Operating margins have contracted from 5.4% in 2024Q1 to 4.6% in 2026Q1, reflecting an inability to scale fixed costs against a rapidly decelerating revenue base.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 22.47B | 22.57B | 19.93B | 17.87B | 16.22B | 13.48B | 10.6B | 11.6B | 11.6B | 11.12B | 10.89B | 10.63B | 9.94B | 8.92B | 7.48B | 6.08B | 5.51B | 4.39B | 5.47B | 6.39B | 6.08B | 5.97B | 5.44B | 4.52B | 4.21B | 4B | 3.59B | 2.51B | 1.63B | 404M |
| Revenue Growth % | 7.17% | 13.23% | 11.53% | 10.18% | 20.32% | 27.19% | -8.6% | -0.03% | 4.3% | 2.17% | 2.4% | 6.99% | 11.43% | 19.29% | 22.97% | 10.36% | 25.51% | -19.72% | -14.48% | 5.09% | 1.91% | 9.84% | 20.28% | 7.22% | 5.45% | 11.44% | 42.97% | 53.87% | 303.49% | - |
| Cost of Goods Sold | 18.99B | 19.07B | 16.69B | 14.85B | 13.26B | 11.04B | 8.87B | 9.84B | 9.88B | 9.48B | 9.29B | 9.1B | 8.49B | 7.63B | 6.36B | 5.12B | 4.63B | 3.75B | 4.74B | 5.4B | 5.12B | 5.04B | 4.6B | 3.8B | 3.56B | 3.39B | 3.06B | 2.13B | 1.39B | 349.4M |
| COGS % of Revenue | - | 84.49% | 83.74% | 83.1% | 81.72% | 81.9% | 83.64% | 84.8% | 85.13% | 85.21% | 85.35% | 85.57% | 85.43% | 85.51% | 85.06% | 84.2% | 84.08% | 85.43% | 86.66% | 84.41% | 84.14% | 84.38% | 84.7% | 83.99% | 84.52% | 84.8% | 85.29% | 85% | 85.49% | 86.49% |
| Gross Profit | 3.48B | 3.5B | 3.24B | 3.02B | 2.97B | 2.44B | 1.73B | 1.76B | 1.73B | 1.65B | 1.6B | 1.53B | 1.45B | 1.29B | 1.12B | 960.6M | 877.03M | 639.41M | 729.11M | 996.38M | 964.8M | 932.41M | 831.77M | 723.41M | 652.29M | 607.25M | 527.44M | 376.3M | 236.6M | 54.6M |
| Gross Margin % | 15.51% | 15.51% | 16.26% | 16.9% | 18.28% | 18.1% | 16.36% | 15.2% | 14.87% | 14.79% | 14.65% | 14.43% | 14.57% | 14.49% | 14.94% | 15.8% | 15.92% | 14.57% | 13.34% | 15.59% | 15.86% | 15.62% | 15.3% | 16.01% | 15.48% | 15.2% | 14.71% | 15% | 14.51% | 13.51% |
| Gross Profit Growth % | - | 8.02% | 7.31% | 1.86% | 21.49% | 40.75% | -1.61% | 2.16% | 4.84% | 3.16% | 3.98% | 5.94% | 12.02% | 15.69% | 16.31% | 9.53% | 37.16% | -12.3% | -26.82% | 3.27% | 3.47% | 12.1% | 14.98% | 10.9% | 7.42% | 15.13% | 40.16% | 59.04% | 333.33% | - |
| Operating Expenses | 2.53B | 2.55B | 2.33B | 2.05B | 1.87B | 1.56B | 1.24B | 1.4B | 1.38B | 1.3B | 1.25B | 1.26B | 1.15B | 1.02B | 887.26M | 767.1M | 730.93M | 531.33M | 741.55M | 815.74M | 760.14M | 760.4M | 688.05M | 573.59M | 514.67M | 475.9M | 409.72M | 290.4M | 184.4M | 44.4M |
| OpEx % of Revenue | - | 11.31% | 11.7% | 11.48% | 11.55% | 11.54% | 11.68% | 12.11% | 11.93% | 11.72% | 11.53% | 11.81% | 11.53% | 11.43% | 11.87% | 12.62% | 13.27% | 12.11% | 13.56% | 12.76% | 12.5% | 12.74% | 12.66% | 12.69% | 12.21% | 11.91% | 11.43% | 11.58% | 11.31% | 10.99% |
