Latest news with #Group1Automotive
Yahoo
21-05-2025
- Automotive
- Yahoo
Group 1 Automotive Expands by Acquiring Three Luxury Brand Dealerships in Florida and Texas
Group 1 Automotive, Inc. (NYSE:GPI) has revealed plans to purchase three luxury brand shops in Florida and Texas: Mercedes-Benz, Acura, and Lexus. The acquisition is projected to bring in $330 million annually. A line of new and used cars in a large auto dealership's showroom. Group 1 Automotive, Inc. (NYSE:GPI) now has three dealerships in Southwest Florida because of the acquisition of the Lexus and Acura stores in Fort Myers, and it now has eight dealerships in the Austin area because of the purchase of Mercedes-Benz of South Austin. Following the completion of $3.9 billion in revenue acquisitions in 2024, the corporation now forecasts generating $430 million in acquired revenue for 2025. According to CEO Daryl Kenningham, the brands are "exceptional additions" to the firm's portfolio, which currently consists of 263 dealerships in the United States and the United Kingdom. Group 1 Automotive, Inc. (NYSE:GPI) also reported repurchasing 401,649 shares for $167.3 million at an average price of $416.62 per share so far this year, which furthers the company's commitment to capital returns. The purchases support the company's plan to expand its business in "cluster" markets with rapid development. Both Austin and Fort Myers, which are seeing fast economic and demographic growth, offer excellent prospects for high-margin luxury automobile sales. Group 1 Automotive, Inc. (NYSE:GPI)'s dual-track strategy of expansion through M&A and shareholder value through buybacks is supported by this action. The business has 335 franchisees and 39 collision centers in the United States and the United Kingdom, selling 35 automotive brands. It maintains shareholder returns through aggressive repurchase programs while seeking market expansion with high free cash flow. While we acknowledge the potential of GPI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GPI and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: Nike Restructures the Technology Division, Laying Off Some Employees and Alphabet's Waymo has Secured Approval to Expand its Driverless Ride-Hailing Service to San Jose. Disclosure: None. Sign in to access your portfolio
Yahoo
21-05-2025
- Automotive
- Yahoo
Group 1 Automotive Expands by Acquiring Three Luxury Brand Dealerships in Florida and Texas
Group 1 Automotive, Inc. (NYSE:GPI) has revealed plans to purchase three luxury brand shops in Florida and Texas: Mercedes-Benz, Acura, and Lexus. The acquisition is projected to bring in $330 million annually. A line of new and used cars in a large auto dealership's showroom. Group 1 Automotive, Inc. (NYSE:GPI) now has three dealerships in Southwest Florida because of the acquisition of the Lexus and Acura stores in Fort Myers, and it now has eight dealerships in the Austin area because of the purchase of Mercedes-Benz of South Austin. Following the completion of $3.9 billion in revenue acquisitions in 2024, the corporation now forecasts generating $430 million in acquired revenue for 2025. According to CEO Daryl Kenningham, the brands are "exceptional additions" to the firm's portfolio, which currently consists of 263 dealerships in the United States and the United Kingdom. Group 1 Automotive, Inc. (NYSE:GPI) also reported repurchasing 401,649 shares for $167.3 million at an average price of $416.62 per share so far this year, which furthers the company's commitment to capital returns. The purchases support the company's plan to expand its business in "cluster" markets with rapid development. Both Austin and Fort Myers, which are seeing fast economic and demographic growth, offer excellent prospects for high-margin luxury automobile sales. Group 1 Automotive, Inc. (NYSE:GPI)'s dual-track strategy of expansion through M&A and shareholder value through buybacks is supported by this action. The business has 335 franchisees and 39 collision centers in the United States and the United Kingdom, selling 35 automotive brands. It maintains shareholder returns through aggressive repurchase programs while seeking market expansion with high free cash flow. While we acknowledge the potential of GPI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GPI and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: Nike Restructures the Technology Division, Laying Off Some Employees and Alphabet's Waymo has Secured Approval to Expand its Driverless Ride-Hailing Service to San Jose. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
19-05-2025
- Automotive
- The Sun
Major car dealership to close with ‘job losses' expected in just days – months after brand closed three other sites
