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Group 1 Automotive 2025 First Quarter 2025 Financial Results Investor Presentation April 24, 2025
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2 Group 1 Automotive 2025 Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the impacts of sustained levels of inflation, (c) developments in U.S. and global trade policy, including theimposition by the U.S. of significant tariffs on the import of automobiles and certain materials used in our parts and services operating segment and the resulting consequences (including, but not limited to, retaliatory tariffs by non-U.S. nations, supply chain disruptions and potential recessions in the U.S. and U.K.), (d) the level of manufacturer incentives, (e) our ability to comply with extensive laws, regulations and policies applicable to our operations (f) our ability to obtain an inventory of desirable new and used vehicles (including as a result of changes in the international trade environment), (g) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (h) our cost of financing and the availability of credit for consumers, (i) our ability to complete acquisitions and dispositions, on a timely basis, if at all and the risks associated therewith, (j) our ability to successfully integrate recent and future acquisitions and realize the expected benefits from consummated acquisitions, (k) foreign exchange controls and currency fluctuations, (l) the armed conflicts in Ukraine and the Middle East, (m) our ability to maintain sufficient liquidity to operate, and (n) a material failure in or breach of our vendors’ information technology systems and other cybersecurity incidents. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
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3 Group 1 Automotive 2025 1Q25 Summary Total Company Revenues $2,183 $2,680 $1,417 $1,755$189 $226 $576 $692 1Q24 1Q25 New Vehicle Used Vehicle Retail Finance & Insurance Parts & Service 23% 24% $4,471 $5,505 23% ($MM) *See Appendix for Non -GAAP Reconciliations Financial Highlights: + First quarter record total revenues of $5.5B, an increase of 23% YoY + Quarterly record total gross profit of $892M, an increase of 20% YoY + U.K. quarterly records in total revenues of $1.6 billion and gross profit of $217 million, a 110% and 92% increase YOY, respectively + U.K. SG&A as a % of gross profit reduced to pre-acquisition levels + First quarter diluted EPS from continuing ops was $9.64, a 10% decline YoY and adjusted diluted EPS from continuing ops was $10.17*, an increase of 7% YoY Strategic Highlights: + U.K. Restructuring: The execution of our U.K. restructuring plan successfully reduced SG&A as a % of gross profit to pre-acquisition levels. Additional cost saving activities will continue in 2025. + Tariffs: Having successfully navigated challenging market conditions in the past, we are well-prepared to remain agile in response to the latest tariff and policy changes. Our proven business model and adaptive strategy enable us to respond swiftly and manage costs effectively. + Share Repurchases: During 2025 we repurchased 0.4 million shares at an average price of $417.13 for $162 million.** $2,131 $2,278 $1,391 $1,437 $185 $202 $561 $590 1Q24 1Q25 Same Store Revenues 5% 9% 7% $4,623 $4,371 7% 3% 20% 20% **As of April 23, 2025
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4 Group 1 Automotive 2025 U.K. Restructuring - Completed 2024 Full Year Headcount & Costs Removed – £15m CTS & DDCPhase 1 Phase 2 Business Functions Executive Team & senior franchise oversight functions Actual Savings 21 heads | £4.4m Timing Structure completed November 30, 2024 Business Functions Elimination of duplicated corporate functions / roles Actual Savings 101 heads | £4.7m Timing Structure largely completed December 31, 2024 Business Functions Onshoring of CTS shared services from India to Maidstone & separation of Inchcape DDC services in the Philippines Actual Savings £2.0m Net headcount savings of 68 heads not included on UK Payroll Timing Structure completed December 31, 2024 bravoauto Business Functions Strategic closure of Inchcape legacy standalone used car locations Actual Savings 84 heads | £4.2m Timing Structure completed December 31, 2024