| Selling, General & Admin | 2.53B | 2.55B | 2.18B | 1.93B | 1.78B | 1.48B | 1.14B | 1.31B | 1.27B | 1.23B | 1.17B | 1.12B | 1.06B | 976.86M | 848.45M | 735.23M | 693.63M | 621.05M | 739.43M | 778.06M | 739.76M | 741.47M | 672.21M | 561.08M | 502.73M | 458.55M | 393.68M | 279.8M | 178M | 43.4M |
| SG&A % of Revenue | - | 11.31% | 10.93% | 10.78% | 10.99% | 10.96% | 10.74% | 11.32% | 10.97% | 11.02% | 10.75% | 10.54% | 10.69% | 10.95% | 11.35% | 12.09% | 12.59% | 14.15% | 13.52% | 12.17% | 12.16% | 12.42% | 12.37% | 12.42% | 11.93% | 11.47% | 10.98% | 11.15% | 10.92% | 10.74% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 152.8M | 124.9M | 90.5M | 79.1M | 100.2M | 91.7M | 111M | 77.4M | 84.07M | 134.8M | 83.86M | 42.37M | 38.81M | 31.87M | 37.3M | -89.71M | 2.12M | 37.68M | 20.38M | 18.93M | 15.84M | 12.51M | 11.94M | 17.36M | 16.04M | 10.6M | 6.4M | 1M |
| Operating Income | 956.8M | 948.7M | 909.1M | 968.6M | 1.09B | 884.4M | 495.7M | 358.3M | 341.1M | 341.9M | 340.23M | 278.34M | 302.11M | 273.32M | 230M | 193.5M | 146.1M | 108.07M | -12.44M | 180.64M | 204.66M | 172.01M | 143.72M | 149.82M | 137.62M | 131.35M | 117.72M | 85.9M | 52.2M | 10.2M |
| Operating Margin % | 4.26% | 4.2% | 4.56% | 5.42% | 6.73% | 6.56% | 4.68% | 3.09% | 2.94% | 3.07% | 3.13% | 2.62% | 3.04% | 3.06% | 3.08% | 3.18% | 2.65% | 2.46% | -0.23% | 2.83% | 3.36% | 2.88% | 2.64% | 3.32% | 3.27% | 3.29% | 3.28% | 3.42% | 3.2% | 2.52% |
| Operating Income Growth % | - | 4.36% | -6.14% | -11.25% | 23.41% | 78.41% | 38.35% | 5.04% | -0.23% | 0.49% | 22.24% | -7.87% | 10.53% | 18.84% | 18.86% | 32.44% | 35.19% | 968.48% | -106.89% | -11.74% | 18.98% | 19.68% | -4.07% | 8.86% | 4.78% | 11.58% | 37.04% | 64.56% | 411.76% | - |
| EBITDA | 1.08B | 1.07B | 1.02B | 1.06B | 1.18B | 963.3M | 571.5M | 429.9M | 408.2M | 399.8M | 391.47M | 325.58M | 344.45M | 309.15M | 261.53M | 220.57M | 172.56M | 133.9M | 13.21M | 203.81M | 224.4M | 194.46M | 161.39M | 164.2M | 149.23M | 148.71M | 133.76M | 96.5M | 58.6M | 11.2M |
| EBITDA Margin % | 4.8% | 4.74% | 5.13% | 5.93% | 7.28% | 7.15% | 5.39% | 3.71% | 3.52% | 3.59% | 3.6% | 3.06% | 3.47% | 3.47% | 3.5% | 3.63% | 3.13% | 3.05% | 0.24% | 3.19% | 3.69% | 3.26% | 2.97% | 3.63% | 3.54% | 3.72% | 3.73% | 3.85% | 3.59% | 2.77% |
| EBITDA Growth % | 4.93% | 4.66% | -3.62% | -10.17% | 22.57% | 68.56% | 32.94% | 5.32% | 2.1% | 2.13% | 20.24% | -5.48% | 11.42% | 18.21% | 18.57% | 27.82% | 28.87% | 913.79% | -93.52% | -9.17% | 15.39% | 20.49% | -1.71% | 10.03% | 0.35% | 11.18% | 38.61% | 64.68% | 423.21% | - |
| D&A (Non-Cash Add-back) | 122.9M | 121.1M | 113.1M | 92M | 89.3M | 78.9M | 75.8M | 71.6M | 67.1M | 57.9M | 51.23M | 47.24M | 42.34M | 35.83M | 31.53M | 27.06M | 26.45M | 25.83M | 25.65M | 23.18M | 19.74M | 22.45M | 17.67M | 14.38M | 11.61M | 17.36M | 16.04M | 10.6M | 6.4M | 1M |
