 warrants are exercised.
- Note conversion price ($5.535–$5.555) is well above current market, reducing likelihood of immediate conversion-driven selling.
- Filing enhances liquidity for existing holders and removes Rule 144 timing uncertainty.
Negative
- Registration adds 1.41 million shares, a ~74 % potential increase in float, leading to dilution risk.
- Warrants priced near market could generate sell pressure once shares are free trading.
- Company receives no cash from secondary share sales, limiting near-term balance-sheet improvement.
- Continued use of convertible debt and warrant structures signals ongoing capital needs.
Insights
TL;DR: Filing registers 1.41 M resale shares—74 % dilution, limited cash to JAGX; sizeable supply overhang outweighs modest ~$2.5 M warrant proceeds.
The S-3 enables holders of June 2025 Replacement Notes and warrants to freely trade 1.41 M shares, versus only 1.91 M currently outstanding. Although note conversion is struck far above market, the $2.70 warrants sit close to spot, making exercise and immediate resale plausible. Because proceeds flow to the company only on cash exercise—and total just ~$2.5 M—the balance of risks skews negative: material dilution, potential downward pressure as insiders and funds monetize positions, and continued dependence on external capital to advance trials. Investors should monitor selling volume and the company’s cash runway, which was not disclosed here.
TL;DR: Registration clears cap-table clutter; pipeline still hinges on crofelemer progress and orphan strategies.
From an operational view, Jaguar retains full global rights to crofelemer and is pursuing multiple niche indications—SBS, MVID, CTD—supported by orphan incentives and proof-of-concept data. The filing itself is routine for financing housekeeping, but it underscores ongoing reliance on convertible structures rather than strategic partners. With warrants just above market the company could access quick, low-cost capital, yet that option dilutes shareholders without guaranteeing clinical inflection points. Milestones such as FDA Type C feedback on breast-cancer diarrhea prophylaxis and early-access EU programs remain primary value drivers.
Jaguar Health (JAGX) ha depositato un modulo S-3 per registrare fino a 1.409.732 azioni ordinarie per la rivendita da parte degli investitori esistenti. Le azioni derivano da (i) 481.150 azioni sottostanti le Note Convertibili di Sostituzione al 6% emesse il 24 giugno 2025 (prezzo di conversione $5,535–$5,555, scadenza 30 gennaio 2026) e (ii) 928.582 azioni emettibili tramite esercizio in contanti o senza contanti dei warrant allegati (prezzo di esercizio $2,70, durata 18 mesi). Alla chiusura del 23 luglio 2025 a $2,38, il prezzo di esercizio dei warrant è circa il 13% superiore al mercato mentre il prezzo di conversione delle note è oltre il 130% superiore al mercato. Se completamente convertite/esercitate, le nuove azioni aumenterebbero il flottante attuale di 1,914 milioni di azioni di circa il 74%, creando un significativo sovraccarico.
L’azienda non riceverà proventi dalle vendite secondarie; solo un esercizio in contanti completo di tutti i warrant potrebbe raccogliere circa $2,5 milioni, destinati al capitale circolante. Il deposito segue diversi recenti finanziamenti (note convertibili di marzo e offerta diretta registrata di maggio) e avviene in concomitanza con un pipeline farmaceutico focalizzato sul tratto gastrointestinale guidato da crofelemer (Mytesi approvato dalla FDA, vari programmi di Fase 2/3, designazioni orfane) e il lancio negli USA di Gelclair previsto per ottobre 2024 per la mucosite orale. Sebbene l’ampiezza del pipeline offra opportunità, gli investitori a breve termine devono valutare il rischio di diluizione e la possibile pressione al ribasso del prezzo dovuta alla vendita da parte degli azionisti rispetto al modesto afflusso di capitale derivante dall’esercizio dei warrant.
Jaguar Health (JAGX) ha presentado un Formulario S-3 para registrar hasta 1.409.732 acciones ordinarias para reventa por parte de inversores existentes. Las acciones provienen de (i) 481.150 acciones subyacentes a Notas Convertibles de Reemplazo al 6 % emitidas el 24 de junio de 2025 (precio de conversión $5.535–$5.555, vencimiento 30 de enero de 2026) y (ii) 928.582 acciones emitibles mediante el ejercicio en efectivo o sin efectivo de los warrants adjuntos (precio de ejercicio $2.70, plazo de 18 meses). Al cierre del 23 de julio de 2025 a $2.38, el precio de ejercicio de los warrants está un 13 % por encima del mercado, mientras que el precio de conversión de las notas está más del 130 % por encima del mercado. Si se convierten/ejercen completamente, las nuevas acciones aumentarían el flotante actual de 1,914 millones de acciones en aproximadamente un 74 %, creando una considerable sobreoferta.
La empresa no recibirá ingresos por ventas secundarias; solo un ejercicio en efectivo completo de todos los warrants podría recaudar alrededor de $2.5 millones, destinados a capital de trabajo. La presentación sigue a varias financiaciones recientes (notas convertibles de marzo y oferta directa registrada de mayo) y ocurre junto a una activa línea de medicamentos centrada en el tracto gastrointestinal liderada por crofelemer (Mytesi aprobado por la FDA, múltiples programas de fase 2/3, designaciones huérfanas) y el lanzamiento en EE. UU. de Gelclair para la mucositis oral previsto para octubre de 2024. Aunque la amplitud de la línea ofrece opciones, los inversores a corto plazo deben sopesar el riesgo de dilución y la posible presión a la baja en el precio por parte de los accionistas que venden frente a la modesta inyección de capital posible mediante el ejercicio de los warrants.
Jaguar Health(JAGX)는 기존 투자자들의 재판매를 위해 최대 1,409,732주의 보통주를 등록하기 위해 Form S-3를 제출했습니다. 주식은 (i) 2025년 6월 24일에 발행된 6% 전환 대체채권에 기초한 481,150주(전환 가격 $5.535–$5.555, 만기 2026년 1월 30일)와 (ii) 동반 워런트의 현금 또는 무현금 행사로 발행 가능한 928,582주(행사가격 $2.70, 18개월 기간)에서 유래합니다. 2025년 7월 23일 종가 $2.38 기준으로 워런트 행사가격은 시장가보다 약 13% 높으며, 채권 전환 가격은 시장가보다 130% 이상 높습니다. 완전 전환/행사 시 신규 주식은 현재 191.4만 주 유통 주식 수를 약 74% 확대하여 상당한 매도 압력을 형성할 수 있습니다.
회사는 2차 매도에서 수익을 받지 않습니다; 모든 워런트를 현금으로 행사할 경우 약 $250만의 자금 조달이 가능하며, 이는 운전자본으로 사용될 예정입니다. 이번 제출은 최근 진행된 여러 자금 조달(3월 전환사채 및 5월 등록 직접 공모)에 이어 이루어졌으며, FDA 승인된 Mytesi와 다수의 2/3상 프로그램, 희귀 질환 지정 등을 포함한 소화기 질환 중심의 활발한 신약 파이프라인과 2024년 10월 예정된 구강 점막염 치료제 Gelclair의 미국 출시와 함께 진행됩니다. 파이프라인의 폭넓은 선택지는 긍정적이나 단기 투자자들은 희석 위험과 매도 주주의 주식 매도로 인한 가격 하락 압력을 워런트 행사로 인한 제한된 자본 유입과 비교해 신중히 고려해야 합니다.
Jaguar Health (JAGX) a déposé un formulaire S-3 pour enregistrer jusqu’à 1 409 732 actions ordinaires en revente par des investisseurs existants. Les actions proviennent de (i) 481 150 actions sous-jacentes à des billets de remplacement convertibles à 6 % émis le 24 juin 2025 (prix de conversion $5,535–$5,555, échéance 30 janvier 2026) et (ii) 928 582 actions pouvant être émises lors de l’exercice en numéraire ou sans numéraire des bons d’achat accompagnants (prix d’exercice $2,70, durée de 18 mois). À la clôture du 23 juillet 2025 à $2,38, les prix d’exercice des bons sont environ 13 % supérieurs au marché tandis que le prix de conversion des billets est supérieur de plus de 130 % au marché. En cas de conversion/exercice complet, les nouvelles actions augmenteraient le flottant actuel de 1,914 million d’actions d’environ 74 %, créant un important surplomb.
La société ne recevra aucun produit des ventes secondaires ; seul un exercice intégral en numéraire de tous les bons pourrait générer environ 2,5 millions de dollars, destinés au fonds de roulement. Le dépôt fait suite à plusieurs financements récents (billets convertibles de mars et offre directe enregistrée de mai) et intervient parallèlement à un pipeline pharmaceutique actif axé sur le système gastro-intestinal, mené par le crofélemer (Mytesi approuvé par la FDA, plusieurs programmes de phases 2/3, désignations orphelines) et au lancement prévu en octobre 2024 aux États-Unis de Gelclair pour la mucite buccale. Bien que l’étendue du pipeline offre des options, les investisseurs à court terme doivent peser le risque de dilution et la pression potentielle à la baisse du cours exercée par les actionnaires vendeurs face à l’infusion de capitaux modeste possible via l’exercice des bons.
Jaguar Health (JAGX) hat ein Formular S-3 eingereicht, um bis zu 1.409.732 Stammaktien für den Wiederverkauf durch bestehende Investoren zu registrieren. Die Aktien stammen aus (i) 481.150 Aktien, die zugrunde liegen 6 % konvertierbaren Ersatzanleihen, die am 24. Juni 2025 ausgegeben wurden (Umwandlungspreis $5,535–$5,555, Fälligkeit 30. Januar 2026) und (ii) 928.582 Aktien, die bei Bar- oder Barkauf-Übung der begleitenden Optionsscheine ausgegeben werden können (Ausübungspreis $2,70, Laufzeit 18 Monate). Zum Schlusskurs am 23. Juli 2025 von $2,38 liegen die Ausübungspreise der Optionsscheine etwa 13 % über dem Markt, während der Umwandlungspreis der Anleihen über 130 % über dem Markt liegt. Bei vollständiger Umwandlung/Ausübung würden die neuen Aktien den aktuellen Streubesitz von 1,914 Millionen Aktien um etwa 74 % erhöhen und eine beträchtliche Überhangsituation schaffen.
Das Unternehmen erhält keine Erlöse aus Sekundärverkäufen; nur eine vollständige Barausübung aller Optionsscheine könnte rund $2,5 Millionen einbringen, die für das Betriebskapital vorgesehen sind. Die Einreichung folgt mehreren jüngsten Finanzierungen (konvertible Anleihen im März und registriertes Direktangebot im Mai) und erfolgt parallel zu einer aktiven, auf den Magen-Darm-Trakt fokussierten Medikamentenpipeline, angeführt von Crofelemer (FDA-zugelassenes Mytesi, mehrere Phase-2/3-Programme, Orphan-Designationen) und der für Oktober 2024 geplanten US-Markteinführung von Gelclair bei oraler Mukositis. Während die Breite der Pipeline Optionen bietet, müssen kurzfristige Investoren das Verwässerungsrisiko und den möglichen Abwärtsdruck durch verkaufende Aktionäre gegen den bescheidenen Kapitalzufluss durch die Ausübung der Optionsscheine abwägen.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2025
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission File Number: 1-13461
(Exact name of registrant as specified in its charter)
| (State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| | (Zip code) | ||||||||||
| (Address of principal executive offices) | |||||||||||
(713 ) 647-5700
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Ticker symbol(s) | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| þ | ¨ | Accelerated filer | ||||||||||||
| Non-accelerated filer | ¨ | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if that registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
As of July 18, 2025, the registrant had 12,939,665 shares of common stock outstanding.
Table of Contents
TABLE OF CONTENTS
GLOSSARY OF DEFINITIONS | 1 | |||||||
FORWARD-LOOKING STATEMENTS | 2 | |||||||
PART I. FINANCIAL INFORMATION | 3 | |||||||
| Item 1. | Financial Statements | 3 | ||||||
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 22 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 45 | ||||||
| Item 4. | Controls and Procedures | 45 | ||||||
PART II. OTHER INFORMATION | 47 | |||||||
| Item 1. | Legal Proceedings | 47 | ||||||
| Item 1A. | Risk Factors | 47 | ||||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 47 | ||||||
| Item 5. | Other Information | 48 | ||||||
| Item 6. | Exhibits | 49 | ||||||
SIGNATURE | 50 | |||||||
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GLOSSARY OF DEFINITIONS
The following are abbreviations and definitions of terms used within this report:
| Terms | Definitions | |||||||
| AOCI | Accumulated other comprehensive income (loss) | |||||||
| ASU | Accounting Standards Update | |||||||
| EPS | Earnings per share | |||||||
| F&I | Finance, insurance and other | |||||||
| FMCC | Ford Motor Credit Company | |||||||
| GBP | British Pound Sterling (£) | |||||||
| OEM | Original equipment manufacturer | |||||||
| PRU | Per retail unit | |||||||
| SG&A | Selling, general and administrative | |||||||
| SOFR | Secured Overnight Financing Rate | |||||||
| U.K. | United Kingdom | |||||||
| U.S. | United States of America | |||||||
| USD | United States Dollar ($) | |||||||
| U.S. GAAP | Accounting principles generally accepted in the U.S. | |||||||
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Forward-Looking Statements
Unless the context requires otherwise, references to “we,” “us,” “our” “Group 1” or the “Company” are intended to mean the business and operations of Group 1 Automotive, Inc. and its subsidiaries.
This Quarterly Report on Form 10-Q (this “Form 10-Q”) includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). These forward-looking statements include, but are not limited to, statements concerning the Company’s strategy, future operating performance, future liquidity and availability of financing, capital allocation, the completion of future acquisitions and divestitures, as well as the impact of cyberattacks or other privacy/data security incidents, business trends in the retail automotive industry, changes in regulations and potential changes in U.S. and global trade policy, including the imposition by the U.S. of significant tariffs on the import of automobiles and certain materials used in our parts and service operating business and the resulting consequences and the passage of the “One Big Beautiful Bill”, including the associated impact on tax deductions in the domestic car industry and elimination of certain clean energy tax credits, which could impact incentives for electric vehicle production and sales. When used in this Form 10-Q, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may” and similar expressions are intended to identify forward-looking statements.
These forward-looking statements are based on the Company’s expectations and beliefs as of the date of this Form 10-Q concerning future developments and their potential effect on the Company. While management believes that these forward-looking statements are reasonable when and as made, there can be no assurance that future developments affecting the Company will be those that are anticipated. The Company’s forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the risks set forth in Item 1A. Risk Factors of this Form 10-Q.