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5 Group 1 Automotive 2025 * U.K. Restructuring in Progress 2025 Full Year Headcount & Costs to be Removed ~£22m Phase 5Phase 3 Phase 4 Business Functions Refocus corporate functions to decentralise and allow greater staff autonomy Target Savings* 70 heads | £5m 1Q25 Update 125 heads | £5m Partially completed in 1Q25 Timing Structure to be completed by April 30, 2025 Business Functions Alignment of store payroll to agreed productivity metrics. Offset additional employer taxes resulting from last UK Government budget. Target Savings* 300 heads | £8m - £12m 1Q25 Update 330 heads | £8m - £12m Partially completed in 1Q25 Timing Structure to be completed by April 30, 2025 Business Functions Leveraging scale and procurement capacity to drive efficiencies Target Savings* Demo & Fleet £5m Procurement efficiency £5m Store closures £1-2m Partially completed in 1Q25 Timing Structure to be largely completed by June 30, 2025 *As noted in our Analyst Day presentation dated February 13, 2025
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6 Group 1 Automotive 2025 Auto Tariffs “Our U.S. business performed well in the current quarter, as we continued to execute while navigating the uncertainty that has arisen from ongoing tariff and trade policy changes. We are monitoring these developments and are prepared to be operationally nimble in the face of the changing landscape,” said Daryl Kenningham, Group 1’s President and Chief Executive Officer. Business Impacts: • Stress tested our business model with various macro-economic scenarios - the Company remains solidly profitable and maintains reasonable leverage • Reviewed and reduced our CAPEX • New Vehicle sales - Some pre-tariff accelerated buying seen at the end of March • Used Vehicle retail sales – Expect increase in demand from substitution of new vehicles • Used Vehicle wholesale price increasing – back up over MMR • Parts & Service – with average age and mileage of vehicles continuing to increase, segment performance should remain solid 2024 GPI New Vehicle Unit Sales by Production Country 51% 13% 10% 11% 9% 6% U.S. Mexico Canada Japan EU Other
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7 Group 1 Automotive 2025 Strong Earnings & Significant Cash Flow Generation Portfolio Optimization Parts & Service Growth Building Local Scale Full Rooftop Potential + Continued strong EPS: 29% CAGR over 2019 – 2024 + Adjusted free cash flows of $504 million in FY 2024 and $105 million in 1Q25(1) + Balanced M&A, share repurchases and dividends + $8.5 billion in acquired revenues since the beginning of 2021 + Strategic disposition of smaller, less profitable stores + Flexibility to engage in M&A due to low rent-adjusted leverage of 2.7x, as of March 31, 2025 + ~5.8 million shares repurchased since the beginning of 2021 representing 32% of our share count + Outperformance of the peer group’s average same store growth rate over several of the past years + Numerous innovations have driven this consistent outperformance: 4-Day work week is differentiator when recruiting; U.S. same store service tech headcount increased 8% versus March 2024 AI appointment setting has driven a 40% penetration in online appointment making + Provides a competitive advantage through more focused market representation and improved customer experience + Leverages marketing efforts to drive business within market / dealership clusters + Offers a unique value proposition by giving customers various GP1 options within a cluster + Centralized used vehicle inventory, reconditioning and positioning, reducing costs and increasing throughput + Optimizing operations at each rooftop + Standardization of key common processes and shared business resources structurally lowers operating costs + Scale amplifies the impact of operational excellence, allowing us to unlock additional value (1) See appendix in this presentation for the reconciliation of Non -GAAP measures We are a Fortune 500 company, ranked #229