| EBIT | 956.8M | 948.7M | 908.3M | 964.1M | 1.09B | 884.3M | 481.9M | 358.4M | 341.1M | 341.9M | 340.23M | 278.34M | 255.71M | 272.53M | 230M | 193.5M | 142.23M | 116.27M | 5.98M | 180.64M | 204.66M | 172.01M | 143.72M | 149.82M | 137.62M | 131.35M | 117.72M | 85.9M | 52.2M | 10.2M |
| Net Interest Income | -303.3M | -310.9M | -249.8M | -163.9M | -104.8M | -83.4M | -101.1M | -135.7M | -135.7M | -122.9M | -112.86M | -96.17M | -91.31M | -80.64M | -69.26M | -61.41M | -61.33M | 75.01M | 103.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 136.43M | 186.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 303.3M | 310.9M | 249.8M | 163.9M | 104.8M | 83.4M | 101.1M | 135.7M | 135.7M | 122.9M | 112.86M | 96.17M | 91.31M | 80.64M | 69.26M | 61.41M | 61.33M | 61.42M | 75.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -503.9M | -498.8M | -250.6M | -168.4M | -106.1M | -83.5M | -114.9M | -135.6M | -135.7M | -122.9M | -112.86M | -96.17M | -137.71M | -81.43M | -69.26M | -61.41M | -65.2M | -53.22M | -64.73M | -74.61M | -65.31M | -63.6M | -95.77M | -36.75M | -30.34M | -41.93M | -51.89M | -30.2M | -17M | -3.8M |
| Pretax Income | 452.9M | 449.9M | 658.5M | 800.2M | 985.3M | 800.9M | 380.8M | 222.7M | 205.4M | 219M | 227.37M | 182.17M | 164.4M | 191.9M | 160.74M | 132.09M | 80.9M | 54.85M | -77.18M | 106.02M | 139.35M | 108.41M | 47.95M | 113.07M | 107.28M | 89.42M | 65.83M | 55.7M | 35.2M | 6.4M |
| Pretax Margin % | 2.02% | 1.99% | 3.3% | 4.48% | 6.07% | 5.94% | 3.59% | 1.92% | 1.77% | 1.97% | 2.09% | 1.71% | 1.65% | 2.15% | 2.15% | 2.17% | 1.47% | 1.25% | -1.41% | 1.66% | 2.29% | 1.82% | 0.88% | 2.5% | 2.55% | 2.24% | 1.84% | 2.22% | 2.16% | 1.58% |
| Income Tax | 126.9M | 126.2M | 161.5M | 198.2M | 231.1M | 175.5M | 84.2M | 53.7M | 47.6M | 5.6M | 80.31M | 88.17M | 71.4M | 77.9M | 60.53M | 49.7M | 30.6M | 20.01M | -31.17M | 38.07M | 50.96M | 38.14M | 20.17M | 36.95M | 40.22M | 33.98M | 25.01M | 22.2M | 14.5M | 600K |
| Effective Tax Rate % | 28.02% | 28.05% | 24.53% | 24.77% | 23.45% | 21.91% | 22.11% | 24.11% | 23.17% | 2.56% | 35.32% | 48.4% | 43.43% | 40.6% | 37.66% | 37.62% | 37.82% | 36.47% | 40.38% | 35.91% | 36.57% | 35.18% | 42.06% | 32.67% | 37.49% | 38% | 38% | 39.86% | 41.19% | 9.38% |
| Net Income | 326.1M | 323.7M | 498.2M | 601.6M | 751.5M | 552.1M | 286.5M | 174M | 157.8M | 213.4M | 147.06M | 94M | 93M | 113.99M | 100.21M | 82.39M | 50.3M | 34.84M | -48.01M | 67.95M | 88.39M | 54.23M | 27.78M | 76.13M | 67.06M | 55.44M | 40.81M | 33.5M | 20.7M | 5.8M |