For additional information regarding known material factors that could cause actual results to differ from projected results, refer to Part II, Item 1A. Risk Factors herein, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) and Part II, Item 1A. Risk Factors in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2025, as well as Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk of this Form 10-Q.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no responsibility and expressly disclaims any duty, to update any such statements, whether as a result of new information, new developments or otherwise, or to publicly release the result of any revision of the forward-looking statements after the date they are made, except to the extent required by law.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except share data)
| June 30, 2025 | December 31, 2024 | |||||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS: | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Contracts-in-transit and vehicle receivables, net | ||||||||||||||
| Accounts and notes receivable, net | ||||||||||||||
| Inventories | ||||||||||||||
| Prepaid expenses | ||||||||||||||
| Other current assets | ||||||||||||||
| Current assets classified as held for sale | ||||||||||||||
| TOTAL CURRENT ASSETS | ||||||||||||||
Property and equipment, net of accumulated depreciation of $ | ||||||||||||||
| Operating lease assets | ||||||||||||||
| Goodwill | ||||||||||||||
| Intangible franchise rights | ||||||||||||||
| Other long-term assets | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||
Floorplan notes payable — credit facility and other, net of offset account of $ | $ | $ | ||||||||||||
Floorplan notes payable — manufacturer affiliates, net of offset account of $ | ||||||||||||||
| Current maturities of long-term debt | ||||||||||||||
| Current operating lease liabilities | ||||||||||||||
| Accounts payable | ||||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||||
| Current liabilities classified as held for sale | ||||||||||||||
| TOTAL CURRENT LIABILITIES | ||||||||||||||
| Long-term debt | ||||||||||||||
| Long-term operating lease liabilities | ||||||||||||||
| Deferred income taxes | ||||||||||||||
| Other long-term liabilities | ||||||||||||||
Commitments and Contingencies (Note 12) | ||||||||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||||||
Common stock, $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Accumulated other comprehensive income (loss) | ||||||||||||||
Treasury stock, at cost; | ( | ( | ||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In millions, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||
| New vehicle retail sales | $ | $ | $ | $ | ||||||||||||||||||||||
| Used vehicle retail sales | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | ||||||||||||||||||||||||||
| Parts and service sales | ||||||||||||||||||||||||||
| Finance, insurance and other, net | ||||||||||||||||||||||||||
| Total revenues | ||||||||||||||||||||||||||
| COST OF SALES: | ||||||||||||||||||||||||||
| New vehicle retail sales | ||||||||||||||||||||||||||
| Used vehicle retail sales | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | ||||||||||||||||||||||||||
| Parts and service sales | ||||||||||||||||||||||||||
| Total cost of sales | ||||||||||||||||||||||||||
| GROSS PROFIT | ||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||||||||
| Asset impairments | ||||||||||||||||||||||||||
| Restructuring charges | ||||||||||||||||||||||||||
| INCOME FROM OPERATIONS | ||||||||||||||||||||||||||
| Floorplan interest expense | ||||||||||||||||||||||||||
| Other interest expense, net | ||||||||||||||||||||||||||
| Other expense (income) | ( | ( | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Provision for income taxes | ||||||||||||||||||||||||||
| Net income from continuing operations | ||||||||||||||||||||||||||
| Net income from discontinued operations | ||||||||||||||||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||||||||||||
| BASIC EARNINGS PER SHARE: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| DILUTED EARNINGS PER SHARE: | ||||||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | ||||||||||||||||||||||
| Discontinued operations | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
| Net unrealized gain (loss) on interest rate risk management activities, net of tax: | ||||||||||||||||||||||||||
Unrealized (loss) gain arising during the period, net of tax benefit (provision) of $ | ( | ( | ||||||||||||||||||||||||
Reclassification adjustment for gain included in interest expense, net of tax provision of $( | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification related to de-designated interest rate swaps, net of tax provision of $ | ( | |||||||||||||||||||||||||
| Unrealized (loss) gain on interest rate risk management activities, net of tax | ( | ( | ( | |||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ( | ( | ||||||||||||||||||||||||
| COMPREHENSIVE INCOME | $ | $ | $ | $ | ||||||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions, except share data)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| BALANCE, MARCH 31, 2025 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Purchases of treasury stock, including excise tax | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
| Net issuance of treasury shares to stock compensation plans | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
| BALANCE, JUNE 30, 2025 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE, DECEMBER 31, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchases of treasury stock, including excise tax | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net issuance of treasury shares to stock compensation plans | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE, JUNE 30, 2025 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In millions, except share data)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| BALANCE, MARCH 31, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of taxes | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
| Purchases of treasury stock, including excise tax | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
| Net issuance of treasury shares to stock compensation plans | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
| BALANCE, JUNE 30, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| BALANCE, DECEMBER 31, 2023 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of taxes | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
| Purchases of treasury stock, including excise tax | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
| Net issuance of treasury shares to stock compensation plans | ( | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
| BALANCE, JUNE 30, 2024 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
| Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Change in operating lease assets | ||||||||||||||
| Deferred income taxes | ( | |||||||||||||
| Asset impairments | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Amortization of debt discount and issuance costs | ||||||||||||||
| Gain on disposition of assets | ( | ( | ||||||||||||
Unrealized loss (gain) on derivative instruments | ( | |||||||||||||
| Other | ( | ( | ||||||||||||
| Changes in assets and liabilities, net of acquisitions and dispositions: | ||||||||||||||
| Accounts payable and accrued expenses | ( | |||||||||||||
| Accounts and notes receivable | ( | |||||||||||||
| Inventories | ( | |||||||||||||
| Contracts-in-transit and vehicle receivables | ||||||||||||||
| Prepaid expenses and other assets | ||||||||||||||
Floorplan notes payable — manufacturer affiliates | ( | |||||||||||||
| Deferred revenues | ( | ( | ||||||||||||
| Operating lease liabilities | ( | ( | ||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Cash paid for acquisitions, net, including repayment of sellers’ floorplan notes payable of $ | ( | ( | ||||||||||||
| Proceeds from disposition of franchises, property and equipment | ||||||||||||||
| Purchases of property and equipment | ( | ( | ||||||||||||
Escrow payments for acquisitions | ( | ( | ||||||||||||
| Other | ( | |||||||||||||
| Net cash used in investing activities | ( | ( | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Borrowings on credit facility — floorplan line and other | ||||||||||||||
Repayments on credit facility — floorplan line and other | ( | ( | ||||||||||||
Borrowings on credit facility — acquisition line | ||||||||||||||
Repayments on credit facility — acquisition line | ( | ( | ||||||||||||
| Debt issuance costs | ( | ( | ||||||||||||
| Borrowings on other debt | ||||||||||||||
| Principal payments on other debt | ( | ( | ||||||||||||
| Proceeds from employee stock purchase plan | ||||||||||||||
| Payments of tax withholding for stock-based compensation | ( | ( | ||||||||||||
| Repurchases of common stock, amounts based on settlement date | ( | ( | ||||||||||||
| Dividends paid | ( | ( | ||||||||||||
| Net cash (used in) provided by financing activities | ( | |||||||||||||
| Effect of exchange rate changes on cash | ||||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| CASH AND CASH EQUIVALENTS, beginning of period | ||||||||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | $ | ||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION AND CONSOLIDATION AND ACCOUNTING POLICIES
Basis of Presentation and Consolidation
The accompanying Condensed Consolidated Financial Statements and notes thereto, have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Results for interim periods are not necessarily indicative of the results that can be expected for a full year and therefore should be read in conjunction with the Company’s audited Financial Statements and notes thereto included within the Company’s 2024 Form 10-K. All intercompany balances and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Financial Statements reflect the consolidated accounts of the parent company, Group 1 Automotive, Inc. and its subsidiaries, all of which are wholly owned.
Discontinued operations presented in the accompanying Condensed Consolidated Financial Statements relate to the Company’s Brazilian operations which were disposed of in 2022. Unless otherwise specified, disclosures in these Condensed Consolidated Financial Statements reflect continuing operations only.
Certain amounts in the Condensed Consolidated Financial Statements and the accompanying notes may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented. These Condensed Consolidated Financial Statements reflect, in the opinion of management, all normal recurring adjustments necessary to fairly state, in all material respects, the Company’s financial position and results of operations for the periods presented.
Use of Estimates
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require the disclosure of a reconciliation between income tax expense from continuing operations and the amount computed by multiplying income from continuing operations before income taxes by the applicable statutory rate as well as an annual disaggregation of the income tax rate reconciliation between certain specified categories by both percentage and reported amounts, along with other changes to income tax disclosure requirements. The standard will be effective for annual periods beginning after December 15, 2024. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements; however, the adoption will require certain additional income tax disclosures.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
2. REVENUES
The following tables present the Company’s revenues disaggregated by its geographical segments (in millions):
| Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| U.S. | U.K. | Total | U.S. | U.K. | Total | ||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | |||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | |||||||||||||||||||||||||||||||||||||||||
| Total new and used vehicle sales | |||||||||||||||||||||||||||||||||||||||||
Parts and service sales (1) | |||||||||||||||||||||||||||||||||||||||||
Finance, insurance and other, net (2) | |||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||
| U.S. | U.K. | Total | U.S. | U.K. | Total | ||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | |||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | |||||||||||||||||||||||||||||||||||||||||
| Total new and used vehicle sales | |||||||||||||||||||||||||||||||||||||||||
Parts and service sales (1) | |||||||||||||||||||||||||||||||||||||||||
Finance, insurance and other, net (2) | |||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
(1) The Company has elected not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of these contracts is less than one year.
3. ACQUISITIONS AND DISPOSITIONS
The Company accounts for business combinations under the acquisition method of accounting, wherein the Company allocates the purchase price to the assets acquired and liabilities assumed based on an estimate of fair value.
Inchcape Acquisition
On August 1, 2024, the Company completed the acquisition of Inchcape Retail automotive operations (“Inchcape Retail”), consisting of 54 dealership locations, certain real estate and three collision centers across the U.K. (collectively referred to as the “Inchcape Acquisition”), for aggregate consideration of approximately $517.0 million.
The purchase price allocation for the Inchcape Acquisition is preliminary. The Company is continuing to analyze and assess relevant information related to deferred income taxes. Due to the complexity of the Inchcape Acquisition, these amounts are provisional and subject to change as the Company’s fair value assessments are finalized. The Company will reflect any such adjustments in subsequent filings. The results of the Inchcape Acquisition are included in the U.K. segment. The acquired goodwill is not deductible for income tax purposes.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
The following table summarizes the consideration paid and aggregate amounts of assets acquired and liabilities assumed as of June 30, 2025 (in millions):
| Total consideration | $ | |||||||
| Identifiable assets acquired and liabilities assumed | ||||||||
Cash | $ | |||||||
| Contracts-in-transit and vehicle receivables, net | ||||||||
Accounts receivable, net | ||||||||
| Inventories | ||||||||
Prepaid expenses and other current assets | ||||||||
| Property and equipment | ||||||||
| Operating lease assets | ||||||||
| Intangible franchise rights | ||||||||
| Total assets acquired | ||||||||
Floorplan notes payable | ||||||||
Accounts payable | ||||||||
Accrued expenses | ||||||||
| Operating lease liabilities | ||||||||
| Deferred income taxes | ||||||||
Other liabilities | ||||||||
| Total liabilities assumed | ||||||||
| Total identifiable net assets | ||||||||
| Goodwill | $ | |||||||
The Company recorded $0.2 million of acquisition related costs attributable to the Inchcape Acquisition during the six months ended June 30, 2025. These costs are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.
The Company’s Condensed Consolidated Statements of Operations included revenues and net loss attributable to Inchcape Retail for the three months ended June 30, 2025 of $634.0 million and $2.6 million, respectively, and for the six months ended June 30, 2025 of $1.3 billion and $1.1 million, respectively. The net loss attributable to Inchcape Retail for the three and six months ended June 30, 2025 includes the impact of the restructuring charges further described in Note 4: Restructuring.
The following unaudited pro forma financial information presents consolidated information of the Company as if the Inchcape Acquisition had occurred on January 1, 2024 (in millions):
| Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||
(unaudited) | ||||||||||||||
| Revenues | $ | $ | ||||||||||||
| Net income | $ | $ | ||||||||||||
This pro forma information incorporates the Company’s accounting policies and adjusts the results of Inchcape Retail assuming that the fair value adjustments in connection with the Inchcape Acquisition occurred on January 1, 2024. They have also been adjusted to reflect the $0.2 million and $15.4 million of acquisition-related costs incurred during the six months ended June 30, 2025 and the year ended December 31, 2024, respectively, as having occurred on January 1, 2024.
Pro forma data may not be indicative of the results that would have been obtained had these events actually occurred at the beginning of the period presented and is not intended to be a projection of future results.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
Other Acquisitions
During the six months ended June 30, 2025, the Company acquired three dealerships in the U.S, including one Lexus dealership, one Acura dealership, and one Mercedes-Benz dealership. Aggregate consideration paid for these dealerships, which were accounted for as business combinations, was $305.8 million, consisting of cash paid of $305.3 million and a payable of $0.5 million. Goodwill associated with the acquisitions totaled $164.4 million.
During the six months ended June 30, 2025, the Company acquired four dealerships in the U.K, including three Toyota dealerships and one Lexus dealership. Aggregate consideration paid for these dealerships, which were accounted for as business combinations, was $16.4 million. Goodwill associated with the acquisitions totaled $2.4 million.
The purchase price allocation for these acquisitions is preliminary and subject to change as the Company’s fair value assessments are finalized. The Company is continuing to analyze and assess relevant information related to the valuation of certain assets and liabilities, including, but not limited to, the valuation of property, equipment, intangible assets and deferred income taxes. The Company will reflect any required fair value adjustments in subsequent periods.
During the six months ended June 30, 2024, the Company acquired nine dealerships in the U.S., including three Honda dealerships, two Lexus dealerships, one Toyota dealership, one Kia dealership, one Hyundai dealership and one Mercedes-Benz dealership. The Company also acquired one Toyota Certified pre-owned center and three collision centers in the U.S. Aggregate consideration paid for these dealerships, which were accounted for as business combinations, was $690.4 million. Goodwill associated with the acquisitions totaled $288.3 million.
Dispositions
The Company’s divestitures generally consist of dealership assets and related real estate. Gains and losses on divestitures are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.
During the six months ended June 30, 2025, the Company recorded a net pre-tax gain totaling $0.7 million related to the disposition of three dealerships in the U.S. The dispositions reduced goodwill by $19.6 million. The Company also terminated four franchises in the U.S.
During the six months ended June 30, 2025, the Company closed four dealerships in the U.K. in connection with the Restructuring Plan (as defined in Note 4. Restructuring). Refer to Note 4. Restructuring for further information regarding the impairment charges taken on these closed dealerships as part of the Restructuring Plan.
During the six months ended June 30, 2025, the Company terminated eight franchises in the U.K. and recorded an impairment charge of $2.7 million associated with certain franchise terminations.
During the six months ended June 30, 2024, the Company recorded a net pre-tax gain totaling $51.6 million related to the disposition of seven dealerships and one collision center in the U.S. The dispositions reduced goodwill by $62.5 million.
There was no goodwill reclassified to assets held for sale as of June 30, 2025. Assets held for sale in the Condensed Consolidated Balance Sheets included $11.5 million of goodwill that was reclassified to assets held for sale as of December 31, 2024.
4. RESTRUCTURING
During the fourth quarter of 2024, the Company initiated a U.K.-wide restructuring plan (the “Restructuring Plan”) related to the integration activities of Inchcape Retail with existing U.K. operations. The Restructuring Plan consists of workforce realignment, including certain headcount reductions, strategic closing of certain facilities and dealerships. The Restructuring Plan is expected to continue throughout 2025, and the Company expects to incur $0.8 million in additional restructuring charges. Any changes to the Company’s estimates or timing will be reflected in the Company’s results of operations in future periods.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
The components of total restructuring charges were as follows (in millions):
| Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | |||||||||||||
Contract termination costs | $ | $ | ||||||||||||
Facility closure costs | ||||||||||||||
Employee related costs | ||||||||||||||
Asset impairments | ||||||||||||||
Systems integration costs | ||||||||||||||
Total restructuring charges | $ | $ | ||||||||||||
Charges associated with the Restructuring Plan are included within Restructuring Charges on the Condensed Consolidated Statements of Operations. As of June 30, 2025, the Company has incurred $31.8 million of restructuring charges related to the Restructuring Plan since the commencement of the plan.
The following table presents the changes in restructuring related liabilities (in millions):
| December 31, 2024 | $ | |||||||||||||||||||
Charges incurred (1) | ||||||||||||||||||||
Cash payments | ( | |||||||||||||||||||
| June 30, 2025 | $ | |||||||||||||||||||
(1) Charges incurred excludes non-cash asset impairments of $3.7 million.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
5. SEGMENT INFORMATION
Selected reportable segment data for continuing operations were as follows (in millions). All intercompany balances and transactions have been eliminated in consolidation.
| Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||
| U.S. | U.K. | Total | U.S. | U.K. | Total | ||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Cost of sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| SG&A expenses | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Depreciation and amortization expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Asset impairments | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Restructuring charges | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Floorplan interest expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Other interest expense, net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other segment items (1) | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Income before income taxes | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Capital expenditures: | |||||||||||||||||||||||||||||||||||
| Real estate related capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Non-real estate related capital expenditures | |||||||||||||||||||||||||||||||||||
| Total capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||
| U.S. | U.K. | Total | U.S. | U.K. | Total | ||||||||||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Cost of sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| SG&A expenses | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Depreciation and amortization expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Floorplan interest expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Other interest expense, net | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other segment items (1) | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||
| Income before income taxes | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Capital expenditures: | |||||||||||||||||||||||||||||||||||
| Real estate related capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Non-real estate related capital expenditures | |||||||||||||||||||||||||||||||||||
| Total capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
| June 30, 2025 | ||||||||||||||||||||
| U.S. | U.K. | Total | ||||||||||||||||||
| Property and equipment, net | $ | $ | $ | |||||||||||||||||
Total assets (1) | $ | $ | $ | |||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| U.S. | U.K. | Total | ||||||||||||||||||
| Property and equipment, net | $ | $ | $ | |||||||||||||||||
Total assets (1) | $ | $ | $ | |||||||||||||||||
(1) Total assets for reportable segments exclude the total assets related to discontinued operations. The assets related to discontinued operations were immaterial as of June 30, 2025 and December 31, 2024.
6. EARNINGS PER SHARE
The two-class method is utilized for the computation of the Company’s EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends that are paid in cash. The Company’s restricted stock awards are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.
The following table sets forth the calculation of EPS (in millions, except share and per share data):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Weighted average basic common shares outstanding | ||||||||||||||||||||||||||
| Dilutive effect of stock-based awards and employee stock purchases | ||||||||||||||||||||||||||
| Weighted average dilutive common shares outstanding | ||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||
| Less: Earnings allocated to participating securities from continuing operations | ||||||||||||||||||||||||||
Less: Earnings allocated to participating securities to discontinued operations | ||||||||||||||||||||||||||
| Net income available to basic common shares | $ | $ | $ | $ | ||||||||||||||||||||||
| Basic earnings per common share | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||
| Less: Earnings allocated to participating securities from continuing operations | ||||||||||||||||||||||||||
Less: Earnings allocated to participating securities to discontinued operations | ||||||||||||||||||||||||||
| Net income available to diluted common shares | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted earnings per common share | $ | $ | $ | $ | ||||||||||||||||||||||
7. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the most advantageous market in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and establishes the following three levels of inputs that may be used to measure fair value:
•Level 1 — Quoted prices for identical assets or liabilities in active markets.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
•Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Cash and Cash Equivalents, Contracts-In-Transit and Vehicle Receivables, Accounts and Notes Receivable, Accounts Payable, Variable Rate Long-Term Debt and Floorplan Notes Payable
The fair values of these financial instruments approximate their carrying values due to the short-term nature of the instruments and/or the existence of variable interest rates.