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8 Group 1 Automotive 2025 Portfolio Optimization 2019-20 2021 2022 2023 2024 2025 YTD* M&A Acquisitions: $430M (15 franchises) Dispositions: $300M Capex: $172M Acquisitions: $2.5B (58 franchises) Dispositions: $155M Capex: $100M Acquisitions: $940M (11 franchises) Dispositions: $265M(1) Capex: $113M Acquisitions: $1.1B (9 franchises) Dispositions: $420M Capex: $139M Acquisitions: $3.9B (84 franchises) Dispositions: $450M Capex: $179M Acquisitions: $0.1B (4 franchises) Dispositions: $230M Capex: $33M Dividends Cash paid per share $1.69 $1.33 $1.50 $1.80 $1.88 $0.50 Buybacks Share Reduction: ≈ 5% Shares Repurchased: 0.9M shares at avg. price of $92.98 for total of $82M Share Reduction: ≈ 6% Shares Repurchased: 1.1M shares at avg. price of $190.82 for total of $211M Share Reduction: ≈ 18% Shares Repurchased: 3.0M shares at avg. price of $172.54 for total of $521M Share Reduction: ≈ 5% Shares Repurchased: 0.7M shares at avg. price of $236.78 for total of $173M Share Reduction: ≈ 4% Shares Repurchased: 0.5M shares at avg. price of $311.67 for total of $162M Share Reduction: ≈ 3% Shares Repurchased: 0.4M shares at avg. price of $417.13 for total of $162M (1) Excludes Brazil disposition *As of April 23, 2025
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9 Group 1 Automotive 2025 Business Diversification Parts & Service business provides stability in economic cycles + Parts & Service is a hedge to economic cycles. Historically declined around mid-single digits during a recession, which provides stability to help offset the cyclical nature of new vehicle sales. >40%Parts & Service is the heart of Group 1’s business model and generates of total gross profit >100% 1Q25 Fixed Absorption 49% 21% 35% 11% 13% 43% 4% 25% Revenue Gross Profit Finance & Insurance Parts & Service Used Vehicles New Vehicles May not add to 100% due to rounding; based on 1Q25 results Fixed absorption calculation: parts & service gross profit divided by total company fixed costs plus parts & service selling expenses
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10 Group 1 Automotive 2025 Diversified Geographic Footprint Amarillo (1) Gulfport (1) Pensacola/Panama City (3) Mobile (1) New Orleans (2) Kansas City (3) Sacramento (2) Los Angeles (5) El Paso (6) San Antonio (4) Miami (1) Washington DC Metro (7) NYC Metro (3) Boston Metro (18) New Hampshire (4) Charlotte (1) Houston (19) Philadelphia Metro (1) Atlanta (2) Columbus (4) Augusta (1) Columbia (1) Hilton Head (3) Santa Fe (3) Albuquerque (4) Lubbock (6) Dallas-Ft Worth (8) Shreveport (2) Tulsa (4) Oklahoma City (9) Maine (4) Atlantic City (2) Austin (7) Fort Myers (1) Corpus Christi (1) United States 17 States 144 Dealerships 67% of New Vehicle Unit Sales* Total U.S. & U.K.* 260 Dealerships 332 Franchises 39 Collision Centers 35 Brands Bedfordshire (1) Berkshire (4) Cambridgeshire (5) Cheshire (8) Derbyshire (4) Devon (1) Dorset (2) Gloucestershire (1) Greater Manchester (6) Hampshire (5) Hertfordshire (12) Lancashire (2) Leicestershire (3) Greater London (7) Merseyside (5) North Wales (1) Nottinghamshire (3) Shropshire (2) Surrey (6) West Sussex (1) Warwickshire (2) Wiltshire (2) Oxfordshire (1) United Kingdom England & Wales 116 Dealerships 33% of New Vehicle Unit Sales* Lincolnshire (1) *As of April 24, 2025; Sales based on YTD results as of March 31, 2025.
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11 Group 1 Automotive 2025 2025 Brand Diversification 18% 12% 9% 9% 8% 7% 7% 7% 5% 5% 3% 3% 2% 2% 1% <1% 2% Other May not add to 100% due to rounding Brand diversity reduces risk from evolving consumer preferences 36% 45% 19% Import Luxury Domestic Revenue Mix 45% 39% 16% Import Luxury Domestic Unit Mix
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12 Group 1 Automotive 2025 New Vehicle Overview 17 18 17 17 17 15 15 14 16 16 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 U.S. New Market Size1 (MM) Annual New Vehicle Units *Includes Brazil discontinued operations GPI on Target with the New Vehicle Industry 1Q25 GPI U.S. Same Store Retail Unit Sales: +5% YoY 1Q25 U.S. New Market Unit Sales1: +5% YoY 1Source: LMC Automotive/GlobalData Total New Vehicle Revenues ($MM)* 6,314 5,581 6,710 7,562 8,775 9,972 2019 2020 2021 2022 2023 2024 +10% 2019-2024 CAGR