| Net Margin % | 1.45% | 1.43% | 2.5% | 3.37% | 4.63% | 4.1% | 2.7% | 1.5% | 1.36% | 1.92% | 1.35% | 0.88% | 0.94% | 1.28% | 1.34% | 1.36% | 0.91% | 0.79% | -0.88% | 1.06% | 1.45% | 0.91% | 0.51% | 1.68% | 1.59% | 1.39% | 1.14% | 1.34% | 1.27% | 1.44% |
| Net Income Growth % | -31.78% | -35.03% | -17.19% | -19.95% | 36.12% | 92.71% | 64.66% | 10.27% | -26.05% | 45.11% | 56.45% | 1.07% | -18.41% | 13.75% | 21.62% | 63.79% | 44.37% | 172.57% | -170.66% | -23.12% | 62.99% | 95.21% | -63.51% | 13.51% | 20.96% | 35.85% | 21.83% | 61.84% | 256.9% | - |
| Net Income (Continuing) | 326M | 323.7M | 497M | 602M | 754.2M | 625.4M | 296.7M | 169M | 157.8M | 213.4M | 147.06M | 94M | 93M | 113.99M | 100.21M | 82.39M | 50.3M | 34.84M | -46.01M | 67.95M | 88.39M | 70.27M | 27.78M | 76.13M | 67.06M | 55.44M | 40.81M | 33.5M | 20.7M | 5.8M |
| Discontinued Operations | 300K | 0 | 1.2M | -400K | -2.7M | -73.3M | -10.2M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 27.18 | 25.12 | 36.73 | 42.73 | 47.14 | 30.11 | 15.51 | 9.34 | 7.83 | 9.85 | 6.67 | 3.86 | 3.60 | 4.32 | 4.19 | 3.47 | 2.11 | 1.42 | -1.39 | 2.90 | 3.62 | 2.24 | 1.18 | 3.26 | 2.80 | 2.59 | 1.88 | 1.55 | 1.16 | 0.76 |
| EPS Growth % | -26.49% | -31.61% | -14.04% | -9.36% | 56.56% | 94.13% | 66.06% | 19.28% | -20.51% | 47.68% | 72.8% | 7.22% | -16.67% | 3.1% | 20.75% | 64.45% | 48.59% | 202.16% | -147.93% | -19.89% | 61.61% | 89.83% | -63.8% | 16.43% | 8.11% | 37.77% | 21.29% | 33.62% | 52.63% | - |
| EPS (Basic) | - | 25.17 | 36.73 | 42.90 | 47.30 | 30.22 | 15.56 | 9.35 | 8.11 | 9.85 | 6.67 | 3.86 | 3.68 | 4.50 | 4.39 | 3.63 | 2.11 | 1.42 | -1.40 | 2.92 | 3.66 | 2.27 | 1.22 | 3.38 | 2.93 | 2.75 | 1.91 | 1.62 | 1.20 | 0.78 |
| Diluted Shares Outstanding | 12M | 12.74M | 13.28M | 13.73M | 15.49M | 17.72M | 17.81M | 17.94M | 19.46M | 20.9M | 21.17M | 24.08M | 24.89M | 25.31M | 22.69M | 22.41M | 23.32M | 23.32M | 22.67M | 23.41M | 24.45M | 24.23M | 23.49M | 23.35M | 23.97M | 21.41M | 21.71M | 21.56M | 17.9M | 14.68M |
| Basic Shares Outstanding | 12M | 12.71M | 13.28M | 13.68M | 15.4M | 17.7M | 17.81M | 18.63M | 18.32M | 20.42M | 21.16M | 23.41M | 24.34M | 24.31M | 21.62M | 22.16M | 23.79M | 22.89M | 22.51M | 23.27M | 24.15M | 23.87M | 22.81M | 22.52M | 22.88M | 20.14M | 21.38M | 20.68M | 17.28M | 14.68M |
| Dividend Payout Ratio | - | 7.91% | 5.06% | 4.19% | 3.15% | 4.33% | 3.84% | 11.67% | 13.23% | 9.59% | 13.59% | 21.22% | 18.38% | 13.87% | 13.41% | 13.61% | 4.76% | 31.44% | - | 19.55% | 15.2% | - | - | - | - | - | - | - | - | 206.9% |
Interest Rate Sensitivity
According to the provided quarterly income statements, GPI's revenue growth has decelerated from a peak of 23.8% in 2024Q4 to a contraction of 1.8% by 2026Q1, signaling a significant cooling in demand across the company's primary automotive retail and service segments in recent periods.
