Group 1 Automotive, Inc. (NYSE:GPI) reported third-quarter 2026 financial results on October 28, 2026, disclosing diluted earnings per share from continuing operations of $8.59, total revenues of $5.4 billion, and the completed acquisition of Hennessy Automobile Companies.

Key Highlights

  • Diluted EPS from continuing operations: $8.59 for Q3 2026, compared to $1.02 for the prior-year quarter.
  • Adjusted diluted EPS (non-GAAP): $9.36 for Q3 2026, compared to $10.45 for the prior-year quarter.
  • Total revenues: $5.4 billion for Q3 2026, compared to $5.8 billion for Q3 2025, a decline of 6.7%.
  • Hennessy Acquisition completed: On October 19, 2026, the company closed the purchase of Hennessy Automobile Companies, adding 10 dealerships with total expected annual revenues of approximately $1.7 billion.
  • Disposition proceeds: Approximately $235 million received from U.S. dispositions subsequent to quarter end, with an additional approximately $125 million expected from dealerships under definitive agreement.
  • Share repurchases paused in Q3: No shares were repurchased during the current quarter; year-to-date repurchases totaled 205,190 shares at an average price of $353.08 per share.
  • All-time record: According to the filing, the company achieved all-time record customer pay revenues and repair order count in the U.S. during the quarter.

Group 1 Automotive Third-Quarter 2026 Results: Hennessy Integration and Leverage Reduction in Focus

According to the filing, Group 1 Automotive reported current-quarter net income from continuing operations of $102.9 million, up from $13.1 million in the prior-year quarter. Adjusted net income from continuing operations (a non-GAAP measure) was $112.1 million for Q3 2026, compared to $135.1 million for Q3 2025. Total gross profit was $854.8 million, a decrease of 7.1% year-over-year, while consolidated SG&A expenses as a percentage of gross profit were 72.3%, an increase of 112 basis points.

The filing disclosed that the company completed the Hennessy Acquisition on October 19, 2026, after entering into a Purchase and Sale Agreement on July 30, 2026. The acquisition expands the company's presence in the Atlanta market to 15 dealerships, the filing stated. Year-to-date, the company reported acquiring 14 dealership operations in the U.S. with total expected annual revenues of approximately $2 billion. In the U.K., the company reached an agreement with Jaguar Land Rover to retain and operate five remaining JLR dealerships it had previously elected to terminate, and expanded its network through an agreement with Geely, opening two of three planned locations.

On the disposition front, the filing reported that subsequent to the current quarter, the company completed the sale of a Lexus, Acura, and Honda dealership for proceeds of approximately $235 million, and has executed agreements to dispose of four additional dealerships for expected proceeds of approximately $125 million. The company described the disposition plan as part of its strategy to reduce leverage. As of September 30, 2026, the company reported 11,947,272 shares of common stock and unvested restricted stock awards outstanding, and $306.3 million remaining under its Board authorized share repurchase program. U.S. same-store customer pay revenue grew 3.2% year-over-year, and same-store repair orders grew, the filing indicated.

What Was Disclosed

Group 1 Automotive filed its Q3 2026 earnings press release on October 28, 2026, reporting revenues of $5.4 billion, diluted EPS from continuing operations of $8.59, the completion of the Hennessy Acquisition, and progress on a dealership disposition strategy targeting leverage reduction.