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13 Group 1 Automotive 2025 Used Vehicle Overview 38 39 39 40 40 37 41 36 36 37 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 U.S. Used Market Size1 (MM) Annual Used Vehicle Units U.S. Market Share2 1 Source: Edmunds, Cox Automotive and NADA Used Vehicle Data*Includes Brazil discontinued operations 2Source: NADA -U.S. Used Vehicle Data 34% 34% 32% New Vehicle Dealers Used Vehicle Dealers Private Party Total Used Vehicle Revenues ($MM)* 3,722 3,414 4,874 6,092 6,135 6,642 2019 2020 2021 2022 2023 2024 Retail Wholesale +12% 2019-2024 CAGR GPI Outperforms the Used Vehicle Industry 1Q25 GPI U.S. Same Store Retail Unit Sales: +1% YoY 1Q25 U.S. Used Market Unit Sales2: Flat YoY
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14 Group 1 Automotive 2025 Finance & Insurance Overview Improved F&I Profitability via focus on compliance & growth: + Optimized financing strategy with OEM partners and consolidated lender relationships + Integration of compliance, training and benchmarking to offer a consistent and transparent experience for internal and external customers + Consistent product penetration U.S. F&I Gross Profit Per Retail Unit (PRU) $1,782 $1,951 $2,155 $2,428 $2,338 $2,368 $2,426 2019 2020 2021 2022 2023 2024 1Q25 U.S. F&I Penetration & Gross Profit PRU 2019 2020 2021 2022 2023 2024 1Q25 Finance 72% 73% 73% 70% 68% 70% 70% VSC 42% 44% 45% 45% 44% 44% 45% Maintenance 14% 14% 15% 18% 19% 19% 21% Other 17% 17% 20% 22% 21% 23% 24% Gross Profit $1,782 $1,951 $2,155 $2,428 $2,338 $2,368 $2,426 1Q25 U.S. Same Store F&I GP PRU: +4% YoY
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15 Group 1 Automotive 2025 Parts & Service Overview Strong Financials + Stability of free cash flow through economic cycles + Above sector-average growth through strategic emphasis on customer service Competitive Advantage + Technology: Easy online booking, #1 ranked call center(1) and customer management software improve efficiency and close rates + Talent Retention: Attractive benefits including 4-day work week for service departments + Market Positioning: Increasing vehicle complexity benefits franchised dealers with better trained and equipped service departments (1) Based on the 2024 PSI Service Telephone Effectiveness Study
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16 Group 1 Automotive 2025 Parts & Service Overview Consolidated P&S Revenue (1) ($MM) +11% 2019-2024 CAGR $1,510 $1,389 $1,6… $2,033 $2,222 $2,491 2019 2020 2021 2022 2023 2024 Service-to-Service Retention by Model Year* 78% 75% 74% 74% 73% 71% 70% 68% 67% 64% 60% 68% 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 10+ Yrs Average *Represents vehicles having 2 service visits in 12 months. 1Q25 U.S. SS P&S Revenue Change YoY +6% Customer Pay +29% Warranty -3% Wholesale -13% Collison 52% 61% 19% 24% 20% 5% 9% 9% Revenue Gross Profit Collision Wholesale Warranty Customer Pay 1Q25 U.S. SS P&S Mix (2) (1) Includes Brazil discontinued operations (2) May not add to 100% due to rounding; excludes internal reconditioning
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17 Group 1 Automotive 2025 Battery EV Parts & Service Outlook Our dealerships are equipped to service all powertrain types + GPI is investing in the tooling & technician training for all brands + We are adding EV lifts, battery replace & repair tools, and charging stations where needed + We are equipping collision centers in metro areas to repair all types of EVs, including electric delivery vans + Multiple collision centers have been recognized for EV repair for several years + BEVs still require repairs and maintenance, despite not needing some common low-margin maintenance services such as oil changes + As vehicle complexity continues to increase, it becomes more difficult for do-it-yourself and independent service shops to compete against franchised dealers who have the capital, tools, training, and software access to make more complicated repairs. Group 1’s analysis shows that we generate more revenue per repair order for vehicles with alternative powertrains
