Group 1 (GPI) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 10:47 AM CDT 32 min read

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Date

Thursday, April 30, 2026 astatine 10 a.m. ET

Call participants

• President and Chief Executive Officer — Daryl Kenningham

• Senior Vice President and Chief Financial Officer — Daniel McHenry

• Senior Vice President, Manufacturer Relations, Corporate Development and Investor Relations — Peter C. DeLongchamps

Full Conference Call Transcript

Participating with maine connected today's telephone are Daryl Kenningham, our President and Chief Executive Officer, and Daniel McHenry, Senior Vice President and Chief Financial Officer. I would present similar to manus the telephone implicit to Daryl. Thank you, Daryl.

Daryl Kenningham: At Group 1 Automotive, Inc., we pridefulness ourselves connected performing efficaciously successful challenging times. We person successfully navigated economical recessions, the COVID pandemic, and the CDK outage successful 2024. We absorption connected what we tin power and by remaining a pure-play retailer, we minimize distractions and stay focused connected what we consciousness are our halfway competencies. We estimation that Q1 2026 upwind impacted our results by astir $7 cardinal successful gross profit, driven mostly by our aftersales business. Important to enactment is that Group 1 Automotive, Inc. typically pays our employees during upwind closures, and successful immoderate markets, our stores were closed for arsenic agelong arsenic a week this year. In 2026, we proceed to absorption connected our strengths.

Where our show did not conscionable our expectations, we acted promptly to code those issues, and I volition supply further details connected those areas aboriginal successful my remarks. In the U.S., our caller conveyance margins remained robust astatine implicit $3,300 per car, exceeding $3,250 for the 3rd consecutive quarter. We saw sequential betterment successful utilized conveyance PRUs and a $95 same-store year-over-year summation successful adjusted F&I PRU. Two years ago, we introduced a virtual F&I process successful our U.S. stores, giving customers the accidental to behaviour their transactions with an agent. This innovation is present installed successful one-third of our U.S. stores, doing 20% of our deals successful those stores. We are precise pleased with the results of virtual F&I.

Our PRU results are strong, transaction times person improved, improving lawsuit convenience and the wide experience. Thus far, lawsuit feedback is precise positive. In addition, compensation costs are little than compared to our in-store transactions. We expect continued maturation successful virtual F&I done the remainder of this twelvemonth and into 2027. In aftersales, we are committed to mounting ourselves apart. This quarter, we accrued same-store lawsuit wage gross profits by astir 6%. We are pleased that successful our U.S. business, our lawsuit wage repair bid number roseate by 2.5%.