Group 1 Automotive generated total revenues of $5.4 billion, down 1.8% year-over-year, and achieved net income of $129.9 million, up $2.1 million versus prior year. Diluted EPS from continuing operations rose to $10.82 (from $9.64), while adjusted diluted EPS fell to $8.66 (from $10.17), reflecting a $2.87 per share asset disposition gain.

In the U.K., gross profit reached a record $230.6 million, a 6.3% increase driven by double-digit same-store parts & service and F&I growth. In the U.S., parts & service GP rose 5.0% to $400.0 million with margins improving to 56.8%, while new vehicle unit sales fell 6.6% and used unit sales declined 4.4%.

Under Volkswagen Group’s Ideal Network Plan, Group 1 acquired one Skoda and two Volkswagen U.K. dealerships expected to generate $135 million in annual revenues, and disposed of two Mercedes-Benz dealerships in California and one Volkswagen and one Skoda in the U.K., which together produced approximately $570 million in revenues. A subsequent agreement with Geely will add three new U.K. locations, with discussions ongoing for two additional Chinese OEMs.

During Q1, the company repurchased 205,190 shares at an average price of $353.08, totaling $72.4 million and representing 1.7% of outstanding shares, leaving $306.3 million remaining under authorization. Management initiated staffing and discretionary expense reductions in both markets to address high interest rates and elevated vehicle and fuel prices.