Fixed Rate Long-Term Debt
The Company estimates the fair value of its $750.0 million 4.00 % Senior Notes due August 2028 (“4.00 % Senior Notes”) and the $500 million 6.375 % Senior Notes due January 2030 (“6.375 % Senior Notes”) using quoted prices for the identical liability (Level 1) and estimates the fair value of its fixed-rate mortgage facilities using a present value method based on current market interest rates for similar types of financial instruments (Level 2). Refer to Note 9. Debt for further discussion of the Company’s long-term debt arrangements.
The carrying value and fair value of the Company’s fixed rate long-term debt were as follows (in millions):
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
Carrying Value (1) | Fair Value | Carrying Value (1) | Fair Value | |||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Real estate related | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
(1) Carrying value excludes unamortized debt issuance costs.
Derivative Financial Instruments
The Company holds interest rate swaps to hedge against variability of interest payments indexed to SOFR. The Company’s interest rate swaps are measured at fair value utilizing a SOFR forward yield curve matched to the identical maturity term of the instrument being measured. Observable inputs utilized in the income approach valuation method incorporate identical contractual notional amounts, fixed coupon rates, periodic terms for interest payments and contract maturity. The fair value of the interest rate swaps also considers the credit risk of the Company for instruments in a liability position or the counterparty for instruments in an asset position. The credit risk is calculated using the spread between the SOFR yield curve and the relevant interest rate according to rating agencies. The inputs to the fair value measurements reflect Level 2 of the hierarchy framework.
Assets associated with the Company’s interest rate swaps, as reflected gross in the Condensed Consolidated Balance Sheets, were as follows (in millions):
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Assets: | ||||||||||||||
| Other current assets | $ | $ | ||||||||||||
Other long-term assets (1) | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
(1) As of June 30, 2025 and December 31, 2024, the balance included gross fair value of $2.5 million and $3.4 million, respectively, related to the de-designated swaps as described below.
There were no liabilities associated with the Company’s interest rate swaps as of June 30, 2025 and December 31, 2024.
Interest Rate Swaps De-designated as Cash Flow Hedges
As of June 30, 2025, the Company had one de-designated interest rate swap with a notional value of $26.1 million and an interest rate of 0.60 %. The de-designated swap will mature on March 1, 2030. No interest rate swaps were de-designated by the Company during the six months ended June 30, 2025.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
The Company recorded unrealized mark-to-market losses of $0.4 million and $0.9 million and realized gains of $0.2 million and $0.5 million associated with de-designated interest rate swaps within Other interest expense, net, for the three and six months ended June 30, 2025, respectively. The Company recorded unrealized mark-to-market gains of $0.2 million and $0.5 million and realized gains of $0.4 million and $0.8 million associated with de-designated interest rate swaps within Other interest expense, net, for the three and six months ended June 30, 2024, respectively.
Interest Rate Swaps Designated as Cash Flow Hedges
Interest rate swaps designated as cash flow hedges and the related gains or losses are deferred in stockholders’ equity as a component of AOCI in the Company’s Condensed Consolidated Balance Sheets. The deferred gains or losses are recognized in income in the period in which the related items being hedged are recognized in expense. Monthly contractual settlements of the positions are recognized as Floorplan interest expense or Other interest expense, net, in the Company’s Condensed Consolidated Statements of Operations. Gains or losses for periods where future forecasted hedged transactions are deemed probable of not occurring are reclassified from AOCI into income as Floorplan interest expense or Other interest expense, net.
As of June 30, 2025, the Company held 26 interest rate swaps designated as cash flow hedges with a total notional value of $862.0 million that fixed its underlying SOFR at a weighted average rate of 1.24 %. As of June 30, 2024, the Company held 35 interest rate swaps designated as cash flow hedges with a total notional value of $935.6 million that fixed its underlying SOFR at a weighted average rate of 1.22 %. The maturity dates of the Company’s designated interest rate swaps range between December 31, 2025 and December 31, 2031.
The following tables present the impact of the Company’s interest rate swaps designated as cash flow hedges (in millions):
| Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationship | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Interest rate swaps | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
| Amount Reclassified from Other Comprehensive Income (Loss) into Statements of Operations | ||||||||||||||||||||||||||
| Statement of Operations Classification | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Floorplan interest expense | $ | $ | $ | $ | ||||||||||||||||||||||
| Other interest expense, net | $ | $ | $ | $ | ||||||||||||||||||||||
The amount of gain expected to be reclassified out of AOCI into earnings as an offset to Floorplan interest expense or Other interest expense, net in the next twelve months is $18.7 million.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
8. RECEIVABLES, NET AND CONTRACT ASSETS
The Company’s receivables, net and contract assets consisted of the following (in millions):
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Contracts-in-transit and vehicle receivables, net: | ||||||||||||||
| Contracts-in-transit | $ | $ | ||||||||||||
| Vehicle receivables | ||||||||||||||
| Total contracts-in-transit and vehicle receivables | ||||||||||||||
| Less: allowance for doubtful accounts | ||||||||||||||
| Total contracts-in-transit and vehicle receivables, net | $ | $ | ||||||||||||
| Accounts and notes receivable, net: | ||||||||||||||
| Manufacturer receivables | $ | $ | ||||||||||||
| Parts and service receivables | ||||||||||||||
| F&I receivables | ||||||||||||||
| Other | ||||||||||||||
| Total accounts and notes receivable | ||||||||||||||
| Less: allowance for doubtful accounts | ||||||||||||||
| Total accounts and notes receivable, net | $ | $ | ||||||||||||
| Within Other current assets and Other long-term assets: | ||||||||||||||
Total contract assets (1) | $ | $ | ||||||||||||
9. DEBT
Long-term debt consisted of the following (in millions):
| June 30, 2025 | December 31, 2024 | |||||||||||||
| $ | $ | |||||||||||||
| Acquisition Line | ||||||||||||||
| Other Debt: | ||||||||||||||
| Real estate related | ||||||||||||||
| Finance leases | ||||||||||||||
| Other | ||||||||||||||
| Total other debt | ||||||||||||||
| Total debt | ||||||||||||||
| Less: unamortized debt issuance costs | ||||||||||||||
| Less: current maturities | ||||||||||||||
| Total long-term debt | $ | $ | ||||||||||||
Acquisition Line
The proceeds of the Acquisition Line (as defined in Note 10. Floorplan Notes Payable) are used for working capital, general corporate and acquisition purposes. As of June 30, 2025, borrowings under the Acquisition Line, a component of the Revolving Credit Facility (as defined in Note 10. Floorplan Notes Payable), totaled $410.0 million. The average interest rate on this facility was 5.67 % during the three months ended June 30, 2025.
Real Estate Related
The Company has mortgage loans in the U.S. and the U.K. that are paid in installments. As of June 30, 2025, borrowings outstanding under these facilities totaled $1,218.1 million, gross of debt issuance costs, comprised of $792.5 million in the U.S. and $425.6 million in the U.K., respectively.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
10. FLOORPLAN NOTES PAYABLE
The Company’s floorplan notes payable consisted of the following (in millions):
| June 30, 2025 | December 31, 2024 | |||||||||||||
| Revolving Credit Facility — floorplan notes payable | $ | $ | ||||||||||||
| Revolving Credit Facility — floorplan notes payable offset account | ( | ( | ||||||||||||
| Revolving Credit Facility — floorplan notes payable, net | ||||||||||||||
| Other non-manufacturer facilities | ||||||||||||||
| Floorplan notes payable — credit facility and other, net | $ | $ | ||||||||||||
| FMCC Facility | $ | $ | ||||||||||||
| FMCC Facility offset account | ( | |||||||||||||
| FMCC Facility, net | ||||||||||||||
| GM Financial Facility | ||||||||||||||
| Other manufacturer affiliate facilities | ||||||||||||||
| Floorplan notes payable — manufacturer affiliates, net | $ | $ | ||||||||||||
Floorplan Notes Payable — Credit Facility
Revolving Credit Facility
On May 30, 2025, in the U.S., the Company entered into an amended revolving syndicated credit arrangement that matures on May 30, 2030, with 18 participating financial institutions (the “Revolving Credit Facility”). In addition to extending the term, the amendment increased the availability from $2.5 billion to $3.5 billion, with the ability to increase to $4.5 billion, subject to lender approval. The Revolving Credit Facility consists of two tranches: (i) a $1.75 billion maximum capacity tranche for U.S. vehicle inventory floorplan financing (“U.S. Floorplan Line”) which the outstanding balance, net of offset account discussed below, is reported in Floorplan notes payable — credit facility and other, net; and (ii) a $1.75 billion maximum capacity tranche (“Acquisition Line”), which is not due until maturity of the Revolving Credit Facility and is therefore classified in Long-term debt on the Condensed Consolidated Balance Sheets. Refer to Note 9. Debt for additional discussion. The capacity under these two tranches can be re-designated within the overall $3.5 billion commitment. The Acquisition Line includes a $100.0 million sub-limit for letters of credit and a $50.0 million minimum capacity tranche. The Company had $11.8
The U.S. Floorplan Line bears interest at rates equal to SOFR plus 120 basis points for new vehicle inventory and SOFR plus 150 basis points for used vehicle inventory. The weighted average interest rate on the U.S. Floorplan Line was 5.65 % as of June 30, 2025, excluding the impact of the Company’s interest rate swap derivative instruments. The Acquisition Line bears interest at SOFR or a SOFR equivalent plus 110 to 210 basis points, depending on the Company’s total adjusted leverage ratio, on borrowings in USD, Euros or GBP. The U.S. Floorplan Line requires a commitment fee of 0.15 % per annum on the unused portion. Amounts borrowed by the Company under the U.S. Floorplan Line for specific vehicle inventory are to be repaid upon the sale of the vehicle financed and in no case is a borrowing for a vehicle to remain outstanding for greater than one year. The Acquisition Line requires a commitment fee ranging from 0.15 % to 0.40 % per annum, depending on the Company’s total adjusted leverage ratio, based on a minimum commitment of $50.0 million less outstanding borrowings.
In conjunction with the Revolving Credit Facility, the Company had $8.7 million and $3.1 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024, respectively, which are included in Prepaid expenses and Other long-term assets in the Company’s Condensed Consolidated Balance Sheets and amortized over the term of the facility.
Floorplan Notes Payable — Manufacturer Affiliates
FMCC Facility
The Company has a $200.0 million floorplan arrangement with FMCC for financing of new Ford vehicles in the U.S. (the “FMCC Facility”). The FMCC Facility bears interest at the U.S. prime rate which was 7.50 % as of June 30, 2025.
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
GM Financial Facility
The Company has a master loan agreement with General Motors Financial for financing of new GM vehicles (the “GM Financial Facility”). The GM Financial Facility bears interest at the U.S. prime rate less 100 basis points. As of June 30, 2025, the GM Financial Facility had a total borrowing capacity of $348.1 million.
Other Manufacturer Facilities
The Company has other credit facilities in the U.S. and the U.K., respectively, with financial institutions affiliated with manufacturers for financing of new, used and rental vehicle inventories. As of June 30, 2025, borrowings outstanding under these facilities totaled $426.9 million, comprised of $195.6 million in the U.S. and $231.4 million in the U.K., with annual interest rates ranging from approximately 0.3 % to 8 %. Interest rates on the Company’s manufacturer facilities vary across manufacturers.
Offset Accounts
Offset accounts consist of immediately available cash used to pay down the U.S. Floorplan Line, FMCC Facility and GM Financial Facility, and therefore offset the respective outstanding balances in the Company’s Condensed Consolidated Balance Sheets. The offset accounts are the Company’s primary options for the short-term investment of excess cash.
During the three months ended June 30, 2025, the Company entered into an addendum to the master loan agreement with General Motors Financial and established an offset account under the GM Financial Facility (the “GM Floorplan Offset”). As of June 30, 2025, the balance for the GM Floorplan Offset was $— .
11. CASH FLOW INFORMATION
Non-Cash Activities
The accrual for capital expenditures was $2.4 million and $9.0 million as of June 30, 2025 and December 31, 2024, respectively.
Interest and Income Taxes Paid
Cash paid for interest, including the monthly settlement of the Company’s interest rate swaps, was $128.5 million and $99.9 million for the six months ended June 30, 2025 and 2024, respectively. Refer to Note 7. Financial Instruments and Fair Value Measurements for further discussion of the Company’s interest rate swaps.
Cash paid for income taxes, net of refunds, was $52.1 million and $75.1 million for the six months ended June 30, 2025 and 2024, respectively.
12. COMMITMENTS AND CONTINGENCIES
From time to time, the Company or its dealerships are named in various types of litigation involving customer claims, employment matters, class action claims, purported class action claims, claims involving the manufacturers of automobiles, contractual disputes, vehicle related incidents and other matters arising in the ordinary course of business. The Company may be involved in legal proceedings or suffer losses that could have a material adverse effect on the Company’s results of operations, financial condition or cash flows. In the normal course of business, the Company is required to respond to customer, employee and other third-party complaints. In addition, the manufacturers of the vehicles that the Company sells and services have audit rights allowing them to review the validity of amounts claimed for incentive, rebate or warranty-related items and charge the Company back for amounts determined to be invalid payments under the manufacturers’ programs, subject to the Company’s right to appeal any such decision.
Legal Proceedings
As of June 30, 2025, the Company was not party to any legal proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. However, the results of current or future matters cannot be predicted with certainty; an unfavorable resolution of one or more of such matters could have a material adverse effect on the Company’s results of operations, financial condition or cash flows.
Other Matters
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GROUP 1 AUTOMOTIVE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)
13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Changes in the balances of each component of AOCI were as follows (in millions):
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||
| Accumulated Income (Loss) On Foreign Currency Translation | Accumulated Income (Loss) On Interest Rate Swaps | Total | |||||||||||||||||||||
Balance, December 31, 2024 | $ | ( | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||
| Pre-tax | ( | ||||||||||||||||||||||
| Tax effect | |||||||||||||||||||||||
| Amount reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||
| Floorplan interest expense (pre-tax) | ( | ( | |||||||||||||||||||||
| Other interest expense, net (pre-tax) | ( | ( | |||||||||||||||||||||
| Provision for income taxes | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| Accumulated Income (Loss) On Foreign Currency Translation | Accumulated Income (Loss) On Interest Rate Swaps | Total | ||||||||||||||||||
Balance, December 31, 2023 | $ | ( | $ | $ | ||||||||||||||||
| Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
| Pre-tax | ( | |||||||||||||||||||
| Tax effect | ( | ( | ||||||||||||||||||
| Amount reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||||||
| Floorplan interest expense (pre-tax) | ( | ( | ||||||||||||||||||
Other interest expense, net (pre-tax) | ( | ( | ||||||||||||||||||
| Reclassification related to de-designated interest rate swaps (pre-tax) | ( | ( | ||||||||||||||||||
| Provision for income taxes | ||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | ||||||||||||||||||
| Balance, June 30, 2024 | $ | ( | $ | $ | ||||||||||||||||
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements and the notes thereto, as well as our 2024 Form 10-K.
Overview
We are a leading operator in the automotive retail industry. We sell or lease new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts retail and wholesale. We have operations in geographically diverse markets that extend across 17 states in the U.S. and 67 towns and cities in the U.K. As of June 30, 2025, our retail network consisted of 145 dealerships in the U.S. and 113 dealerships in the U.K.
Recent Events
On July 4, 2025, H.R. 1, the One Big Beautiful Bill Act (“OBBBA”), was signed into law. For the automotive industry, the bill provides consumers with a tax deduction for the interest on loans for certain U.S.-assembled vehicles. The bill also eliminates federal Electric Vehicle (“EV”) tax credits for vehicles purchased or leased after September 30, 2025. Additionally, the OBBBA reinstates 100% bonus depreciation for qualified property placed in service after January 19, 2025. This provision allows for immediate expensing for income tax purposes of the full cost of eligible tangible assets, including certain machinery, equipment and building improvements. The impact of the OBBBA on our results of operations cannot be predicted with certainty at this time.
On June 16, 2025, President Donald Trump signed an executive order Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal. This executive order, effective June 23, 2025, operationalizes a landmark trade agreement between the U.S. and the U.K., first announced on May 8, 2025, aimed at enhancing bilateral trade and addressing national security concerns. The order’s key provisions related to the automotive trade include (i) an annual quota allowing 100,000 U.K.-made vehicles to enter the U.S. at a reduced 10 percent tariff (7.5 percent plus 2.5 percent most-favored-nation rate); (ii) any additional imported vehicles each year will be subject to the standard 25 percent tariff rate; and (iii) automotive parts that are products of the U.K. and are for use in U.K.-made vehicles will be subject to a total tariff rate of 10 percent.