A MAJOR car dealership group is to close a site despite announcing hefty profits and a recent dividend payment to shareholders. US-based Group 1 Automotive appears to be taking decisive action after announcing the closure of their Volkswagen Telford dealership - only months after shutting down three other sites. 2 2 According to a report by Car Dealer Magazine, a number of job losses are expected at the dealership as a result - which is to close its doors for the final time at the end of this month. However, it is understood that the premises will remain operational as a Volkswagen-authorised repair and service centre. Sources within Group 1 have suggested that the company intends to redeploy many affected staff - presumably to other locations. However, Car Dealer Magazine reported that some employees have already started seeking alternative employment, with a number of them marking themselves as 'Open to Work' on LinkedIn. The firm is reported to be consulting with impacted employees, as they aim to minimise job losses. But with the closure of their sales operations, it is likely that there will be an overall reduction in roles at the site. A spokesperson for Group 1 Automotive UK said: 'Our VW Telford site will continue operating as a standalone VW-authorised repair and service centre, and the retail sales operation will end on 31 May 2025.' This year has been a significant one for Group 1, which announced profits of £162.9m for the first quarter. As a result, investors are in line to receive a dividend of $0.50 (37p) per a share. The company has already closed Volkswagen Wirral, Volkswagen Cheltenham, and Audi Hyde dealerships, which were previously owned by Inchcape. I drove the Aston Martin Vantage Roadster -it's a car which cries out to be driven hard & will get you a nod of appreciation wherever you go These sites were acquired as part of Group 1's £346m deal to purchase Inchcape's showrooms - effectively doubling the company's presence in the UK. Following the acquisition, Group 1 began a review of its corporate support functions, resulting in several redundancies. A spokesperson commented in November: 'Following the completion of the Inchcape Retail acquisition in August, we commenced a review of our corporate support functions. 'This review remains ongoing to ensure we are in a strong position to serve our customers and OEM partners effectively as we move forward as one enlarged business. 'We continue to support all colleagues as we move through this important transition period.'
Business Journals
25-04-2025
- Automotive
- Business Journals
Group 1 Automotive CEO cautious amid Trump tariff uncertainty
The Houston-based automotive retailer has deferred some capital expenditures, but it's still discussing possible acquisitions. Story Highlights Group 1 Automotive reported record Q1 revenue as tariff uncertainty hadn't hit yet. The automotive dealership owner is cautiously approaching M&A and deferring some capital expenditures. Group 1's inventory at the end of March was the lowest in about a year as uncertainty affected some business aspects. President Donald Trump's trade policies will impact a variety of sectors, but the automobile industry may be particularly affected. The Trump administration announced a 25% tariff on all imported automobiles at the end of March, which were set to go into effect on April 3 until the White House later issued a 90-day pause. The back-and-forth nature of the administration's trade policies and lack of clarity has prompted confusion among some auto retailers. For Houston-based Group 1 Automotive Inc. (NYSE: GPI), that means being more prudent in its approach. 'It's an ever-moving target,' Group 1 President and CEO Daryl Kenningham said during the company's first-quarter earnings call on April 24. 'In our view, the best way to capitalize on these changes is to ensure that Group 1 stays nimble and focuses on execution. 'We continue to see demand across all lines of service; however, we are being cautious moving forward.' Given that the tariff announcements didn't come until the end of the first quarter and beginning of the second, they haven't affected Group 1's bottom line for Q1. In fact, the company boasted record Q1 revenue of $5.5 billion, including record quarterly revenue for its U.K. business, with $1.6 billion. However, net income from continuing operations was $127.7 million, down 13.3% from $147.4 million compared to Q1 2024, while adjusted net income increased 3.6% to $134.7 million. Adjusted earnings exclude special items such as restructuring charges and dealership and real estate transactions. Adjusted diluted earnings per common share increased to $10.17, up 7.1% from $9.49 a year earlier. Analysts had expected earnings of $9.67 per share and revenue of $5.44 billion. How Group 1 is approaching M&A, capital expenditures The tariffs may affect Group 1's approach to mergers and acquisitions — a key capital allocation and growth strategy for the company. On the earnings call, Kenningham said the company will continue to be acquisitive, but it will be very measured in its approach. Group 1 will only engage in deals that provide significant long-term value, he said. Kenningham previously told the Houston Business Journal that 2024 was a tougher environment for dealmaking, but he had expected a better M&A market in 2025. 