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18 Group 1 Automotive 2025 Structurally Lower SG&A % of GP We continue to fully leverage our scale and cost structure + Technology drives customer and employee efficiencies. + Variable cost structure allows management to quickly adjust to changes in macroeconomic environment. 32% U.S. Salesperson Productivity (1) Improvement compared to 2019 -8% 2025 SS Headcount Reduction compared to 2019 (Excludes increase in service technicians) 45.5% 48.3% 15.2% 16.5% 6.2% 6.5%2.5% 4.3% 2025 2019 Advertising Rent & Facility Other Personnel 69.5% 1Q25 Total Adjusted SG&A % of GP 75.6% 1Q19 Total Adjusted SG&A % of GP Total Adjusted SG&A % of GP (2) 610 Basis Point Improvement vs 2019 1Q25 1Q19
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19 Group 1 Automotive 2025 Group 1 Leadership Team Daryl Kenningham President, CEO and Director Joined GP1 July 2011 + 35+ Years Industry Experience + Manufacturer and Automotive Retailing Experience Daniel McHenry SVP and CFO Joined GP1 February 2007 + 15+ Years Industry Experience + Public Accounting and Automotive Retailing Experience Pete DeLongchamps SVP, Financial Services and Manufacturer Relations Joined GP1 July 2004 + 35+ Years Industry Experience + Manufacturer and Automotive Retailing Experience Mark Raban CEO, UK Operations Joined GP1 October 2024 + 20+ Years Industry Experience + Automotive Retailing and Finance Experience Gillian Hobson SVP, Chief Legal Officer and Corporate Secretary Joined GP1 January 2023 + 20+ Years Corporate Legal Experience + M&A, Capital Transactions, Securities Disclosure, and Corporate Governance Experience Mike Jones SVP, Aftersales Joined GP1 April 2007 (Retiring December 31, 2025) + 40+ Years Industry Experience + Automotive-related Experience Jamie Albertine SVP, Corporate Development and Procurement Joined GP1 March 2023 + 20+ Years Industry Experience + Automotive and Financial Service Experience Shelley Washburn SVP and Chief Marketing Officer Joined GP1 January 2024 + 30+ Years Industry Experience + Automotive Marketing and Automotive Retailing Experience
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20 Group 1 Automotive 2025 Group 1’s Core Values Integrity Transparency Professionalism Teamwork Respect We conduct ourselves with the highest level of ethics both personally and professionally when we sell to and perform service for our customers without compromising our honesty We promote open and honest communication between each other and our customers We set our standards high so that we can exceed expectations and strive for perfection in everything we do We put the interest of the group first, before our individual interests, as we know that success only comes when we work together We treat everyone, customers and colleagues alike, with dignity and equality
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21 Group 1 Automotive 2025 Corporate Responsibility Highlights* 1,035 EV charging stations available at Group 1 locations 100% of repair centers equipped for hybrids & EVs 8,000+ Solar panels installed at Group 1 locations 33,000+ Employee training hours completed 44% of Group 1 Board of Directors are women or people of color 53% Employee Diversity 2022: 51% 16,011 Team Members 2022: 15,491 80% / 76% US / UK Employee Engagement Scores *As of 12/31/2023
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Group 1 Automotive 2025 Appendix 2025 Financial Results
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23 Group 1 Automotive 2025 +11% CAGR $12,044 $10,852 $13,802 $16,412 $17,874 $19,934 2019 2020 2021 2022 2023 2024 Revenue* ($MM) +29% CAGR $10.93 $18.06 $35.02 $45.85 $44.24 $39.29 2019 2020 2021 2022 2023 2024 Adjusted EPS* +16% CAGR $237 $426 $656 $803 $581 $504 2019 2020 2021 2022 2023 2024 Adjusted FCF* ($MM) *Based on consolidated results; includes Brazil discontinued operations See appendix in this presentation for the reconciliation of Non -GAAP measures
