Group 1 Automotive Inc. (NYSE:GPI) reported second-quarter 2026 results that fell below Wall Street expectations as weaker consumer affordability weighed on vehicle sales and profitability.
The earnings report sent the automotive retailer’s shares down 1.84% in premarket trading on Thursday.
Earnings and Revenue Come in Below Forecasts
Group 1 Automotive posted adjusted earnings from continuing operations of $9.61 per diluted share for the quarter, missing the analyst consensus estimate of $11.01 by $1.40.
Revenue totalled $5.4 billion, falling short of analysts’ expectations of $5.68 billion and declining 5.6% from $5.7 billion in the second quarter of 2025.
Compared with the prior-year period, adjusted diluted earnings per share decreased from $11.52, while total gross profit fell 8.0% to $860.6 million.
Vehicle Sales Decline Across New and Used Markets
The company attributed the weaker quarterly performance to affordability pressures that continued to affect consumer demand.
“While our second quarter results softened due to consumer affordability issues, we continued to execute against the strategic initiatives that will strengthen Group 1 over the long term,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer. “During the quarter in the U.S., we successfully completed our previously announced $50 million annualized expense reduction initiative, exceeding our targets.”
New retail vehicle sales declined 4.4% year over year to 53,335 units.
Used retail vehicle sales fell 11.2% to 53,469 units during the quarter.
Meanwhile, parts and service gross profit decreased 3.4% to $389.0 million, while finance and insurance revenue declined 8.8% to $216.8 million.
Acquisition Expands Presence in Atlanta
Separately, Group 1 Automotive announced an agreement to acquire 10 dealerships from Hennessy Automobile Companies in the Atlanta market.
The company expects the acquisition to contribute approximately $1.7 billion in annual revenue once completed.
The transaction is expected to close before the end of 2026, subject to regulatory approvals and manufacturer consent.
Group 1 Automotive stock price