'I haven't seen the uncertainty drive the acquisition environment yet,' Kenningham said on April 24. 'I had some conversations with some folks yesterday, and they feel like it hasn't changed yet.' Since 2023, Group 1 has acquired $5 billion of annual revenue, including the $439 million acquisition of London-based Inchcape Retail last year, and disposed of $1 billion of annual revenue. In the first quarter, the company acquired a business in the U.K. with one Lexus and three Toyota dealerships and disposed of a U.S. Subaru dealership and two U.K. Volkswagen dealerships. Kenningham also noted that the company has deferred some capital expenditures and discretionary spending given the current environment. He clarified that Group 1 hasn't canceled any projects. "We've put them off like six months just to see if the environment is still uncertain or if those are ones that we could do," Kenningham said. "We've reviewed some of our discretionary spending on things that potentially we could rein in, and we did.' How tariffs have affected Group 1 The trade policy had some effect on Group 1's operations toward the end of the first quarter. The company closed March with about 20,000 units of inventory, which Kenningham said is the lowest in about a year. Group 1 ended the quarter with a 29-day supply of new vehicles and 33-day supply of used vehicles — down from 44 days and 39 days at the end of 2024, respectively. Additionally, Group 1 saw some pre-tariff accelerated buying of new vehicles at the end of March, the company wrote in its investor presentation. The auto dealer also expects an increase in demand in used vehicles sales in substitution of new vehicles. Under the current trade agreement between the U.S., Canada and Mexico, cars and car parts produced in Canada and Mexico are not subject to the 25% tariff, according to a fact sheet issued by the White House on March 26. At some point, the Secretary of Commerce will establish a process to apply the tariff only to automobile parts manufactured in Canada and Mexico, the document said. In 2024, 51% of the company's new vehicle sales were from cars produced in the U.S., while another 23% were manufactured in Canada or Mexico, according to Group 1's investor presentation. 'The thing that I'm watching is our inventories,' Kenningham said on the earnings call. 'They were a little tight at the end of March, and some of the (original equipment manufacturers) are being a little cautious about allocations right now, so nobody's taken any drastic steps.' Group 1 Automotive is No. 19 on the HBJ's 2024 Largest Houston-Area Public Companies List, based on its $17.87 billion in revenue in 2023. The company reported record revenue of $19.93 billion in 2024. Sign up here for the Houston Business Journal's free morning and afternoon daily newsletters to receive the latest business news impacting greater Houston.
The Independent
24-04-2025
- Automotive
- The Independent
Inchcape warns that car supply could be impacted by US tariffs
Car distribution firm Inchcape has cautioned that supply from some manufacturers could be impacted by new US tariff plans as it revealed a slump in sales. The London-listed company saw shares slip in early trading on Thursday as a result. Duncan Tait, group chief executive of the company, stressed that demand is 'not currently being impacted by the tariff situation' but said it does expect a potential impact to manufacturers, market competition and broader demand. He added: 'We are taking proactive steps to support our key stakeholders, including taking a conservative approach to managing inventory levels, ensuring we remain disciplined on costs, focusing on cash generation and maintaining our strong balance sheet.' It comes after President Donald Trump announced a 25% tariff on all cars imported to the US, including from the UK. On Thursday, Inchcape reported that group revenues dropped by 5% to £2.1 billion over the three months to March 31, compared with a year earlier. It said this was linked to weaker organic sales amid 'mixed market momentum and tough comparators'. Inchcape reported an improved performance in the Americas, while revenues were weaker in Europe and Africa. Nevertheless, the business – which employs more than 17,000 people globally – maintained its trading guidance for the year and said it expects another year of growth. Mr Tait said: 'We achieved further operational and strategic progress during the first quarter, evidenced by market share gains in key markets and several contract wins, and the progression of our £250 million share buyback programme. 'As the leading global automotive distributor, Inchcape remains well positioned to support our key stakeholders in navigating the current market uncertainty, as our experienced leadership team has done during challenging market environments in previous years.' Last year, Inchcape sold its UK car retail operations to US-based rival Group 1 Automotive for £346 million.