The U.K. government has established mandated targets for the sale of new zero emissions vehicles with increasing targets in future years. On April 6, 2025, the U.K. Prime Minister announced planned changes to the EV mandate, which aim to allow carmakers more flexibility in reaching their goal to phase out internal combustion engine vehicles. The plan increases flexibility of the mandate through 2030, allowing more EV’s to be sold in later years as demand increases. Further, the plan allows for the continued sale of hybrid vehicles, which can be operated by both internal combustion and batteries, through 2035 to help ease the transition. Beginning July 16, 2025, U.K. car manufacturers can apply for Electric Car Grants, which will discount eligible new EV’s for consumers at the point of sale. Additionally, on June 12, 2025, President Donald Trump signed resolutions revoking California’s authority to enforce regulations it set forth, including Advanced Clean Cars II (“ACC”), which imposes stricter emissions limits for vehicles and implements a ban on the sale of new gas-powered cars by 2035. California and ten other states set to implement ACC-like rules have sued the Environmental Protection Agency and President Donald Trump and are seeking to enjoin the resolutions. The impact of these changes on our vehicle mix and results of operations cannot be predicted with certainty at this time.
On April 2, 2025, President Donald Trump signed an executive order setting a 10 percent baseline tariff on imports, with higher rates for countries running trade surpluses with the U.S. By April 9, 2025, a follow-up order paused most of the higher reciprocal tariffs for 90 days but kept the 10 percent baseline and raised Chinese tariffs. Throughout the three months ended June 30, 2025 (“Current Quarter”), the U.S and China continued to negotiate the temporary reciprocal lowering of tariffs. On July 7, 2025, President Donald Trump extended the tariff modifications through August 1, 2025.
On March 26, 2025, President Donald Trump signed a proclamation under Section 232 of the Trade Expansion Act imposing a 25 percent tariff on imported automobiles and certain automobile parts. As of July 24, 2025, the procedures required by the Secretary of Commerce to impose these tariffs have not yet been finalized or implemented.
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While the possibility exists for delays, reductions, or exemptions of the automotive and reciprocal tariffs, the potential impacts of the tariffs described above, as well as the reaction of the OEMs to such tariffs, remain uncertain and could significantly increase the price of our products as well as the future mix and demand for vehicles provided by our manufacturers. Additionally, reciprocal tariffs, tariffs on steel, aluminum, copper and other materials, and the elevated tariffs against China and other countries could negatively impact the global economy, demand for our products and our manufacturers’ global supply chains. Our manufacturers’ supply chain dependencies and production facility locations vary by OEM, and as a result, certain manufacturers, vehicle models, vehicle model variations and parts could be affected more significantly by the imposition of tariffs than others. We will continue to monitor the impact of the Trump Administration’s policies and the response of U.S. trading partners on our results of operations in future periods.
We continue to monitor the uncertain macroeconomic and industry conditions in the U.K., including the impact of the tariff agreement between the U.S. and the U.K. outlined above. Although the effect of the macroeconomic environment on our results of operations cannot be predicted with certainty, future negative impacts may require us to assess the goodwill and intangible franchise rights associated with our U.K. reporting unit for impairment, which could result in material impairment charges in future periods.
Critical Accounting Policies and Accounting Estimates
For discussion of our critical accounting policies and accounting estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2024 Form 10-K. There have been no material changes to our critical accounting policies or accounting estimates since December 31, 2024.
Results of Operations
The “same store” amounts presented below include the results of dealerships and corporate headquarters for the identical months in each comparative period, commencing with the first full month in which we owned the dealership. Amounts related to divestitures are excluded from each comparative period, ending with the last full month in which we owned the dealership. Same store results provide a measurement of our ability to grow revenues and profitability of our existing stores and also provide a metric for peer group comparisons. For these reasons, same store results allow management to accurately manage and monitor the underlying performance of the business and is also useful to investors.
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. Our primary foreign currency exposure is to the GBP. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than USD using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. Additionally, we caution investors not to place undue reliance on non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures. Our management also uses constant currency and adjusted cash flows from operating, investing and financing activities in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures and the related reconciliations because we believe investors use these metrics in evaluating longer-term period-over-period performance. These metrics also allow investors to better understand and evaluate the information used by management to assess operating performance.
Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.
Retail new and used vehicle units sold include new and used vehicle agency units sold under agency arrangements with certain manufacturers in the U.K. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues as only the sales commission is reported in revenues for dealerships operating under an agency arrangement. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
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The following tables summarize our operating results on a reported basis and on a same store basis:
Reported Operating Data — Consolidated
(In millions, except unit data)
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 2,735.5 | $ | 2,364.2 | $ | 371.3 | 15.7 | % | $ | 33.7 | 14.3 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 1,848.2 | 1,453.2 | 395.0 | 27.2 | % | 35.5 | 24.7 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 163.8 | 104.3 | 59.5 | 57.0 | % | 4.3 | 52.9 | % | ||||||||||||||||||||||||||||||||||||
| Total used | 2,012.0 | 1,557.5 | 454.4 | 29.2 | % | 39.8 | 26.6 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 718.4 | 574.5 | 143.8 | 25.0 | % | 9.0 | 23.5 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 237.8 | 200.1 | 37.6 | 18.8 | % | 2.2 | 17.7 | % | ||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 5,703.5 | $ | 4,696.4 | $ | 1,007.2 | 21.4 | % | $ | 84.7 | 19.6 | % | ||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 198.4 | $ | 170.0 | $ | 28.3 | 16.6 | % | $ | 2.7 | 15.1 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 96.4 | 80.7 | 15.7 | 19.5 | % | 1.5 | 17.6 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 0.5 | (1.1) | 1.6 | 143.8 | % | (0.1) | NM | |||||||||||||||||||||||||||||||||||||
| Total used | 96.9 | 79.5 | 17.4 | 21.8 | % | 1.4 | 20.1 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 402.8 | 316.8 | 85.9 | 27.1 | % | 5.3 | 25.5 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 237.8 | 200.1 | 37.6 | 18.8 | % | 2.2 | 17.7 | % | ||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 935.8 | $ | 766.5 | $ | 169.3 | 22.1 | % | $ | 11.5 | 20.6 | % | ||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.3 | % | 7.2 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 5.2 | % | 5.6 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 0.3 | % | (1.1) | % | 1.4 | % | ||||||||||||||||||||||||||||||||||||||
| Total used | 4.8 | % | 5.1 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 56.1 | % | 55.1 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total gross margin | 16.4 | % | 16.3 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 55,763 | 47,661 | 8,102 | 17.0 | % | |||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 60,240 | 49,260 | 10,980 | 22.3 | % | |||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 17,030 | 11,819 | 5,211 | 44.1 | % | |||||||||||||||||||||||||||||||||||||||
| Total used | 77,270 | 61,079 | 16,191 | 26.5 | % | |||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 50,557 | $ | 49,996 | $ | 561 | 1.1 | % | $ | 617 | (0.1) | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 30,713 | $ | 29,501 | $ | 1,212 | 4.1 | % | $ | 590 | 2.1 | % | ||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,557 | $ | 3,568 | $ | (11) | (0.3) | % | $ | 48 | (1.7) | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,600 | $ | 1,638 | $ | (37) | (2.3) | % | $ | 25 | (3.8) | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 29 | $ | (96) | $ | 125 | 130.4 | % | $ | (6) | 136.6 | % | ||||||||||||||||||||||||||||||||
| Total used | $ | 1,254 | $ | 1,302 | $ | (48) | (3.7) | % | $ | 18 | (5.1) | % | ||||||||||||||||||||||||||||||||
| F&I PRU | $ | 2,050 | $ | 2,065 | $ | (15) | (0.7) | % | $ | 19 | (1.6) | % | ||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 646.1 | $ | 497.2 | $ | 148.9 | 29.9 | % | $ | 9.6 | 28.0 | % | ||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 69.0 | % | 64.9 | % | 4.2 | % | ||||||||||||||||||||||||||||||||||||||
| Floorplan expense: | ||||||||||||||||||||||||||||||||||||||||||||
| Floorplan interest expense | $ | 26.4 | $ | 24.7 | $ | 1.8 | 7.1 | % | $ | 0.3 | 5.8 | % | ||||||||||||||||||||||||||||||||
Less: floorplan assistance (1) | 22.6 | 21.0 | 1.6 | 7.8 | % | — | 7.8 | % | ||||||||||||||||||||||||||||||||||||
| Net floorplan expense | $ | 3.8 | $ | 3.7 | $ | 0.1 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||
(1) Floorplan assistance is included within Gross profit — New vehicle retail sales above and Cost of sales — New vehicle retail sales in our Condensed Consolidated Statements of Operations.
NM — Not Meaningful
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Same Store Operating Data — Consolidated
(In millions, except unit data)
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 2,457.1 | $ | 2,331.6 | $ | 125.5 | 5.4 | % | $ | 19.2 | 4.6 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 1,533.1 | 1,436.8 | 96.3 | 6.7 | % | 18.7 | 5.4 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 121.5 | 103.0 | 18.6 | 18.0 | % | 2.0 | 16.1 | % | ||||||||||||||||||||||||||||||||||||
| Total used | 1,654.7 | 1,539.8 | 114.9 | 7.5 | % | 20.7 | 6.1 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 633.7 | 564.7 | 69.0 | 12.2 | % | 4.5 | 11.4 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 219.0 | 198.1 | 20.9 | 10.6 | % | 1.2 | 10.0 | % | ||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,964.5 | $ | 4,634.2 | $ | 330.3 | 7.1 | % | $ | 45.5 | 6.1 | % | ||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 172.5 | $ | 167.3 | $ | 5.2 | 3.1 | % | $ | 1.4 | 2.3 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 84.2 | 79.4 | 4.8 | 6.1 | % | 0.9 | 5.0 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 0.9 | (1.2) | 2.1 | NM | (0.1) | NM | ||||||||||||||||||||||||||||||||||||||
| Total used | 85.1 | 78.2 | 6.9 | 8.9 | % | 0.8 | 7.9 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 355.1 | 311.5 | 43.6 | 14.0 | % | 2.7 | 13.1 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 219.0 | 198.1 | 20.9 | 10.6 | % | 1.2 | 10.0 | % | ||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 831.7 | $ | 755.1 | $ | 76.6 | 10.1 | % | $ | 6.0 | 9.3 | % | ||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.0 | % | 7.2 | % | (0.2) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 5.5 | % | 5.5 | % | — | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 0.7 | % | (1.2) | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total used | 5.1 | % | 5.1 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 56.0 | % | 55.2 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total gross margin | 16.8 | % | 16.3 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 48,565 | 46,880 | 1,685 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 50,968 | 48,595 | 2,373 | 4.9 | % | |||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 13,420 | 11,587 | 1,833 | 15.8 | % | |||||||||||||||||||||||||||||||||||||||
| Total used | 64,388 | 60,182 | 4,206 | 7.0 | % | |||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 51,028 | $ | 50,136 | $ | 892 | 1.8 | % | $ | 395 | 1.0 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 30,106 | $ | 29,567 | $ | 539 | 1.8 | % | $ | 367 | 0.6 | % | ||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,552 | $ | 3,569 | $ | (18) | (0.5) | % | $ | 28 | (1.3) | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,653 | $ | 1,634 | $ | 18 | 1.1 | % | $ | 17 | 0.1 | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 66 | $ | (107) | $ | 173 | NM | $ | (7) | NM | ||||||||||||||||||||||||||||||||||
| Total used | $ | 1,322 | $ | 1,299 | $ | 23 | 1.8 | % | $ | 12 | 0.8 | % | ||||||||||||||||||||||||||||||||
| F&I PRU | $ | 2,200 | $ | 2,075 | $ | 125 | 6.0 | % | $ | 12 | 5.5 | % | ||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 553.8 | $ | 506.9 | $ | 46.9 | 9.2 | % | $ | 4.8 | 8.3 | % | ||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 66.6 | % | 67.1 | % | (0.5) | % | ||||||||||||||||||||||||||||||||||||||
NM — Not Meaningful
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Reported Operating Data — Consolidated
(In millions, except unit data)
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 5,415.4 | $ | 4,546.8 | $ | 868.6 | 19.1 | % | $ | 34.1 | 18.4 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 3,603.6 | 2,870.0 | 733.6 | 25.6 | % | 31.5 | 24.5 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 315.4 | 210.3 | 105.0 | 49.9 | % | 4.0 | 48.0 | % | ||||||||||||||||||||||||||||||||||||
| Total used | 3,919.0 | 3,080.3 | 838.7 | 27.2 | % | 35.5 | 26.1 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 1,410.4 | 1,150.8 | 259.7 | 22.6 | % | 7.9 | 21.9 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 464.0 | 389.0 | 75.0 | 19.3 | % | 2.0 | 18.8 | % | ||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 11,208.8 | $ | 9,166.9 | $ | 2,041.9 | 22.3 | % | $ | 79.4 | 21.4 | % | ||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 388.0 | $ | 329.6 | $ | 58.4 | 17.7 | % | $ | 2.8 | 16.9 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 189.9 | 162.7 | 27.2 | 16.7 | % | 1.3 | 15.9 | % | ||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.0 | (2.0) | 4.1 | NM | (0.1) | NM | ||||||||||||||||||||||||||||||||||||||
| Total used | 192.0 | 160.7 | 31.3 | 19.5 | % | 1.2 | 18.7 | % | ||||||||||||||||||||||||||||||||||||
| Parts and service sales | 783.8 | 629.9 | 153.9 | 24.4 | % | 4.7 | 23.7 | % | ||||||||||||||||||||||||||||||||||||
| F&I, net | 464.0 | 389.0 | 75.0 | 19.3 | % | 2.0 | 18.8 | % | ||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 1,827.7 | $ | 1,509.1 | $ | 318.6 | 21.1 | % | $ | 10.7 | 20.4 | % | ||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.2 | % | 7.2 | % | (0.1) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 5.3 | % | 5.7 | % | (0.4) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 0.6 | % | (1.0) | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||
| Total used | 4.9 | % | 5.2 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 55.6 | % | 54.7 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||
| Total gross margin | 16.3 | % | 16.5 | % | (0.2) | % | ||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 111,862 | 91,963 | 19,899 | 21.6 | % | |||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 119,858 | 98,443 | 21,415 | 21.8 | % | |||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 33,384 | 23,647 | 9,737 | 41.2 | % | |||||||||||||||||||||||||||||||||||||||
| Total used | 153,242 | 122,090 | 31,152 | 25.5 | % | |||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 50,210 | $ | 49,858 | $ | 353 | 0.7 | % | $ | 313 | 0.1 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 30,084 | $ | 29,154 | $ | 931 | 3.2 | % | $ | 263 | 2.3 | % | ||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,469 | $ | 3,584 | $ | (115) | (3.2) | % | $ | 25 | (3.9) | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,585 | $ | 1,653 | $ | (68) | (4.1) | % | $ | 11 | (4.8) | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 61 | $ | (86) | $ | 147 | NM | $ | (2) | NM | ||||||||||||||||||||||||||||||||||
| Total used | $ | 1,253 | $ | 1,316 | $ | (64) | (4.8) | % | $ | 8 | (5.4) | % | ||||||||||||||||||||||||||||||||
| F&I PRU | $ | 2,002 | $ | 2,043 | $ | (41) | (2.0) | % | $ | 9 | (2.4) | % | ||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 1,263.4 | $ | 973.3 | $ | 290.0 | 29.8 | % | $ | 8.5 | 28.9 | % | ||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 69.1 | % | 64.5 | % | 4.6 | % | ||||||||||||||||||||||||||||||||||||||
| Floorplan expense: | ||||||||||||||||||||||||||||||||||||||||||||
| Floorplan interest expense | $ | 53.3 | $ | 45.2 | $ | 8.1 | 18.0 | % | $ | 0.3 | 17.3 | % | ||||||||||||||||||||||||||||||||
Less: floorplan assistance (1) | 43.0 | 39.3 | 3.7 | 9.4 | % | — | 9.5 | % | ||||||||||||||||||||||||||||||||||||
| Net floorplan expense | $ | 10.3 | $ | 5.9 | $ | 4.4 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||
(1) Floorplan assistance is included within Gross Profit — New vehicle retail sales above and Cost of Sales — New vehicle retail sales in our Condensed Consolidated Statements of Operations.