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24 Group 1 Automotive 2025 Cash Flow Summary + $162 million in share buybacks year-to-date representing 3% of share count** + $33 million in capital expenditures year-to-date Rent Adjusted Leverage Ratio Total Liquidity ($MM) 2.5x 2.4x 3.0x 2.8x 2.7x 1Q24 2Q24 3Q24 4Q24 1Q25 $463 $644 $813 $1,216 $994 1Q24 2Q24 3Q24 4Q24 1Q25 $332 $504 $755 $916 $720 $683 $171 $138 $237 $426 $656 $803 $581 $504 $128 $105 2019 2020 2021 2022 2023 2024 1Q24 1Q25 Adjusted Operating Cash Flow* Adjusted Free Cash Flow* *See Appendix for Non-GAAP Reconciliations ** As of April 23, 2025
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25 Group 1 Automotive 2025 Income from Operations & Margin Trend 3.4% 5.0% 6.6% 6.5% 5.5% 4.7% 4.9% 4.4% Adjusted Operating Margin* Adjusted Operating Income* ($MM) 395 $526 $893 $1,058 $991 $945 $219 $243 2019 2020 2021 2022 2023 2024 1Q24 1Q25 *See Appendix for Non -GAAP Reconciliations
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26 Group 1 Automotive 2025 Debt & Interest Rate Exposure + GPI’s total debt at March 31, 2025 including floorplan was $5.0B: ~$2,160 million of floorplan debt ~$1,230 million of mortgage debt ~$1,250 million of bond debt ~$40 million of acquisition line debt ~$300 million of other debt including finance leases + ~60% of this debt is fixed rate when considering our swaps + A 100 bp increase in rates would only decrease annual EPS by ~$1.20 at current debt levels Floorplan Swap Layers in millions $108 $250 $279 $919 $311 $ 952 2025 2026 2027 2028 2029 Thereafter Debt Maturities in millions, excludes floorplan 2025 2026 2027 2028 2029 2030 2031 Swap Balance $525 $450 $300 $250 $200 $200 $100 Fixed Rate 1.31% 1.23% 1.11% 1.10% 1.20% 1.20% 0.65%
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27 Group 1 Automotive 2025 Real Estate Strategy GPI is shifting toward owning more real estate: + Control of dealership real estate is a strong strategic asset + Ownership means better flexibility and lower cost + As of March 31, 2025, GPI owned ~$2.5B of gross real estate (71% of dealership locations) financed through ~$1.2B of mortgage debt Region Owned Leased United States 115 29 United Kingdom 69 47 Total 184 76 Dealership Property Breakdown by Region (as of March 31, 2025) Dealerships Owned vs. Leased Property Trend % Owned % Leased # Properties 62% 64% 67% 71% 38% 36% 33% 29% 2019 2021 2023 2025 169 202 199 260
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28 Group 1 Automotive 2025 Exposure to Strong Economic Growth Group 1 will continue to benefit from Texas’ sustained economic growth (1) https://gov.texas.gov/business/page/workforce (2) https://gov.texas.gov/uploads/images/business/TXbytheNumbers.png (3) https://gov.texas.gov/uploads/files/business/BraggingRights.pdf + Texas continues to be the fastest growing state in the U.S. (1) + Texas is the leading destination for corporate relocation and expansion projects. (2) + Texas is named the nation’s ‘Best State for Business’ for the 20th consecutive year. (3) + Texas is the #1 U.S. exporter for 23 years in a row. (2) + Texas is home to more than 50 Fortune 500 headquarters. (2) + Texas accounts for 29% of GPI’s 1Q25 NV unit sales + GPI is the #1 Auto Retailer in Texas
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Group 1 Automotive 2025 Non-GAAP Reconciliations 2025 Financial Results
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30 Group 1 Automotive 2025 Non-GAAP Financial Measures, Same Store Data, and Other Data In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, out-of-period adjustments, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes, snow-storms and employee compensation costs associated with the CDK outage. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non- GAAP measures excluding such items. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted earnings per share, and constant currency. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures. In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures 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, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. In addition, 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. 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 U.S. dollars 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. The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters. Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.
