Financial Analysis

ACQUISITIONS AND DISPOSITIONS The Company accounts for business combinations under the acquisition method of accounting, under which the Company allocates the purchase price to the assets acquired and liabilities assumed based on an estimate of fair value. Inchcape Acquisition On August 1, 2024, the Company completed the acquisition of Inchcape Retail automotive operations (Inchcape Retail), consisting of 54 dealership locations, certain real estate and three collision centers acro ss the U.K. (collectively referred to as the Inchcape Acquisition), for aggregate consideration of approximately $517.0 million . The Company has completed its analysis and assessment of all relevant fair value information and finalized the purchase price allocation of the Inchcape Acquisition. The results of the Inchcape Acquisition are included in the U.K. segment. The acquired goodwill is not deductible for income tax purposes. The following table summarizes the consideration paid and aggregate amounts of assets acquired and liabilities assumed as of December 31, 2025 (in millions): Total consideration $ 517.0 Identifiable assets acquired and liabilities assumed Cash $ 23.4 Contracts-in-transit and vehicle receivables, net 27.6 Accounts receivable, net 37.7 Inventories 384.3 Prepaid expenses and other current assets 14.1 Property and equipment 286.1 Operating lease assets 104.3 Intangible franchise rights 123.7 Total assets acquired 1,001.2 Floorplan notes payable 236.4 Accounts payable 204.6 Ac …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES From time to time, the Company or its dealerships are named in various types of litigation involving customer claims, employment matters, class action claims, purported class action claims, claims involving the manufacturers of automobiles, contractual disputes, vehicle related incidents and other matters arising in the ordinary course of business. The Company may be involved in legal proceedings or suffer losses that could have a material adverse effect on the Companys results of operations, financial condition or cash flows. In the normal course of business, the Company is required to respond to customer, employee and other third-party complaints. In addition, the manufacturers of the vehicles that the Company sells and services have audit rights allowing them to review the validity of amounts claimed for incentive, rebate or warranty-related items and charge the Company back for amounts determined to be invalid payments under the manufacturers programs, subject to the Companys right to appeal any such decision. Legal Proceedings As of December 31, 2025, the Company was not party to any legal proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse effect on the Companys results of operations, financial condition or cash flows. However, the results of current or future matters cannot be predicted with certainty; an unfavorable resolution of one or more of such matters could have a material adverse e …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

EMPLOYEE SAVINGS PLANS The Company has a deferred compensation plan to provide select employees with the opportunity to accumulate additional savings for retirement on a tax-deferred basis (the Deferred Compensation Plan). Participants in the Deferred Compensation Plan are allowed to defer receipt of a portion of their salary, compensation or bonus. Participants receive a rate of return as determined by management and approved by the Board of Directors. The balances due to participants of the Deferred Compensation Plan as of December 31, 2025 and 2024, were $116.8 million and $111.8 million, respectively, with $7.0 million and $7.9 million classified as current for each respective period. In the U.S., the Company offers a 401(k) plan to eligible employees and provides matching contribution to employees that participate in the plan. For the years ended December 31, 2025, 2024 and 2023, the matching contributions paid by the Company totaled $18.8 million, $17.3 million and $11.7 million, respectively. In the U.K., the Company offers private personal pension plans and provides matching contributions to eligible employees that participate in the plan. For the years ended December 31, 2025, 2024 and 2023, the matching contributions paid by the Company totaled $12.4 million, $8.5 million and $5.2 million, respectively. …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

DEBT Long-term debt consisted of the following (in millions): December 31, 2025 2024 4.00% Senior Notes due August 15, 2028 $ 750.0 $ 750.0 6.375% Senior Notes due January 15, 2030 500.0 500.0 Acquisition Line 964.0 95.0 Other debt: Real estate related 1,151.0 1,253.9 Finance leases 329.5 311.4 Other 18.2 19.0 Total other debt 1,498.7 1,584.3 Total debt 3,712.7 2,929.3 Less: unamortized debt issuance costs 13.2 16.1 Less: current maturities 259.0 175.3 Total long-term debt $ 3,440.5 $ 2,737.9 The aggregate annual maturities of debt for the next five years, excluding debt issuance costs, are as follows (in millions): Total Years Ended December 31, 2026 $ 260.0 2027 244.4 2028 926.0 2029 318.4 2030 1,575.6 Thereafter 388.3 Total $ 3,712.7 Acquisition Line The proceeds of the Acquisition Line (as defined in Note 13. Floorplan Notes Payable) are used for working capital, general corporate and acquisition purpose s. As of December 31, 2025, borrowings under the Acquisition Line, a component of the Revolving Credit Facility (as defined in Note 13. Floorplan Notes Payable), totaled $964.0 million . The weighted average interest rate on this facility was 5.52% for the year ended December 31, 2025. Real Estate Related The Company has mortgage loans in the U.S. and the U.K. that are paid in installments. As of December 31, 2025, borrowings outstanding under these facilities totaled $1,151.0 million, gross of debt issuance costs, comprised of $760.8 million in the