The sharp reversal from double-digit growth to negative territory suggests that the post-pandemic tailwinds supporting vehicle pricing and volume have largely dissipated. Investors should monitor whether this trend reflects a broader cyclical downturn in consumer discretionary spending or specific inventory management challenges within the company's 35-brand portfolio.
As reported in financial statements, GPI's gross margin has trended downward from 16.6% in 2024Q1 to 15.7% in 2026Q1, reflecting the ongoing difficulty in maintaining pricing power amidst a shifting competitive landscape and fluctuating vehicle inventory costs across the company's diverse geographic footprint.
The erosion of gross margins indicates that the company is struggling to pass through rising costs to consumers, potentially due to increased competition or a shift in the sales mix toward lower-margin vehicle segments. This compression warrants further investigation into whether the high-margin parts and service business can continue to offset the volatility inherent in new and used vehicle sales.
Based on the income statement data, operating margins have contracted from 5.4% in 2024Q1 to 4.6% in 2026Q1, suggesting that the company's fixed cost base, including facility leases and specialized labor, is not scaling efficiently in response to the recent deceleration in top-line revenue growth.
The inability to maintain operating margins during periods of revenue volatility highlights the high fixed-cost nature of the dealership model. This lack of operating leverage implies that any further decline in sales volume could disproportionately impact bottom-line profitability, leaving little room for operational error.
Data from recent filings reveals significant fluctuations in net income, which dropped from $147.9 million in 2024Q1 to $43.0 million in 2025Q4, indicating that reported earnings are highly sensitive to non-operating items and the cyclical nature of the automotive retail business model.
The wide variance in net income suggests that investors should look beyond headline EPS to understand the underlying cash-generating capability of the business. The inconsistent nature of these earnings, coupled with periodic stock-based compensation, may indicate that the company's bottom line is susceptible to accounting distortions and one-time divestiture impacts.
While management emphasizes the resilience of the parts and service segment, the recent decline in net margins to 2.4% in 2026Q1 suggests that the core business may be more vulnerable to cyclical economic pressures than the current market narrative of quasi-recurring service revenue implies.
Short-sellers may focus on the company's high sensitivity to interest rates and the potential for margin compression if the shift toward electric vehicles reduces the frequency of traditional maintenance. The reliance on credit-heavy floorplan financing makes the company particularly exposed to prolonged periods of elevated interest rates, which could further erode profitability.
Quick answers to the most common questions about buying GPI stock.
For fiscal year 2025, Group 1 Automotive, Inc. (GPI) reported total revenue of $22.57B. This represents a 5487.0% increase compared to $404.0M in 1997.
Group 1 Automotive, Inc. (GPI) is profitable, generating $323.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
Group 1 Automotive, Inc. (GPI) reported an operating income of $948.7M, resulting in an operating profit margin of 4.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Group 1 Automotive, Inc. (GPI) generated $3.50B in gross profit for the year, representing a gross profit margin of 15.5%. This demonstrates the company's core pricing power and production efficiency.