NM — Not Meaningful
26
Table of Contents
Same Store Operating Data — Consolidated
(In millions, except unit data)
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | ||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 4,735.4 | $ | 4,462.4 | $ | 273.0 | 6.1 | % | $ | 19.2 | 5.7 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 2,969.6 | 2,827.8 | 141.8 | 5.0 | % | 16.6 | 4.4 | % | |||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 237.8 | 206.4 | 31.4 | 15.2 | % | 1.9 | 14.3 | % | |||||||||||||||||||||||||||||||||||||||
| Total used | 3,207.4 | 3,034.2 | 173.2 | 5.7 | % | 18.5 | 5.1 | % | |||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 1,223.7 | 1,125.6 | 98.0 | 8.7 | % | 3.9 | 8.4 | % | |||||||||||||||||||||||||||||||||||||||
| F&I, net | 420.8 | 383.2 | 37.6 | 9.8 | % | 1.1 | 9.5 | % | |||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 9,587.2 | $ | 9,005.4 | $ | 581.8 | 6.5 | % | $ | 42.6 | 6.0 | % | |||||||||||||||||||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 322.4 | $ | 323.0 | $ | (0.6) | (0.2) | % | $ | 1.4 | (0.6) | % | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 162.1 | 160.1 | 2.0 | 1.3 | % | 0.8 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 3.4 | (2.2) | 5.5 | NM | (0.1) | NM | |||||||||||||||||||||||||||||||||||||||||
| Total used | 165.4 | 157.9 | 7.6 | 4.8 | % | 0.7 | 4.3 | % | |||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 677.8 | 616.3 | 61.5 | 10.0 | % | 2.4 | 9.6 | % | |||||||||||||||||||||||||||||||||||||||
| F&I, net | 420.8 | 383.2 | 37.6 | 9.8 | % | 1.1 | 9.5 | % | |||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 1,586.4 | $ | 1,480.3 | $ | 106.1 | 7.2 | % | $ | 5.6 | 6.8 | % | |||||||||||||||||||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 6.8 | % | 7.2 | % | (0.4) | % | |||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 5.5 | % | 5.7 | % | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 1.4 | % | (1.1) | % | 2.5 | % | |||||||||||||||||||||||||||||||||||||||||
| Total used | 5.2 | % | 5.2 | % | — | % | |||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 55.4 | % | 54.8 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Total gross margin | 16.5 | % | 16.4 | % | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||
| Units sold: | |||||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 93,963 | 90,033 | 3,930 | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 100,148 | 96,834 | 3,314 | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 26,396 | 23,082 | 3,314 | 14.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total used | 126,544 | 119,916 | 6,628 | 5.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | |||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 50,902 | $ | 49,991 | $ | 911 | 1.8 | % | $ | 205 | 1.4 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 29,667 | $ | 29,203 | $ | 464 | 1.6 | % | $ | 166 | 1.0 | % | |||||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | |||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,431 | $ | 3,587 | $ | (156) | (4.3) | % | $ | 15 | (4.8) | % | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,618 | $ | 1,653 | $ | (35) | (2.1) | % | $ | 8 | (2.6) | % | |||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 127 | $ | (95) | $ | 222 | NM | $ | (3) | NM | |||||||||||||||||||||||||||||||||||||
| Total used | $ | 1,307 | $ | 1,316 | $ | (9) | (0.7) | % | $ | 6 | (1.1) | % | |||||||||||||||||||||||||||||||||||
| F&I PRU | $ | 2,168 | $ | 2,051 | $ | 117 | 5.7 | % | $ | 6 | 5.4 | % | |||||||||||||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 1,074.7 | $ | 999.6 | $ | 75.1 | 7.5 | % | $ | 4.2 | 7.1 | % | |||||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 67.7 | % | 67.5 | % | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||
NM — Not Meaningful
27
Table of Contents
Reported Operating Data — U.S.
(In millions, except unit data)
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/(Decrease) | % Change | |||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 2,132.9 | $ | 2,009.5 | $ | 123.4 | 6.1 | % | ||||||||||||||||||||||||
| Used vehicle retail sales | 1,203.2 | 1,151.9 | 51.3 | 4.5 | % | |||||||||||||||||||||||||||
| Used vehicle wholesale sales | 86.5 | 78.4 | 8.1 | 10.3 | % | |||||||||||||||||||||||||||
| Total used | 1,289.7 | 1,230.4 | 59.4 | 4.8 | % | |||||||||||||||||||||||||||
| Parts and service sales | 555.5 | 497.4 | 58.1 | 11.7 | % | |||||||||||||||||||||||||||
| F&I, net | 199.0 | 183.9 | 15.1 | 8.2 | % | |||||||||||||||||||||||||||
| Total revenues | $ | 4,177.2 | $ | 3,921.2 | $ | 256.0 | 6.5 | % | ||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 150.5 | $ | 144.3 | $ | 6.2 | 4.3 | % | ||||||||||||||||||||||||
| Used vehicle retail sales | 68.6 | 65.8 | 2.8 | 4.3 | % | |||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.5 | 1.3 | 1.2 | 97.6 | % | |||||||||||||||||||||||||||
| Total used | 71.1 | 67.1 | 4.0 | 6.0 | % | |||||||||||||||||||||||||||
| Parts and service sales | 308.1 | 272.5 | 35.7 | 13.1 | % | |||||||||||||||||||||||||||
| F&I, net | 199.0 | 183.9 | 15.1 | 8.2 | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 728.7 | $ | 667.7 | $ | 61.0 | 9.1 | % | ||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.1 | % | 7.2 | % | (0.1) | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 5.7 | % | 5.7 | % | — | % | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.9 | % | 1.6 | % | 1.3 | % | ||||||||||||||||||||||||||
| Total used | 5.5 | % | 5.5 | % | 0.1 | % | ||||||||||||||||||||||||||
| Parts and service sales | 55.5 | % | 54.8 | % | 0.7 | % | ||||||||||||||||||||||||||
| Total gross margin | 17.4 | % | 17.0 | % | 0.4 | % | ||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 41,067 | 39,273 | 1,794 | 4.6 | % | |||||||||||||||||||||||||||
| Retail used vehicles sold | 39,665 | 38,611 | 1,054 | 2.7 | % | |||||||||||||||||||||||||||
| Wholesale used vehicles sold | 9,661 | 8,964 | 697 | 7.8 | % | |||||||||||||||||||||||||||
| Total used | 49,326 | 47,575 | 1,751 | 3.7 | % | |||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 51,938 | $ | 51,169 | $ | 769 | 1.5 | % | ||||||||||||||||||||||||
| Used vehicle retail | $ | 30,335 | $ | 29,834 | $ | 501 | 1.7 | % | ||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,664 | $ | 3,674 | $ | (10) | (0.3) | % | ||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,730 | $ | 1,705 | $ | 25 | 1.5 | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 259 | $ | 141 | $ | 118 | 83.3 | % | ||||||||||||||||||||||||
| Total used | $ | 1,442 | $ | 1,410 | $ | 32 | 2.3 | % | ||||||||||||||||||||||||
| F&I PRU | $ | 2,465 | $ | 2,361 | $ | 104 | 4.4 | % | ||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 471.6 | $ | 417.6 | $ | 53.9 | 12.9 | % | ||||||||||||||||||||||||
| SG&A as % gross profit | 64.7 | % | 62.5 | % | 2.2 | % | ||||||||||||||||||||||||||
28
Table of Contents
Same Store Operating Data — U.S.
(In millions, except unit data)
| Three Months Ended June 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/(Decrease) | % Change | ||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 2,116.0 | $ | 1,977.0 | $ | 139.0 | 7.0 | % | |||||||||||||||||||||
| Used vehicle retail sales | 1,193.4 | 1,135.5 | 57.9 | 5.1 | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | 85.4 | 77.1 | 8.3 | 10.7 | % | ||||||||||||||||||||||||
| Total used | 1,278.8 | 1,212.6 | 66.2 | 5.5 | % | ||||||||||||||||||||||||
| Parts and service sales | 553.1 | 490.3 | 62.7 | 12.8 | % | ||||||||||||||||||||||||
| F&I, net | 198.1 | 181.8 | 16.2 | 8.9 | % | ||||||||||||||||||||||||
| Total revenues | $ | 4,146.0 | $ | 3,861.8 | $ | 284.2 | 7.4 | % | |||||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 148.7 | $ | 141.6 | $ | 7.1 | 5.0 | % | |||||||||||||||||||||
| Used vehicle retail sales | 68.2 | 64.6 | 3.6 | 5.6 | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.5 | 1.2 | 1.3 | 112.0 | % | ||||||||||||||||||||||||
| Total used | 70.7 | 65.7 | 5.0 | 7.5 | % | ||||||||||||||||||||||||
| Parts and service sales | 306.8 | 268.4 | 38.4 | 14.3 | % | ||||||||||||||||||||||||
| F&I, net | 198.1 | 181.8 | 16.2 | 8.9 | % | ||||||||||||||||||||||||
| Total gross profit | $ | 724.3 | $ | 657.6 | $ | 66.7 | 10.1 | % | |||||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||||||||
| New vehicle retail sales | 7.0 | % | 7.2 | % | (0.1) | % | |||||||||||||||||||||||
| Used vehicle retail sales | 5.7 | % | 5.7 | % | — | % | |||||||||||||||||||||||
| Used vehicle wholesale sales | 2.9 | % | 1.5 | % | 1.4 | % | |||||||||||||||||||||||
| Total used | 5.5 | % | 5.4 | % | 0.1 | % | |||||||||||||||||||||||
| Parts and service sales | 55.5 | % | 54.7 | % | 0.7 | % | |||||||||||||||||||||||
| Total gross margin | 17.5 | % | 17.0 | % | 0.4 | % | |||||||||||||||||||||||
| Units sold: | |||||||||||||||||||||||||||||
| Retail new vehicles sold | 40,802 | 38,492 | 2,310 | 6.0 | % | ||||||||||||||||||||||||
| Retail used vehicles sold | 39,416 | 37,946 | 1,470 | 3.9 | % | ||||||||||||||||||||||||
| Wholesale used vehicles sold | 9,591 | 8,732 | 859 | 9.8 | % | ||||||||||||||||||||||||
| Total used | 49,007 | 46,678 | 2,329 | 5.0 | % | ||||||||||||||||||||||||
| Average sales price per unit sold: | |||||||||||||||||||||||||||||
| New vehicle retail | $ | 51,861 | $ | 51,361 | $ | 500 | 1.0 | % | |||||||||||||||||||||
| Used vehicle retail | $ | 30,278 | $ | 29,924 | $ | 354 | 1.2 | % | |||||||||||||||||||||
| Gross profit per unit sold: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,645 | $ | 3,678 | $ | (34) | (0.9) | % | |||||||||||||||||||||
| Used vehicle retail sales | $ | 1,731 | $ | 1,702 | $ | 29 | 1.7 | % | |||||||||||||||||||||
| Used vehicle wholesale sales | $ | 258 | $ | 134 | $ | 124 | 93.0 | % | |||||||||||||||||||||
| Total used | $ | 1,443 | $ | 1,409 | $ | 34 | 2.4 | % | |||||||||||||||||||||
| F&I PRU | $ | 2,469 | $ | 2,379 | $ | 90 | 3.8 | % | |||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
| SG&A expenses | $ | 466.8 | $ | 428.7 | $ | 38.1 | 8.9 | % | |||||||||||||||||||||
| SG&A as % gross profit | 64.5 | % | 65.2 | % | (0.7) | % | |||||||||||||||||||||||
29
Table of Contents
U.S. Region — Three Months Ended June 30, 2025 Compared to 2024
Revenues
Total revenues in the U.S. during the Current Quarter increased $256.0 million, or 6.5%, as compared to the three months ended June 30, 2024 (“Prior Year Quarter”), driven by higher same store revenues offset by the disposition of stores subsequent to the Prior Year Quarter.
Total same store revenues in the U.S. during the Current Quarter increased $284.2 million, or 7.4%, as compared to the Prior Year Quarter. This increase was driven by higher revenues across all business lines.
New vehicle retail same store revenues outperformed the Prior Year Quarter, driven by more units sold, coupled with higher pricing. This outperformance reflects the resiliency of demand.
We ended the Current Quarter with a U.S. new vehicle inventory supply of 48 days, 14 days lower than the Prior Year Quarter.
Used vehicle retail same store revenues outperformed the Prior Year Quarter, driven by higher pricing, coupled with more units sold. Used vehicle wholesale same store revenues outperformed the Prior Year Quarter, driven by more units sold, coupled with higher pricing.
Parts and service same store revenues outperformed the Prior Year Quarter, driven by increases in customer pay, warranty and wholesale revenues, partially offset by decreases in collision revenues. We are strategically reducing our smaller collision center footprints and repurposing a portion of that space to traditional service capacity, which we expect to increase returns from the higher margin service business. Same store technician headcount increased through our continued technician recruiting and retention efforts, providing greater capacity to meet increased demand.
F&I same store revenues outperformed the Prior Year Quarter, primarily driven by higher same store new and used vehicle units sold, coupled with improvements to finance income per contract, contributing to higher same store F&I gross profit per unit sold.
Gross Profit
Total gross profit in the U.S. during the Current Quarter increased $61.0 million, or 9.1%, as compared to the Prior Year Quarter, driven by higher same store gross profit, partially offset by the disposition of stores subsequent to the Prior Year Quarter.
Total same store gross profit in the U.S. during the Current Quarter increased $66.7 million, or 10.1%, as compared to the Prior Year Quarter, driven by increases across all business lines.
New vehicle retail same store gross profit outperformed the Prior Year Quarter, driven by an increase in units sold, partially offset by a decrease in new vehicle retail same store gross profit per unit sold.
Used vehicle retail same store gross profit outperformed the Prior Year Quarter, primarily driven by higher same store gross profit per unit sold, coupled with higher same store used vehicle retail units sold as described above for used vehicle retail same store revenues. Used vehicle wholesale same store gross profit outperformed the Prior Year Quarter, driven by an increase in same store gross profit per unit sold, coupled with an increase in same store units sold.
Parts and service same store gross profit outperformed the Prior Year Quarter, as described above for parts and service same store revenues.
F&I same store gross profit outperformed the Prior Year Quarter, as described above for F&I same store revenues.
Total same store gross margin in the U.S. increased 44 basis points, primarily driven by an outperformance in parts and service and used vehicle gross margins. This outperformance was partially offset by a decrease in new vehicle gross margins.
SG&A Expenses
SG&A as a percentage of gross profit increased 217 basis points and decreased 74 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Total SG&A expenses in the U.S. during the Current Quarter increased $53.9 million, or 12.9%, as compared to the Prior Year Quarter, primarily driven by higher same store SG&A expenses and the acquisition of stores. Total same store SG&A expenses in the U.S. during the Current Quarter, increased $38.1 million, or 8.9%, as compared to the Prior Year Quarter, primarily driven by increased employee related costs and third-party services.
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Reported Operating Data — U.S.
(In millions, except unit data)
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/(Decrease) | % Change | |||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 4,101.6 | $ | 3,809.4 | $ | 292.3 | 7.7 | % | ||||||||||||||||||||||||
| Used vehicle retail sales | 2,347.6 | 2,251.4 | 96.2 | 4.3 | % | |||||||||||||||||||||||||||
| Used vehicle wholesale sales | 178.5 | 158.3 | 20.2 | 12.7 | % | |||||||||||||||||||||||||||
| Total used | 2,526.0 | 2,409.7 | 116.3 | 4.8 | % | |||||||||||||||||||||||||||
| Parts and service sales | 1,086.8 | 992.6 | 94.2 | 9.5 | % | |||||||||||||||||||||||||||
| F&I, net | 384.5 | 355.2 | 29.2 | 8.2 | % | |||||||||||||||||||||||||||
| Total revenues | $ | 8,098.9 | $ | 7,566.9 | $ | 532.0 | 7.0 | % | ||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 281.1 | $ | 276.2 | $ | 4.9 | 1.8 | % | ||||||||||||||||||||||||
| Used vehicle retail sales | 134.4 | 132.4 | 2.0 | 1.5 | % | |||||||||||||||||||||||||||
| Used vehicle wholesale sales | 5.1 | 2.7 | 2.4 | 89.6 | % | |||||||||||||||||||||||||||
| Total used | 139.5 | 135.1 | 4.4 | 3.2 | % | |||||||||||||||||||||||||||
| Parts and service sales | 598.6 | 540.3 | 58.3 | 10.8 | % | |||||||||||||||||||||||||||
| F&I, net | 384.5 | 355.2 | 29.2 | 8.2 | % | |||||||||||||||||||||||||||
| Total gross profit | $ | 1,403.7 | $ | 1,306.8 | $ | 96.8 | 7.4 | % | ||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | 6.9 | % | 7.2 | % | (0.4) | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 5.7 | % | 5.9 | % | (0.2) | % | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.8 | % | 1.7 | % | 1.2 | % | ||||||||||||||||||||||||||
| Total used | 5.5 | % | 5.6 | % | (0.1) | % | ||||||||||||||||||||||||||
| Parts and service sales | 55.1 | % | 54.4 | % | 0.6 | % | ||||||||||||||||||||||||||
| Total gross margin | 17.3 | % | 17.3 | % | 0.1 | % | ||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 78,902 | 74,614 | 4,288 | 5.7 | % | |||||||||||||||||||||||||||
| Retail used vehicles sold | 78,278 | 76,496 | 1,782 | 2.3 | % | |||||||||||||||||||||||||||
| Wholesale used vehicles sold | 19,878 | 18,052 | 1,826 | 10.1 | % | |||||||||||||||||||||||||||
| Total used | 98,156 | 94,548 | 3,608 | 3.8 | % | |||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 51,984 | $ | 51,054 | $ | 929 | 1.8 | % | ||||||||||||||||||||||||
| Used vehicle retail | $ | 29,990 | $ | 29,431 | $ | 559 | 1.9 | % | ||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,563 | $ | 3,701 | $ | (139) | (3.7) | % | ||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,717 | $ | 1,731 | $ | (14) | (0.8) | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 255 | $ | 148 | $ | 107 | 72.2 | % | ||||||||||||||||||||||||
| Total used | $ | 1,421 | $ | 1,429 | $ | (8) | (0.6) | % | ||||||||||||||||||||||||
| F&I PRU | $ | 2,446 | $ | 2,351 | $ | 95 | 4.0 | % | ||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 919.0 | $ | 812.5 | $ | 106.5 | 13.1 | % | ||||||||||||||||||||||||
| SG&A as % gross profit | 65.5 | % | 62.2 | % | 3.3 | % | ||||||||||||||||||||||||||
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Same Store Operating Data — U.S.