U.S. and $390.2 millio …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys revenues disaggregated by its geographical segments (in millions): Year Ended December 31, 2025 U.S. U.K. Total New vehicle retail sales $ 8,528.7 $ 2,461.2 $ 10,989.9 Used vehicle retail sales 4,758.7 2,436.3 7,195.0 Used vehicle wholesale sales 357.5 249.8 607.3 Total new and used vehicle sales 13,644.9 5,147.3 18,792.2 Parts and service sales (1) 2,198.3 646.3 2,844.6 Finance, insurance and other, net (2) 783.5 151.1 934.6 Total revenues $ 16,626.8 $ 5,944.6 $ 22,571.4 Year Ended December 31, 2024 U.S. U.K. Total New vehicle retail sales $ 8,110.1 $ 1,862.3 $ 9,972.4 Used vehicle retail sales 4,550.7 1,629.2 6,179.9 Used vehicle wholesale sales 323.8 138.6 462.4 Total new and used vehicle sales 12,984.6 3,630.1 16,614.7 Parts and service sales (1) 2,052.7 438.3 2,491.0 Finance, insurance and other, net (2) 735.6 93.0 828.7 Total revenues $ 15,772.9 $ 4,161.5 $ 19,934.3 Year Ended December 31, 2023 U.S. U.K. Total New vehicle retail sales $ 7,433.6 $ 1,341.0 $ 8,774.6 Used vehicle retail sales 4,458.7 1,234.8 5,693.5 Used vehicle wholesale sales 314.4 127.1 441.4 Total new and used vehicle sales 12,206.6 2,702.9 14,909.5 Parts and service sales (1) 1,933.3 289.0 2,222.3 Finance, insurance and other, net (2) 674.3 67.6 741.9 Total revenues $ 14,814.2 $ 3,059.5 $ 17,873.7 (1) The Company has elected not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of these con …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION PLANS Under the Companys 2024 Long Term Incentive Plan (the Incentive Plan), the Company currently grants RSAs, RSUs and PSUs provided to Company employees and non-employee directors. The aggregate maximum number of shares that may be issued or transferred under the Incentive Plan is 0.7 million. The Incentive Plan expires on May 14, 2034. The terms of the awards (including vesting schedules) are established by the Compensation Committee of the Companys Board of Directors. As of December 31, 2025, there were 0.7 million shares available for issuance under the Incentive Plan. Restricted Stock Awards The Company grants RSAs to employees and non-employee directors. RSAs qualify as participating securities as each award contains non-forfeitable rights to dividends. As such, the two-class method is required for the computation of EPS. RSAs contain voting rights and are considered outstanding at the date of grant. Refer to Note 6. Earnings Per Share for further details. RSAs are subject to vesting periods of up to three years. Compensation expense for RSAs is calculated based on the average market price of the Companys common stock at the date of grant and recognized over the requisite vesting period on a straight-line basis. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate is adjusted annually based on the extent to which actual or expected forfeitures differ from the previous estimate. Th …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the most advantageous market in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical assets or liabilities in active markets. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and Cash Equivalents, Contracts-In-Transit and Vehicle Receivables, Accounts and Notes Receivable, Accounts Payable, Variable Rate Long-Term Debt and Floorplan Notes Payable The fair values of these financial instruments approximate their carrying values due to the short-term nature of these instruments and/or the existence of variable interest rates. Fixe …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Company has adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, effective for the year ended December 31, 2025. As a result of this adoption, the Companys income tax disclosure below now includes additional information related to the effective tax rate reconciliation and income taxes paid. Income from continuing operations before income taxes by geographic area was as follows (in millions): Years Ended December 31, 2025 2024 2023 Domestic $ 563.1 $ 652.2 $ 732.1 Foreign (113.2) 6.3 68.1 Total income before income taxes $ 449.9 $ 658.5 $ 800.2 Federal, state and foreign income tax provisions from continuing operations were as follows (in millions): Years Ended December 31, 2025 2024 2023 Federal: Current $ 75.6 $ 121.4 $ 142.9 Deferred 35.0 14.7 11.8 State: Current 12.2 19.2 23.8 Deferred 8.2 4.6 4.6 Foreign: Current 13.6 (2.7) 12.8 Deferred (18.4) 4.3 2.3 Provision for income taxes $ 126.2 $ 161.5 $ 198.2 A reconciliation of the statutory federal rate to the effective tax rate on income before income taxes from continuing operations was as follows (in millions): Years Ended December 31, 2025 2024 2023 PTI Tax % PTI Tax % PTI Tax % U.S. federal statutory rate $ 449.9 $ 94.5 21.0 % $ 658.5 $ 138.3 21.0 % $ 800.2 $ 168.0 21.0 % State income taxes, net of federal benefit (1) 15.6 3.5 % 19.7 3.0 % 22.7 2.8 % Foreign tax effects U.K. Goodwill impairments 22.7 5.0 % % % Other (0.1) % 2.3 0.3 % 1.9 0.2 % Other Foreign Jurisdiction ( …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company leases real estate, office equipment and dealership operating assets under long-term lease agreements and subleases certain real estate to third parties. The Company recognizes ROU assets and lease liabilities at commencement based on the present value of lease payments over the lease term. For such leases, the aggregate present value of the Companys lease payments may include options to purchase the leased property or lease terms with options to renew or terminate the lease, when the option is at the Companys sole discretion, and it is reasonably certain that the Company will exercise such an option. The Companys leases may also include rental payments adjusted periodically for inflation. Payments based on a change in an index or rates are not considered in the determination of lease payments for purposes of measuring