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31 Group 1 Automotive 2025 Reconciliation: Adjusted Income from Operations (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 1Q24 1Q25 As Reported Income from Operations $358 $496 $884 $1,091 $969 $909 $243 $234 Asset impairments and accelerated depreciation 22 27 2 2 34 40 _ 1 (Gain) loss on real estate and dealership transactions (4) (5) (4) (39) (22) (56) (31) (8) Catastrophic Events 18 - 3 - 3 9 1 _ Severance Costs - 1 - - - 1 - 1 Legal matters and other professional fees 1 (3) (5) 1 6 4 3 3 Acquisition costs - - 13 2 1 21 3 1 Out-of-period adjustments - 11 - - - - - _ Restructuring Charges - - - - - 17 _ 11 Adjusted Income from Operations $395 $526 $893 $1,058 $991 $945 $219 $243 Total Revenues $11,598 $10,600 $13,482 $16,222 $17,874 $19,934 $4,471 $5,505 As Reported Operating Margin 3.1% 4.7% 6.6% 6.7% 5.4% 4.6% 5.4% 4.4% Adjusted Operating Margin 3.4% 5.0% 6.6% 6.5% 5.5% 4.7% 4.9% 4.4% Certain numbers may not compute due to rounding
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32 Group 1 Automotive 2025 Certain numbers may not compute due to rounding Reconciliation: Adjusted Cash Flow (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 1Q24 1Q25 Operating Cash Flow (GAAP) $371 $805 $1,260 $586 $190 $586 $254 $159 Change in Floorplan notes payable - credit facilities and other, excluding floorplan offset account and net acquisitions and dispositions (43) (314) (491) 320 505 133 (45) (19) Change in Floorplan notes payable – manufacturer affiliates associated with net acquisitions and dispositions and floorplan offset activity 4 12 (13) 10 25 (37) (39) (2) Adjusted Operating Cash (Non-GAAP) 332 504 755 916 720 683 171 138 Cap Ex (95) (77) (100) (113) (139) (179) (43) (33) Adjusted Free Cash Flow (Non-GAAP) $237 $426 $656 $803 $581 $504 $128 $105
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33 Group 1 Automotive 2025 Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP) (Unaudited) 1Q24 1Q25 As Reported EPS from Continuing Ops $10.76 $9.64 After Tax Adjustments: Asset impairments and accelerated depreciation 0.02 0.05 (Gain) loss on real estate and dealership transactions (1.68) (0.46) Catastrophic Events 0.03 - Severance 0.02 0.08 Legal matters and other professional fees 0.17 0.15 Acquisitions costs 0.17 0.08 Restructuring Charges - 0.63 Adjusted Diluted EPS $9.49 $10.17 Certain numbers may not compute due to rounding
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34 Group 1 Automotive 2025 Reconciliation: Adjusted Total Earnings Per Share (Non-GAAP) (Unaudited) 2019 2020 2021 2022 2023 2024 As Reported EPS $9.34 $15.51 $30.11 $47.14 $42.73 $36.81 After Tax Adjustments: Asset impairments and accelerated depreciation 0.94 1.69 0.07 0.10 1.82 2.26 (Gain) loss on real estate and dealership transactions (0.13) (0.23) (0.19) (1.86) (0.65) (2.94) Loss on extinguishment of long-term debt - 0.58 - - - - Catastrophic Events 0.72 - 0.12 - 0.18 0.53 Severance Costs - 0.10 - - - 0.05 Legal matters and other professional fees 0.05 (0.12) (0.23) 0.04 0.33 0.20 Acquisitions costs including related tax impact - - 0.57 0.12 0.05 1.46 Tax Rate Changes - - (0.10) - - - Out-of-period adjustments - 0.53 - - - - Non-cash (gain) loss on interest rate swaps - - 0.20 - (0.22) - Restructuring Charges - - - - - 0.92 Discontinued operations: debt redemption & non-cash CTA losses - - 4.46 0.31 - - Adjusted Diluted EPS $10.93 $18.06 $35.02 $45.85 $44.24 $39.29 Certain numbers may not compute due to rounding
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35 Group 1 Automotive 2025 Reconciliation: Adjusted SG&A (Non-GAAP) (Unaudited, $MM) 1Q19 1Q25 SG&A Expenses – GAAP $315 $617 Gain (loss) on real estate and dealership transactions 5 8 Catastrophic Events (2.0) - Legal items and other professional fees (2) (3) Severance Costs - (1) Acquisitions costs - (1) SG&A Expenses – Non-GAAP $317 $620 Gross Profit $419 $892 GAAP SG&A % gross profit 75.3% 69.2% Non-GAAP SG&A % gross profit 75.6% 69.5% Certain numbers may not compute due to rounding
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Group 1 Automotive 2025 Thank You