(In millions, except unit data)
| Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/(Decrease) | % Change | ||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,993.8 | $ | 3,725.0 | $ | 268.7 | 7.2 | % | |||||||||||||||||||||
| Used vehicle retail sales | 2,298.7 | 2,209.2 | 89.5 | 4.1 | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | 174.0 | 154.3 | 19.7 | 12.8 | % | ||||||||||||||||||||||||
| Total used | 2,472.7 | 2,363.6 | 109.2 | 4.6 | % | ||||||||||||||||||||||||
| Parts and service sales | 1,062.7 | 973.1 | 89.6 | 9.2 | % | ||||||||||||||||||||||||
| F&I, net | 377.7 | 349.4 | 28.3 | 8.1 | % | ||||||||||||||||||||||||
| Total revenues | $ | 7,906.9 | $ | 7,411.1 | $ | 495.8 | 6.7 | % | |||||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 270.4 | $ | 269.6 | $ | 0.8 | 0.3 | % | |||||||||||||||||||||
| Used vehicle retail sales | 131.5 | 129.8 | 1.7 | 1.3 | % | ||||||||||||||||||||||||
| Used vehicle wholesale sales | 5.0 | 2.5 | 2.4 | 97.0 | % | ||||||||||||||||||||||||
| Total used | 136.4 | 132.3 | 4.2 | 3.2 | % | ||||||||||||||||||||||||
| Parts and service sales | 583.5 | 529.4 | 54.1 | 10.2 | % | ||||||||||||||||||||||||
| F&I, net | 377.7 | 349.4 | 28.3 | 8.1 | % | ||||||||||||||||||||||||
| Total gross profit | $ | 1,368.0 | $ | 1,280.7 | $ | 87.3 | 6.8 | % | |||||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||||||||
| New vehicle retail sales | 6.8 | % | 7.2 | % | (0.5) | % | |||||||||||||||||||||||
| Used vehicle retail sales | 5.7 | % | 5.9 | % | (0.2) | % | |||||||||||||||||||||||
| Used vehicle wholesale sales | 2.9 | % | 1.6 | % | 1.2 | % | |||||||||||||||||||||||
| Total used | 5.5 | % | 5.6 | % | (0.1) | % | |||||||||||||||||||||||
| Parts and service sales | 54.9 | % | 54.4 | % | 0.5 | % | |||||||||||||||||||||||
| Total gross margin | 17.3 | % | 17.3 | % | — | % | |||||||||||||||||||||||
| Units sold: | |||||||||||||||||||||||||||||
| Retail new vehicles sold | 76,755 | 72,684 | 4,071 | 5.6 | % | ||||||||||||||||||||||||
| Retail used vehicles sold | 76,673 | 74,887 | 1,786 | 2.4 | % | ||||||||||||||||||||||||
| Wholesale used vehicles sold | 19,376 | 17,487 | 1,889 | 10.8 | % | ||||||||||||||||||||||||
| Total used | 96,049 | 92,374 | 3,675 | 4.0 | % | ||||||||||||||||||||||||
| Average sales price per unit sold: | |||||||||||||||||||||||||||||
| New vehicle retail | $ | 52,032 | $ | 51,249 | $ | 783 | 1.5 | % | |||||||||||||||||||||
| Used vehicle retail | $ | 29,981 | $ | 29,501 | $ | 480 | 1.6 | % | |||||||||||||||||||||
| Gross profit per unit sold: | |||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,523 | $ | 3,709 | $ | (186) | (5.0) | % | |||||||||||||||||||||
| Used vehicle retail sales | $ | 1,715 | $ | 1,733 | $ | (18) | (1.0) | % | |||||||||||||||||||||
| Used vehicle wholesale sales | $ | 256 | $ | 144 | $ | 112 | 77.8 | % | |||||||||||||||||||||
| Total used | $ | 1,421 | $ | 1,432 | $ | (11) | (0.8) | % | |||||||||||||||||||||
| F&I PRU | $ | 2,462 | $ | 2,368 | $ | 94 | 4.0 | % | |||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
| SG&A expenses | $ | 902.1 | $ | 841.5 | $ | 60.5 | 7.2 | % | |||||||||||||||||||||
| SG&A as % gross profit | 65.9 | % | 65.7 | % | 0.2 | % | |||||||||||||||||||||||
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U.S. Region — Six Months Ended June 30, 2025 Compared to 2024
Revenues
Total revenues in the U.S. during the six months ended June 30, 2025 (“Current Year”) increased $532.0 million, or 7.0%, as compared to the six months ended June 30, 2024 (“Prior Year”), driven by higher same store revenues and the acquisition of stores.
Total same store revenues in the U.S. during the Current Year increased $495.8 million, or 6.7%, as compared to the Prior Year. This increase was driven by higher revenues across all business lines.
New vehicle retail same store revenues outperformed the Prior Year, driven by more units sold, coupled with higher pricing. This outperformance reflects the resiliency of demand. We ended the Current Year with a U.S. new vehicle inventory supply of 48 days, 14 days lower than the Prior Year.
Used vehicle retail same store revenues outperformed the Prior Year, driven by higher pricing, coupled with more units sold. Used vehicle wholesale same store revenues outperformed the Prior Year, driven by more units sold, coupled with higher pricing.
Parts and service same store revenues outperformed the Prior Year, driven by increases in customer pay, warranty and wholesale revenues, partially offset by a decrease in collision revenues. We are strategically reducing our collision footprint and repurposing a portion of that space to traditional service capacity, which we expect to increase returns from the higher margin service business. Same store technician headcount increased through our continued technician recruiting and retention efforts, providing greater capacity to meet increased demand.
F&I same store revenues outperformed the Prior Year, primarily driven by higher same store new and used vehicle units sold, coupled with higher same store F&I gross profit per unit sold. Improved penetration rates across most product offerings contributed to the higher same store F&I gross profit per unit sold.
Gross Profit
Total gross profit in the U.S. during the Current Year increased $96.8 million, or 7.4%, as compared to the Prior Year, driven by higher same store gross profit and the acquisition of stores.
Total same store gross profit in the U.S. during the Current Year increased $87.3 million, or 6.8%, as compared to the Prior Year, driven by increases across all business lines.
New vehicle retail same store gross profit outperformed the Prior Year, driven by an increase in units sold, partially offset by a decrease in new vehicle retail same store gross profit per unit sold.
Used vehicle retail same store gross profit outperformed the Prior Year, primarily driven by higher same store used vehicle retail units sold, partially offset by lower same store gross profit per unit sold as described above for used vehicle retail same store revenues. Used vehicle wholesale same store gross profit outperformed the Prior Year, driven by an increase in same store gross profit per unit sold, coupled with an increase in same store units sold.
Parts and service same store gross profit outperformed the Prior Year, as described above for parts and service same store revenues.
F&I same store gross profit outperformed the Prior Year, as described above for F&I same store revenues.
Total same store gross margin in the U.S. remained flat for the Current Year as compared to the Prior Year.
SG&A Expenses
SG&A as a percentage of gross profit increased 330 basis points and 23 basis points on an as reported and same store basis, respectively, as compared to the Prior Year.
Total SG&A expenses in the U.S. during the Current Year increased $106.5 million, or 13.1%, as compared to the Prior Year, primarily driven by higher same store SG&A expenses and the acquisition of stores. Total same store SG&A expenses in the U.S. during the Current Year increased $60.5 million, or 7.2%, as compared to the Prior Year, primarily driven by increased employee related costs, third-party services and higher facility related expenses.
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Reported Operating Data — U.K.
(In millions, except unit data)
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 602.5 | $ | 354.6 | $ | 247.9 | 69.9 | % | $ | 33.7 | 60.4 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 645.0 | 301.3 | 343.7 | 114.1 | % | 35.5 | 102.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 77.3 | 25.9 | 51.4 | 198.8 | % | 4.3 | 182.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total used | 722.2 | 327.1 | 395.1 | 120.8 | % | 39.8 | 108.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 162.8 | 77.1 | 85.7 | 111.2 | % | 9.0 | 99.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 38.8 | 16.3 | 22.5 | 138.3 | % | 2.2 | 125.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 1,526.4 | $ | 775.2 | $ | 751.2 | 96.9 | % | $ | 84.7 | 86.0 | % | ||||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 47.9 | $ | 25.7 | $ | 22.1 | 86.0 | % | $ | 2.7 | 75.5 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 27.8 | 14.8 | 12.9 | 87.3 | % | 1.5 | 77.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (2.0) | (2.4) | 0.4 | 16.5 | % | (0.1) | 20.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total used | 25.8 | 12.4 | 13.3 | 107.3 | % | 1.4 | 96.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 94.7 | 44.4 | 50.3 | 113.4 | % | 5.3 | 101.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 38.8 | 16.3 | 22.5 | 138.3 | % | 2.2 | 125.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 207.1 | $ | 98.8 | $ | 108.3 | 109.6 | % | $ | 11.5 | 97.9 | % | ||||||||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.9 | % | 7.3 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 4.3 | % | 4.9 | % | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (2.6) | % | (9.3) | % | 6.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total used | 3.6 | % | 3.8 | % | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 58.1 | % | 57.5 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total gross margin | 13.6 | % | 12.7 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 14,696 | 8,388 | 6,308 | 75.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 20,575 | 10,649 | 9,926 | 93.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 7,369 | 2,855 | 4,514 | 158.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Total used | 27,944 | 13,504 | 14,440 | 106.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 46,163 | $ | 44,235 | $ | 1,928 | 4.4 | % | $ | 2,582 | (1.5) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 31,444 | $ | 28,293 | $ | 3,152 | 11.1 | % | $ | 1,732 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,259 | $ | 3,069 | $ | 189 | 6.2 | % | $ | 183 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,350 | $ | 1,392 | $ | (43) | (3.1) | % | $ | 74 | (8.4) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (272) | $ | (842) | $ | 569 | 67.7 | % | $ | (14) | 69.3 | % | ||||||||||||||||||||||||||||||||||||||
| Total used | $ | 922 | $ | 920 | $ | 2 | 0.2 | % | $ | 51 | (5.3) | % | ||||||||||||||||||||||||||||||||||||||
| F&I PRU | $ | 1,099 | $ | 855 | $ | 244 | 28.6 | % | $ | 61 | 21.5 | % | ||||||||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 174.5 | $ | 79.6 | $ | 94.9 | 119.3 | % | $ | 9.6 | 107.2 | % | ||||||||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 84.3 | % | 80.5 | % | 3.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
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Same Store Operating Data — U.K.
(In millions, except unit data)
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 341.1 | $ | 354.6 | $ | (13.6) | (3.8) | % | $ | 19.2 | (9.2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 339.7 | 301.3 | 38.4 | 12.7 | % | 18.7 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 36.2 | 25.9 | 10.3 | 39.9 | % | 2.0 | 32.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 375.9 | 327.1 | 48.7 | 14.9 | % | 20.7 | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 80.6 | 74.3 | 6.3 | 8.5 | % | 4.5 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 21.0 | 16.3 | 4.7 | 28.7 | % | 1.2 | 21.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 818.5 | $ | 772.4 | $ | 46.2 | 6.0 | % | $ | 45.5 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 23.8 | $ | 25.7 | $ | (2.0) | (7.6) | % | $ | 1.4 | (12.9) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 16.0 | 14.8 | 1.2 | 7.9 | % | 0.9 | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (1.6) | (2.4) | 0.8 | 34.0 | % | (0.1) | 37.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 14.4 | 12.4 | 2.0 | 16.0 | % | 0.8 | 9.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 48.3 | 43.1 | 5.2 | 12.0 | % | 2.7 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 21.0 | 16.3 | 4.7 | 28.7 | % | 1.2 | 21.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 107.4 | $ | 97.5 | $ | 9.9 | 10.1 | % | $ | 6.0 | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.0 | % | 7.3 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 4.7 | % | 4.9 | % | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (4.4) | % | (9.3) | % | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 3.8 | % | 3.8 | % | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 59.9 | % | 58.0 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross margin | 13.1 | % | 12.6 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 7,763 | 8,388 | (625) | (7.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 11,552 | 10,649 | 903 | 8.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 3,829 | 2,855 | 974 | 34.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 15,381 | 13,504 | 1,877 | 13.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 46,376 | $ | 44,235 | $ | 2,141 | 4.8 | % | $ | 2,604 | (1.0) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 29,515 | $ | 28,293 | $ | 1,222 | 4.3 | % | $ | 1,625 | (1.4) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,063 | $ | 3,069 | $ | (6) | (0.2) | % | $ | 174 | (5.9) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,385 | $ | 1,392 | $ | (7) | (0.5) | % | $ | 76 | (5.9) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (414) | $ | (842) | $ | 427 | 50.8 | % | $ | (25) | 53.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total used | $ | 937 | $ | 920 | $ | 17 | 1.9 | % | $ | 51 | (3.6) | % | ||||||||||||||||||||||||||||||||||||||||||||
| F&I PRU | $ | 1,085 | $ | 855 | $ | 230 | 26.9 | % | $ | 60 | 19.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 87.0 | $ | 78.2 | $ | 8.7 | 11.2 | % | $ | 4.8 | 5.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 81.0 | % | 80.2 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
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U.K. Region — Three Months Ended June 30, 2025 Compared to 2024
Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.265 at June 30, 2024, to £1 to $1.372 at June 30, 2025, or an increase in the value of the GBP of 8.4%.
Revenues
Total revenues in the U.K. during the Current Quarter increased $751.2 million, or 96.9%, as compared to the Prior Year Quarter, primarily driven by the acquisition of stores, higher same store revenues, and changes in foreign currency exchange rates.
Total same store revenues in the U.K. during the Current Quarter increased $46.2 million, or 6.0%, as compared to the Prior Year Quarter, primarily driven by outperformances across all lines of business except new vehicle retail. On a constant currency basis, same store revenues increased 0.1%, driven by the same outperformances.
New vehicle retail same store revenues, on a constant currency basis, underperformed the Prior Year Quarter, driven by lower units sold, coupled with lower pricing. The Current Quarter ended with a U.K. new vehicle inventory supply of 32 days, three days lower than the Prior Year Quarter.
Used vehicle retail same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by more units sold, partially offset by lower pricing.
Used vehicle wholesale same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, primarily driven by an increase in wholesale used vehicle units sold.
Parts and service same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in customer pay, partially offset by decreases in warranty, wholesale and collision revenues. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, resulting in an increase in parts and service activity driving an increase in revenues as compared to the Prior Year Quarter.
F&I, net same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by higher income per contract on most of our F&I products, improved penetration rates and an increase in used vehicle retail units sold.
Gross Profit
Total gross profit in the U.K. during the Current Quarter increased $108.3 million, or 109.6%, as compared to the Prior Year Quarter, driven by the acquisition of stores and higher same store gross profit.
Total same store gross profit in the U.K. during the Current Quarter increased $9.9 million, or 10.1%, as compared to the Prior Year Quarter. On a constant currency basis, total same store gross profit increased 4.0%, driven by increases from used vehicle retail, used vehicle wholesale, parts and service and F&I, partially offset by downward pressure on new vehicle retail margins.
New vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year Quarter, primarily due to a decrease in units sold, coupled by a decrease in new vehicle retail gross profit per unit sold as a result of an industry wide increase in vehicle inventory production generating downward pressure on new vehicle margins.
Used vehicle retail same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, driven by an increase in used vehicle retail units sold, partially offset by a decrease in used vehicle retail same store gross profit per unit sold.
Parts and service same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in parts and service same store revenues, as discussed above.
F&I same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, as described above in F&I same store revenues.
Total same store gross margin in the U.K. increased 50 basis points, primarily driven by improvements in parts and service and used vehicle wholesale gross margins. This increase was partially offset by underperformances in new and used vehicle retail gross margins.
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SG&A Expenses
SG&A as a percentage of gross profit increased by 373 and 75 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Total SG&A expenses in the U.K. during the Current Quarter increased $94.9 million, or 119.3%, as compared to the Prior Year Quarter. Total same store SG&A expenses in the U.K. during the Current Quarter increased $8.7 million, or 11.2%, as compared to the Prior Year Quarter. On a constant currency basis, total same store SG&A expenses increased 5.1%. The increases on a total same store basis were primarily driven by outside services and professional fees, coupled with increased employee related costs and facilities fees, offset by lower legal expenses and advertising costs, compared to the Prior Year Quarter.
