GROUP 1 AUTOMOTIVE INC (GPI): Results of Operations and Financial Condition

Group 1 Automotive (GPI) priced a $1.25B private placement of senior unsecured notes, including $625M due in 2032 and $625M due in 2035. Proceeds will fund the Hennessy Acquisition and repay borrowings. If the deal fails, the company must redeem the 2032 notes. The offering is expected to close on September 22, 2026.

Group 1 Automotive (NYSE: GPI) plans to offer $1.25B in senior notes, with $625M due in 2032 and $625M in 2035. Proceeds will fund the Hennessy Acquisition and repay borrowings. If the deal fails, the company will redeem the 2032 notes. Notes are offered to qualified buyers under exemptions.

Group 1 Automotive (GPI) reported Q1 2026 revenues of $5.4 billion, down 1.8%, with adjusted diluted EPS of $8.66 versus $10.17 a year earlier. Management cited U.S. weather ($7 million gross profit headwind) and macro affordability pressures. The company targets $50 million annual U.S. cost savings via a 700-employee reduction, and repurchased $72.4 million of shares.

Group 1 Automotive reported Q2 2026 earnings call updates on cost actions and margins. Management said it cut 700 employees and eliminated about $15m in vendor contracts, targeting $50m annualized savings and improved U.S. SG&A leverage. After-sales and U.K. after-sales gross profit rose, while it discussed a Geely framework for U.K. Chinese OEM entry and negotiations to exit some JLR operations.

Atlanta auto giant Hennessy sold in deal valued at $1.3 billion One of Atlanta’s largest luxury auto groups, Hennessy Automobile Companies, has struck a deal to sell its dealerships and real estate assets to a Houston-based group rapidly expanding in the region. Valued at $1.3 billion, the deal includes 10 dealerships representing luxury brands such as Porsche and Lexus, as well as facilities containing 500 service bays staffed by about 280 technicians, according to a news release.

Thursday, April 30, 2026 at 10:00 a.m. ET CALL PARTICIPANTS Senior Vice President, Manufacturer Relations and Financial Services - Peter DeLongchamps President and Chief Executive Officer - Daryl Kenningham Senior Vice President and Chief Financial Officer - Daniel McHenry TAKEAWAYS Total Revenues -- $5.4 billion, representing a 1.8% decline due to volume and margin pressure in the U.S. market.