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Reported Operating Data — U.K.
(In millions, except unit data)
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 1,313.8 | $ | 737.4 | $ | 576.4 | 78.2 | % | $ | 34.1 | 73.5 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 1,256.0 | 618.6 | 637.5 | 103.1 | % | 31.5 | 98.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 136.9 | 52.0 | 84.9 | 163.1 | % | 4.0 | 155.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total used | 1,392.9 | 670.6 | 722.3 | 107.7 | % | 35.5 | 102.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 323.7 | 158.2 | 165.5 | 104.6 | % | 7.9 | 99.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 79.5 | 33.8 | 45.8 | 135.5 | % | 2.0 | 129.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 3,109.9 | $ | 1,600.0 | $ | 1,509.9 | 94.4 | % | $ | 79.4 | 89.4 | % | ||||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 106.9 | $ | 53.4 | $ | 53.5 | 100.2 | % | $ | 2.8 | 95.0 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 55.5 | 30.3 | 25.2 | 83.3 | % | 1.3 | 78.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (3.1) | (4.7) | 1.7 | 35.2 | % | (0.1) | 36.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total used | 52.5 | 25.6 | 26.9 | 105.1 | % | 1.2 | 100.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 185.1 | 89.6 | 95.6 | 106.7 | % | 4.7 | 101.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 79.5 | 33.8 | 45.8 | 135.5 | % | 2.0 | 129.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 424.0 | $ | 202.3 | $ | 221.7 | 109.6 | % | $ | 10.7 | 104.3 | % | ||||||||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 8.1 | % | 7.2 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 4.4 | % | 4.9 | % | (0.5) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (2.2) | % | (9.1) | % | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total used | 3.8 | % | 3.8 | % | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 57.2 | % | 56.6 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total gross margin | 13.6 | % | 12.6 | % | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 32,960 | 17,349 | 15,611 | 90.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 41,580 | 21,947 | 19,633 | 89.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 13,506 | 5,595 | 7,911 | 141.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Total used | 55,086 | 27,542 | 27,544 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 45,327 | $ | 44,459 | $ | 868 | 2.0 | % | $ | 1,174 | (0.7) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 30,261 | $ | 28,185 | $ | 2,076 | 7.4 | % | $ | 760 | 4.7 | % | ||||||||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,243 | $ | 3,078 | $ | 166 | 5.4 | % | $ | 84 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,336 | $ | 1,381 | $ | (45) | (3.2) | % | $ | 32 | (5.6) | % | ||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (226) | $ | (842) | $ | 616 | 73.2 | % | $ | (6) | 73.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total used | $ | 953 | $ | 929 | $ | 24 | 2.6 | % | $ | 23 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
| F&I PRU | $ | 1,067 | $ | 859 | $ | 208 | 24.2 | % | $ | 27 | 21.1 | % | ||||||||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 344.3 | $ | 160.8 | $ | 183.5 | 114.1 | % | $ | 8.5 | 108.8 | % | ||||||||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 81.2 | % | 79.5 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
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Same Store Operating Data — U.K.
(In millions, except unit data)
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 741.7 | $ | 737.4 | $ | 4.3 | 0.6 | % | $ | 19.2 | (2.0) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 670.9 | 618.6 | 52.3 | 8.5 | % | 16.6 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 63.8 | 52.0 | 11.7 | 22.6 | % | 1.9 | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 734.7 | 670.6 | 64.1 | 9.6 | % | 18.5 | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 160.9 | 152.5 | 8.5 | 5.5 | % | 3.9 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 43.0 | 33.8 | 9.3 | 27.5 | % | 1.1 | 24.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 1,680.3 | $ | 1,594.3 | $ | 86.1 | 5.4 | % | $ | 42.6 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 52.0 | $ | 53.4 | $ | (1.4) | (2.5) | % | $ | 1.4 | (5.2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 30.6 | 30.3 | 0.3 | 0.9 | % | 0.8 | (1.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (1.6) | (4.7) | 3.1 | 65.8 | % | (0.1) | 67.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 29.0 | 25.6 | 3.4 | 13.2 | % | 0.7 | 10.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 94.4 | 86.9 | 7.4 | 8.6 | % | 2.4 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| F&I, net | 43.0 | 33.8 | 9.3 | 27.5 | % | 1.1 | 24.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 218.4 | $ | 199.7 | $ | 18.7 | 9.4 | % | $ | 5.6 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 7.0 | % | 7.2 | % | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 4.6 | % | 4.9 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (2.5) | % | (9.1) | % | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 3.9 | % | 3.8 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Parts and service sales | 58.6 | % | 57.0 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross margin | 13.0 | % | 12.5 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 17,208 | 17,349 | (141) | (0.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 23,475 | 21,947 | 1,528 | 7.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 7,020 | 5,595 | 1,425 | 25.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total used | 30,495 | 27,542 | 2,953 | 10.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 45,540 | $ | 44,459 | $ | 1,081 | 2.4 | % | $ | 1,175 | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail | $ | 28,641 | $ | 28,185 | $ | 455 | 1.6 | % | $ | 709 | (0.9) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,024 | $ | 3,078 | $ | (53) | (1.7) | % | $ | 82 | (4.4) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,303 | $ | 1,381 | $ | (78) | (5.6) | % | $ | 34 | (8.1) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (229) | $ | (842) | $ | 612 | 72.7 | % | $ | (13) | 74.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total used | $ | 950 | $ | 929 | $ | 21 | 2.3 | % | $ | 23 | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||
| F&I PRU | $ | 1,058 | $ | 859 | $ | 199 | 23.1 | % | $ | 26 | 20.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 172.6 | $ | 158.1 | $ | 14.5 | 9.2 | % | $ | 4.2 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
| SG&A as % gross profit | 79.0 | % | 79.2 | % | (0.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
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U.K. Region — Six Months Ended June 30, 2025 Compared to 2024
Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.265 at June 30, 2024, to £1 to $1.372 at June 30, 2025, or an increase in the value of the GBP of 8.4%.
Revenues
Total revenues in the U.K. during the Current Year increased $1,509.9 million, or 94.4%, as compared to the Prior Year, primarily driven by the acquisition of stores, higher same stores revenues, and changes in foreign currency exchange rates.
Total same store revenues in the U.K. during the Current Year increased $86.1 million, or 5.4%, as compared to the Prior Year, primarily driven by outperformances across all lines of business except new vehicle retail. On a constant currency basis, same store revenues increased 2.7%, driven by the same outperformances.
New vehicle retail same store revenues, on a constant currency basis, underperformed the Prior Year, driven by less units sold. We ended the Current Year with a U.K. new vehicle inventory supply of 32 days, three days lower than the Prior Year.
Used vehicle retail same store revenues, on a constant currency basis, outperformed the Prior Year, driven by more units sold, partially offset by lower pricing.
Used vehicle wholesale same store revenues, on a constant currency basis, outperformed the Prior Year, primarily driven by an increase in wholesale used vehicle units sold.
Parts and service same store revenues, on a constant currency basis, outperformed the Prior Year, driven by increases in customer pay and collisions revenue, partially offset by decreases in warranty and wholesale revenues. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, resulting in an increase in parts and service activity driving an increase in revenues as compared to the Prior Year.
F&I, net same store revenues, on a constant currency basis, outperformed the Prior Year, driven by higher income per contract on most of our F&I products, improved penetration rates and an increase in used vehicle retail units sold.
Gross Profit
Total gross profit in the U.K. during the Current Year increased $221.7 million, or 109.6%, as compared to the Prior Year Quarter, driven by the acquisition of stores and higher same store gross profit.
Total same store gross profit in the U.K. during the Current Year increased $18.7 million, or 9.4%, as compared to the Prior Year. On a constant currency basis, total same store gross profit increased 6.6%, driven by increases in used vehicle wholesale, parts and services and F&I, partially offset by downward pressure on new and used vehicle retail margins.
New vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year, primarily due to a decrease in units sold, coupled with a decrease in new vehicle retail gross profit per unit sold.
Used vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year, driven by a decrease in used vehicle retail same store gross profit per unit sold, partially offset by an increase in used vehicle retail units sold.
Parts and service same store gross profit, on a constant currency basis, outperformed the Prior Year, driven by increases in parts and service same store revenues, as discussed above.
F&I same store gross profit, on a constant currency basis, outperformed the Prior Year, as described above in F&I same store revenues.
Total same store gross margin in the U.K. increased 47 basis points, primarily driven by improvements in parts and service and used vehicle wholesale gross margins. This increase was partially offset by underperformances in new and used vehicle retail gross margins.
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SG&A Expenses
SG&A as a percentage of gross profit increased by 170 and decreased by 15 basis points on an as reported and same store basis, respectively, compared to the Prior Year.
Total SG&A expenses in the U.K. during the Current Year increased $183.5 million, or 114.1%, as compared to the Prior Year. Total same store SG&A expenses in the U.K. during the Current Year increased $14.5 million, or 9.2%, as compared to the Prior Year. On a constant currency basis, total same store SG&A expenses increased 6.5%. These increases on a total same store basis were primarily driven by fees associated with acquisitions, coupled with increased employee related costs and facilities fees, offset by lower legal expenses and advertising costs, compared to the Prior Year.
Consolidated Selected Comparisons — Three and Six Months Ended June 30, 2025 Compared to 2024
The following table (in millions) and discussion of our results of operations are on a consolidated basis, unless otherwise noted.
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | |||||||||||||||||||||||
| Depreciation and amortization expense | $ | 28.7 | $ | 28.2 | $ | 0.5 | 1.9 | % | ||||||||||||||||||
| Asset impairments | $ | 0.4 | $ | — | $ | 0.4 | 100.0 | % | ||||||||||||||||||
| Restructuring charges | $ | 7.6 | $ | — | $ | 7.6 | 100.0 | % | ||||||||||||||||||
| Floorplan interest expense | $ | 26.4 | $ | 24.7 | $ | 1.8 | 7.1 | % | ||||||||||||||||||
| Other interest expense, net | $ | 42.7 | $ | 33.4 | $ | 9.3 | 27.9 | % | ||||||||||||||||||
| Provision for income taxes | $ | 44.0 | $ | 45.2 | $ | (1.1) | (2.5) | % | ||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | Increase/ (Decrease) | % Change | |||||||||||||||||||||||
| Depreciation and amortization expense | $ | 58.0 | $ | 52.0 | $ | 6.0 | 11.5 | % | ||||||||||||||||||
| Asset impairments | $ | 0.8 | $ | — | $ | 0.8 | 100.0 | % | ||||||||||||||||||
| Restructuring Charges | $ | 18.7 | $ | — | $ | 18.7 | 100.0 | % | ||||||||||||||||||
| Floorplan interest expense | $ | 53.3 | $ | 45.2 | $ | 8.1 | 18.0 | % | ||||||||||||||||||
| Other interest expense, net | $ | 82.5 | $ | 62.7 | $ | 19.8 | 31.5 | % | ||||||||||||||||||
| Provision for income taxes | $ | 83.8 | $ | 91.0 | $ | (7.2) | (8.0) | % | ||||||||||||||||||
Depreciation and Amortization Expense
Depreciation and amortization expense for the Current Quarter and Current Year was higher compared to the Prior Year Quarter and Prior Year, primarily driven by acquired property and equipment in our U.S. and U.K. regions, as we continue to strategically add dealership related real estate and facilities to our investment portfolio and make improvements to our existing facilities intended to enhance the profitability of our dealerships and improve the overall customer experience.
Asset Impairments
Asset impairments totaled $0.4 million in the Current Quarter and $0.8 million in the Current Year. During the Current Year, we recognized an impairment charge of $2.7 million associated with the termination of certain franchises in the U.K., partially offset by a $2.3 million gain recognized as a result of an increase in value during the Current Year of previously impaired assets held for sale.
Restructuring Charges
During the Current Quarter and Current Year, we incurred $7.6 million and $18.7 million of restructuring charges, respectively. Restructuring charges primarily consist of planned workforce realignment, strategic closing of certain facilities and systems integrations, among other efforts to increase operational efficiency and profitability in connection with the integration of the Inchcape Retail acquisition with our U.K. business.
Refer to Note 4. Restructuring within our Notes to Condensed Consolidated Financial Statements for further discussion of our restructuring plan.
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Floorplan Interest Expense
Our floorplan interest expense fluctuates with changes in our outstanding borrowings and associated interest rates, which are based on SOFR, the U.S. prime rate or other benchmark rates. Outstanding borrowings largely fluctuate based on our levels of new and used vehicle inventory. To mitigate the impact of interest rate fluctuations, we employ an interest rate hedging strategy, whereby we swap variable interest rate exposure on a portion of our borrowings for a fixed interest rate.
Total floorplan interest expense during the Current Quarter increased $1.8 million, or 7.1%, as compared to the Prior Year Quarter. For the Current Year, floorplan interest expense increased $8.1 million, or 18.0%, as compared to the Prior Year. The increase in floorplan interest expense during the Current Quarter and Current Year was driven primarily by an increase in used vehicle inventories.
Refer to Note 7. Financial Instruments and Fair Value Measurements within our Notes to Condensed Consolidated Financial Statements for additional discussion of interest rate swaps.
Other Interest Expense, Net
Other interest expense, net consists of interest charges primarily on our 4.00% Senior Notes, 6.375% Senior Notes, real estate related debt and other debt, partially offset by interest income.
Other interest expense, net during the Current Quarter, increased $9.3 million, or 27.9%, as compared to the Prior Year Quarter. For the Current Year, other interest expense, net, increased $19.8 million, or 31.5%, as compared to the Prior Year. The increase in other interest expense, net during the Current Quarter and Current Year was primarily attributable to interest expense associated with the 6.375% Senior Notes issued in 2024, as well as additional interest expense attributable to other debt. Refer to Note 9. Debt within our Notes to Condensed Consolidated Financial Statements for additional discussion of our debt.
Provision for Income Taxes
Provision for income taxes of $44.0 million during the Current Quarter decreased by $1.1 million, or 2.5%, as compared to the Prior Year Quarter. For the Current Year, our provision for income taxes of $83.8 million decreased by $7.2 million, or 8.0%, as compared to the Prior Year. The tax expense decrease and the tax rate decrease in the Current Quarter and Current Year, as compared to the Prior Year Quarter and Prior Year, were primarily due to lower taxable gains on asset dispositions.
We believe that it is more-likely-than-not that our deferred tax assets, net of valuation allowances provided, will be realized, based primarily on assumptions of our future taxable income, considering future reversals of existing taxable temporary differences.
Liquidity and Capital Resources
Our liquidity and capital resources are primarily derived from cash on hand, cash temporarily invested as a pay down of our U.S. Floorplan Line and FMCC Facility levels (refer to Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for additional information), cash from operations, borrowings under our credit facilities, working capital, dealership and real estate acquisition financing and proceeds from debt and equity offerings. We anticipate we will generate sufficient cash flows from operations, coupled with cash on hand and available borrowing capacity under our credit facilities, to fund our working capital requirements, service our debt and meet any other recurring operating expenditures.
Available Liquidity Resources
We had the following sources of liquidity available (in millions):
| June 30, 2025 | |||||
| Cash and cash equivalents | $ | 52.7 | |||
| Floorplan offset accounts | 321.0 | ||||
| Available capacity under Acquisition Line | 738.6 | ||||
| Total liquidity | $ | 1,112.3 | |||
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Cash Flows
We arrange our new and used vehicle inventory floorplan financing through lenders affiliated with our vehicle manufacturers and our Revolving Credit Facility. In accordance with U.S. GAAP, we report floorplan financed with lenders affiliated with our vehicle manufacturers (excluding the cash flows from or to manufacturer-affiliated lenders participating in our syndicated lending group) within Cash Flows from Operating Activities in the Condensed Consolidated Statements of Cash Flows. We report floorplan financed with the Revolving Credit Facility (including the cash flows from or to manufacturer-affiliated lenders participating in the facility) and other credit facilities in the U.K. unaffiliated with our manufacturer partners, within Cash Flows from Financing Activities in the Condensed Consolidated Statements of Cash Flows. Refer to Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for additional discussion of our Revolving Credit Facility.
However, we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity. As a result, we use the non-GAAP measure “Adjusted net cash provided by/used in operating activities” and “Adjusted net cash provided by/used in financing activities” to further evaluate our cash flows. We believe that this classification eliminates excess volatility in our operating cash flows prepared in accordance with U.S. GAAP. In addition, floorplan financing associated with dealership acquisitions and dispositions are classified as investing activities on an adjusted basis to eliminate excess volatility in our operating cash flows prepared in accordance with U.S. GAAP.
The following table reconciles cash flows on a U.S. GAAP basis to the corresponding adjusted amounts (in millions):
| Six Months Ended June 30, | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
| Net cash provided by operating activities: | $ | 410.3 | $ | 129.8 | ||||||||||||||||
| Change in Floorplan notes payable — credit facilities and other, excluding floorplan offset and net acquisitions and dispositions | (58.0) | 195.7 | ||||||||||||||||||
| Change in Floorplan notes payable — manufacturer affiliates associated with net acquisitions and dispositions and floorplan offset activity | (2.0) | (23.8) | ||||||||||||||||||
| Adjusted net cash provided by operating activities | $ | 350.4 | $ | 301.7 | ||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
| Net cash used in investing activities: | $ | (371.3) | $ | (669.0) | ||||||||||||||||
| Change in cash paid for acquisitions, associated with Floorplan notes payable | 26.8 | 50.3 | ||||||||||||||||||
| Change in proceeds from disposition of franchises, property and equipment, associated with Floorplan notes payable | (18.2) | (25.3) | ||||||||||||||||||
| Adjusted net cash used in investing activities | $ | (362.7) | $ | (644.0) | ||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
| Net cash (used in) provided by financing activities: | $ | (27.2) | $ | 546.4 | ||||||||||||||||
| Change in Floorplan notes payable, excluding floorplan offset | 51.2 | (197.0) | ||||||||||||||||||
| Adjusted net cash provided by financing activities | $ | 24.1 | $ | 349.4 | ||||||||||||||||
Sources and Uses of Liquidity from Operating Activities — Six Months Ended June 30, 2025 Compared to 2024
For the Current Year, net cash provided by operating activities increased by $280.6 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by operating activities increased by $48.7 million. The increase on an adjusted basis was primarily driven by a $46.7 million decrease in non-cash gain on disposition of assets, a $38.5 million decrease in accounts and notes receivable, partially offset by a $17.4 million decrease in net income.
Sources and Uses of Liquidity from Investing Activities — Six Months Ended June 30, 2025 Compared to 2024
For the Current Year, net cash used in investing activities decreased by $297.7 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash used in investing activities decreased by $281.4 million, primarily due to a $346.4 million decrease in acquisition activity and an $83.4 million decrease in escrow payments for acquisitions, partially offset by a $117.9 million decrease in proceeds from the disposition of franchises and property and equipment.
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Capital Expenditures
Our capital expenditures include costs to extend the useful lives of current dealership facilities, as well as to start or expand operations. In general, expenditures relating to the construction or expansion of dealership facilities are driven by dealership acquisition activity, new franchises being granted to us by a manufacturer, significant growth in sales at an existing facility, relocation opportunities or manufacturer imaging programs. We critically evaluate all planned future capital spending, working closely with our manufacturer partners to maximize the return on our investments.
For the Current Year, $123.9 million was used to purchase property and equipment.
Sources and Uses of Liquidity from Financing Activities — Six Months Ended June 30, 2025 Compared to 2024
For the Current Year, net cash used in financing activities increased by $573.5 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by financing activities decreased by $325.3 million. The decrease in net cash provided by financing activities on an adjusted basis was primarily driven by decreases in net borrowings of real estate-related and other debt of $386.4 million, decreases in net borrowings on our U.S. Floorplan line of $213.8 million (representing the net cash activity in our floorplan offset account), and a $67.5 million increase in repurchases of common stock. These decreases were partially offset by a $346.1 million increase in net borrowings on the Acquisition Line.
Credit Facilities, Debt Instruments and Other Financing Arrangements
Our various credit facilities, debt instruments and other financing arrangements are used to finance the purchase of inventory and real estate, provide acquisition funding and provide working capital for general corporate purposes.
The following table summarizes the commitment of our credit facilities as of June 30, 2025 (in millions):
| Total Commitment | Outstanding | Available | ||||||||||||||||||
U.S. Floorplan Line (1) | $ | 1,750.0 | $ | 967.0 | $ | 783.0 | ||||||||||||||
Acquisition Line (2) | 1,750.0 | 421.8 | 738.6 | |||||||||||||||||
| Total revolving credit facility | 3,500.0 | 1,388.8 | 1,521.6 | |||||||||||||||||
FMCC Facility (3) | 200.0 | 153.2 | 46.8 | |||||||||||||||||
GM Financial Facility (4) | 348.1 | 173.6 | 174.5 | |||||||||||||||||
Total U.S. credit facilities (5) | $ | 4,048.1 | $ | 1,715.7 | $ | 1,742.8 | ||||||||||||||
(1) The available balance at June 30, 2025, includes $321.0 million of immediately available funds. The remaining available balance can be used for vehicle inventory financing.
(2) The outstanding balance of $421.8 million is related to outstanding letters of credit of $11.8 million and $410.0 million in USD borrowings. The available borrowings may be limited from time to time, based on certain debt covenant calculations, and as a result, the outstanding balance plus available borrowings may not equal the total commitment.
(3) The available balance at June 30, 2025, includes no immediately available funds. The remaining available balance can be used for Ford new vehicle inventory financing.
(4) The available balance at June 30, 2025, includes no immediately available funds. The remaining available balance can be used for General Motors new and loaner vehicle inventory financing.
(5) The outstanding balance excludes $651.1 million of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and loaner vehicle financing not associated with any of our U.S. credit facilities.
We have other credit facilities in the U.S. and the U.K. with third-party financial institutions, most of which are affiliated with the automobile manufacturers that provide financing for portions of our new, used and rental vehicle inventories. In addition, we have outstanding debt instruments, including our 4.00% and 6.375% Senior Notes, as well as real estate related and other debt instruments. Refer to Note 9. Debt within our Notes to Condensed Consolidated Financial Statements for further information.
Covenants
Our Revolving Credit Facility, indentures governing our 4.00% and 6.375% Senior Notes and certain mortgage term loans contain customary financial and operating covenants that place restrictions on us, including our ability to incur additional indebtedness, create liens or to sell or otherwise dispose of assets and to merge or consolidate with other entities. Certain of our mortgage agreements contain cross-default provisions that, in the event of a default of certain mortgage agreements and of our Revolving Credit Facility, could trigger an uncured default.
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As of June 30, 2025, we were in compliance with the requirements of the financial covenants under our debt agreements. We are required to maintain the ratios detailed in the following table:
| As of June 30, 2025 | |||||||||||
| Required | Actual | ||||||||||
| Total adjusted leverage ratio | < 5.75 | 2.72 | |||||||||
| Fixed charge coverage ratio | > 1.20 | 3.52 | |||||||||
Based on our position as of June 30, 2025, and our outlook as discussed within Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, we believe we have sufficient liquidity and do not anticipate any material liquidity constraints or issues with our ability to remain in compliance with our debt covenants.
Refer to Note 9. Debt and Note 10. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for further discussion of our debt instruments, credit facilities and other financing arrangements existing as of June 30, 2025.
Share Repurchases and Dividends
From time to time, our Board of Directors authorizes the repurchase of shares of our common stock up to a certain monetary limit. On November 12, 2024, our Board of Directors increased the share repurchase authorization to $500.0 million. During the Current Year, 401,649 shares were repurchased, at an average price of $416.62 per share, for a total of $167.3 million, excluding excise taxes of $1.1 million. As of June 30, 2025, we had $308.8 million available under our current share repurchase authorization.
During the Current Year, our Board of Directors approved an increase in the 2025 annual dividend rate to $2.00 per share, which represents an increase of 6%, or $0.12, as compared to the 2024 annual dividend rate of $1.88 per share. Consistent with this increase, a quarterly cash dividend of $0.50 per share on all shares of our common stock was approved during the Current Quarter, which resulted in $6.4 million paid to common shareholders and $0.1 million to unvested restricted stock award holders.
Future share repurchases and the payment of any future dividends are subject to the business judgment of our Board of Directors, taking into consideration our historical and projected results of operations, financial condition, cash flows, capital requirements, covenant compliance, changes in laws and regulations, current economic environment and other factors considered relevant.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
For quantitative and qualitative disclosures about market risk affecting us, refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our 2024 Form 10-K. Our exposure to market risk has not changed materially since December 31, 2024.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2025, at the reasonable assurance level.
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Our management, including our principal executive officer and our principal financial officer, does not expect that our disclosure controls and procedures can prevent all possible errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the intentional acts of one or more persons. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events and while our disclosure controls and procedures are designed to be effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to possible errors or fraud may occur and not be detected.
Changes in Internal Control over Financial Reporting
During the three months ended June 30, 2025, there were no changes in our system of internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We are not party to any legal proceedings, including class action lawsuits that, individually or in the aggregate, are reasonably expected to have a material adverse effect on our results of operations, financial condition or cash flows. Refer to Note 12. Commitments and Contingencies within our Notes to Condensed Consolidated Financial Statements for a discussion of our legal proceedings.
Item 1A. Risk Factors
Except as set forth below, during the Current Quarter, there were no changes to the Risk Factors disclosed in Item 1A. Risk Factors of our 2024 Form 10-K.
Existing and potential new trade policies, such as tariffs, could adversely affect our operations, costs and business.
President Donald Trump has issued a series of executive orders since taking office in January 2025, including executive orders regarding tariffs. Refer to Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Recent Events, for additional information regarding these executive orders, including those related to tariffs.
On April 2, 2025, President Donald Trump signed an executive order setting a 10 percent baseline tariff on imports, with higher rates for countries running trade surpluses with the U.S. By April 9, 2025, a follow-up order paused most of the higher reciprocal tariffs for 90 days but kept the 10 percent baseline and raised Chinese tariffs. On July 7, 2025, President Donald Trump extended the tariff modifications through August 1, 2025. Public statements from members of the Trump Administration and President Donald Trump, himself, have indicated that negotiations are continuing with various foreign nations, although an extension of the tariff modification deadline beyond the August 1, 2025 deadline cannot predicted with certainty at this time.
On March 26, 2025, President Donald Trump signed a proclamation under Section 232 of the Trade Expansion Act imposing a 25 percent tariff on imported automobiles and certain automobile parts. As of July 24, 2025, the procedures required by the Secretary of Commerce to impose these tariffs have not yet been finalized or implemented.
While the possibility exists for delays, reductions or exemptions of the automotive and reciprocal tariffs, the potential impacts of the tariffs described above remain uncertain and may cause a significant impact on the price of our products as well as the future mix of and demand for vehicles provided by our manufacturers, as well as alter the mix of supply and demand for used vehicles. To the extent any such tariffs remain in place for a sustained period of time, or in the event a global or domestic recession results therefrom, the disposable income of our customers could be significantly reduced, which may result in our customers deciding to delay new or used vehicle purchases or vehicle maintenance and repairs, or forego them entirely, each of which could adversely affect our results of operations and financial condition. Additionally, reciprocal tariffs, tariffs on steel, aluminum, copper and other materials, and the elevated tariffs against China could negatively impact business or consumer sentiment, demand for our products, our manufacturers’ global supply chains, and the United States or global economy generally. Manufacturers’ supply chain dependencies and production facility locations vary (and planned facility locations may, in response to threatened tariffs and trade barriers, be changed), and as a result, certain manufacturers could be impacted more significantly by the imposition of tariffs than others.
Additional actions taken by the U.S. that restrict or could impact the economics of trade — including additional tariffs, trade barriers, and other similar measures — could have the potential to further disrupt existing supply chains and trigger retaliatory efforts by other countries, including the imposition of tariffs, raising taxation, setting foreign exchange or capital controls, or establishing embargoes, sanctions, or other import/export restrictions, thereby negatively impacting our business, both directly and indirectly. These developments, or the perception that more of them could occur, may materially create or increase business uncertainty and could adversely affect the global economy and stability of global financial markets, potentially reducing trade and depressing economic activity, including demand for our products. Such changes in international trade policies may result in direct impacts to our business or indirectly to our customers or suppliers through increased costs, changes in business prospects or operating results, which could adversely affect our financial condition. The extent of such impacts cannot be predicted at this time.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Recent Sales of Unregistered Securities
None.
Use of Proceeds
None.
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Issuer Purchases of Equity Securities
The following table sets forth information with respect to shares of common stock repurchased by us during the Current Quarter:
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1) | ||||||||||||||||||||||
April 1, 2025 — April 30, 2025 | 114,918 | $ | 387.39 | 114,918 | $ | 308.8 | ||||||||||||||||||||
| May 1, 2025 — May 31, 2025 | — | $ | — | — | $ | 308.8 | ||||||||||||||||||||
June 1, 2025 — June 30, 2025 | — | $ | — | — | $ | 308.8 | ||||||||||||||||||||
| Total | 114,918 | 114,918 | ||||||||||||||||||||||||
(1) Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit. On November 12, 2024, our Board of Directors increased the share repurchase authorization to $500.0 million. Share repurchases may take place on the open market or otherwise, and all or part of the repurchases may be made pursuant to Rule 10b5-1 trading plans or in privately negotiated transactions. The timing of share repurchases are subject to the business judgment of our Board of Directors, taking into consideration our historical and projected results of operations, financial condition, cash flows, capital requirements, covenant compliance, changes in laws and regulations, current economic environment and other factors considered relevant.
As of June 30, 2025, we had $308.8 million available under our current share repurchase authorization. Our share repurchase authorization does not have an expiration date. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information on share repurchases and authorization.
Item 5. Other Information
Trading Plans
During the Current Quarter, no director or officer of the Company adopted terminated
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Item 6. Exhibits
The exhibits required to be filed or furnished by Item 601 of Regulation S-K are listed below.
EXHIBIT INDEX
Exhibit Number | Description | |||||||||||||
3.1 | — | Fourth Amended and Restated Certificate of Incorporation of Group 1 Automotive, Inc. effective May 13, 2025 (incorporated by reference to Exhibit 3.1 of Group 1 Automotive Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 14, 2025) | ||||||||||||
3.2 | — | Fifth Amended and Restated Bylaws of Group 1 Automotive, Inc. effective May 13, 2025 (incorporated by reference to Exhibit 3.1 of Group 1 Automotive Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 16, 2025) | ||||||||||||
4.1* | — | Fourth Supplemental Indenture and Subsidiary Guarantee to Indenture dated as of August 17, 2020, dated July 11, 2025, by and among Group 1 Automotive, Inc., the guarantors party thereto and Computershare Trust Company, N.A., as trustee | ||||||||||||
4.2* | — | Second Supplemental Indenture and Subsidiary Guarantee to Indenture dated as of July 30, 2024, dated July 11, 2025, by and among Group 1 Automotive, Inc., the guarantors party thereto and Computershare Trust Company, N.A., as trustee | ||||||||||||
10.1+ | — | Thirteenth Amended and Restated Revolving Credit Agreement, effective May 30, 2025 (incorporated by reference to Exhibit 10.1 of Group 1 Automotive Inc.’s Current Report on Form 8-K (File No. 001-13461) filed June 3, 2025) | ||||||||||||
10.2* | — | Second Addendum to Master Loan Agreement dated effective May 19, 2025 | ||||||||||||
31.1* | — | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||
31.2* | — | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||
32.1* | — | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||||
32.2* | — | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||||
| 101.INS* | — | XBRL Instance Document | ||||||||||||
| 101.SCH* | — | XBRL Taxonomy Extension Schema Document | ||||||||||||
| 101.CAL* | — | XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||
| 101.DEF* | — | XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||
| 101.LAB* | — | XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||
| 101.PRE* | — | XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||
| 104* | — | Cover Page Interactive Data File (formatted in Inline XBRL and contained in exhibit 101) | ||||||||||||
| * | Filed or furnished herewith | |||||||
| + | Exhibit omits certain immaterial schedules and exhibits pursuant to the provisions of Item 601(a)(5) of Regulation S-K and will be furnished to the Securities and Exchange Commission upon request. | |||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Group 1 Automotive, Inc. | |||||||||||
| Date: | July 24, 2025 | By: | /s/ Daniel J. McHenry | ||||||||
| Daniel J. McHenry | |||||||||||
| Senior Vice President and Chief Financial Officer | |||||||||||
50
FAQ
How many Jaguar Health (JAGX) shares are being registered on this Form S-3?
Up to 1,409,732 common shares: 481,150 from convertible notes and 928,582 from warrants.
Will Jaguar Health receive proceeds from this resale registration?
Jaguar receives no proceeds from stockholder sales; it only gains cash if warrants are exercised for $2.70 per share.
What is the potential dilution impact of the newly registered shares?
If all securities convert/exercise, the share count could rise by about 74 % versus the 1.914 M shares outstanding on 21 Jul 2025.
When do the 6 % Replacement Notes mature and at what conversion price?
Notes mature 30 Jan 2026 and convert at $5.535 (non-insiders) or $5.555 (insiders) per share.
What are the warrant terms?
Warrants are exercisable immediately at $2.70 and expire 18 months after issuance or upon a fundamental or liquidation event.
How will any warrant-exercise proceeds be used?
Management plans to apply net cash proceeds, if any, to working capital and general corporate purposes.
What is Jaguar Health’s current Nasdaq ticker and recent share price?
Ticker is JAGX; the last reported price on 23 Jul 2025 was $2.38 per share.
Group 1 Automotive Inc
NYSE:GPI
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Jul 15, 2025
[SCHEDULE 13G/A] Group 1 Automotive, Inc. SEC Filing
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5.40B
12.43M
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9.08%
Auto & Truck Dealerships
Retail-auto Dealers & Gasoline Stations
United States
HOUSTON