the related lease liability. The Company discounts lease payments using its incremental borrowing rate based on information available as of the measurement date. Subsequent to the recognition of its ROU assets and lease liabilities, the Company recognizes lease expense related to its operating lease payments on a straight-line basis over the lease term. None of the Companys lease agreements contain material residual value guarantees or material restrictive covenants. For the Companys dealership operating leases, the Company has elected to separate lease and non-lease components and has allocated the consideration between the lease and non-lea …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures. The ASU requires that an entity disclose additional information about specific expense categories in the notes to financial statements. The standard will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact that the adoption of the provisions of the ASU will have on its consolidated financial statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . The amendments introduce a practical expedient that allows entities to measure expected credit losses on current accounts receivable and current contract assets by assuming that current conditions as of the reporting date will remain unchanged over the life of those assets. This update is intended to simplify the estimation process by reducing reliance on forecasts of future economic conditions. The standard will be effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact the adoption of the ASU will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RESTRUCTURING During the fourth quarter of 2025, the Company initiated a second U.K.-wide restructuring plan (the 2025 Restructuring Plan) to continue to reduce costs in the U.K. segment. The 2025 Restructuring Plan consists of further workforce realignment and strategic closing of certain facilities. The 2025 Restructuring Plan is expected to continue through 2026, and the Company expects to incur $2.8 million of additional restructuring charges associated with this plan. Any changes to the Companys estimates or timing of such charges will be reflected in the Companys results of operations in future periods. During the fourth quarter of 2024, the Company initiated the first U.K.-wide restructuring plan (the 2024 Restructuring Plan) related to the integration of Inchcape Retail with its existing U.K. operations. The 2024 Restructuring Plan, which included workforce realignment, the strategic closure of certain facilities and systems integrations, was completed as of September 30, 2025. All planned actions under the 2024 Restructuring Plan have been finalized, and the associated restructuring charges have been fully recognized in the Companys consolidated financial statements for the period ended December 31, 2025. The components of total restructuring charges were as follows (in millions): Years Ended December 31, 2025 2024 2025 Restructuring Plan 2024 Restructuring Plan 2024 Restructuring Plan Contract termination costs $ $ 4.1 $ 10.1 Facility closure costs 2.8 3.3 Employee …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES The Company derives its revenues primarily from the sale of new and used vehicles; sale of vehicle parts; performance of maintenance and repair services; and arrangement of vehicle financing and sale of service and other insurance contracts. Revenue recognition for each of these streams is discussed below. With respect to the cost of freight and shipping from the Companys dealerships to its customers, the Companys policy is to recognize such cost within Cost of Sale s in the Consolidated Statements of Operations. Taxes collected from customers and remitted to governmental authorities are reported on a net basis in the Companys Consolidated Financial Statements, thus excluded from revenues. The following tables present the Companys revenues disaggregated by its geographical segments (in millions): Year Ended December 31, 2025 U.S. U.K. Total New vehicle retail sales $ 8,528.7 $ 2,461.2 $ 10,989.9 Used vehicle retail sales 4,758.7 2,436.3 7,195.0 Used vehicle wholesale sales 357.5 249.8 607.3 Total new and used vehicle sales 13,644.9 5,147.3 18,792.2 Parts and service sales (1) 2,198.3 646.3 2,844.6 Finance, insurance and other, net (2) 783.5 151.1 934.6 Total revenues $ 16,626.8 $ 5,944.6 $ 22,571.4 Year Ended December 31, 2024 U.S. U.K. Total New vehicle retail sales $ 8,110.1 $ 1,862.3 $ 9,972.4 Used vehicle retail sales 4,550.7 1,629.2 6,179.9 Used vehicle wholesale sales 323.8 138.6 462.4 Total new and used vehicle sales 12,984.6 3,630.1 16,614.7 Parts and service …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION As of December 31, 2025, the Company had two operating and reportable segments: the U.S. and the U.K. The Company defines its segments as those operations whose results the Companys Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), regularly reviews to analyze performance and allocate resources to the U.S. and U.K. geographic areas. Each segment is comprised of retail automotive franchises that sell new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. The CODM predominantly uses the metric of income before income taxes in making decisions about the allocation of operating and capital resources to each segment, evaluating annual budget and forecast, as well as determining compensation for certain employees. The accounting policies of the segments are the same as those described in the Companys summary of accounting policies. All intercompany balances and transactions have been eliminated in consolidation. Refer to Note 1. Basis of Presentation, Consolidation and Summary of Accounting Policies for further discussion of the Companys accounting policies. Selected reportable segment data for continuing operations as follows (in millions): Year Ended December 31, 2025 U.S. U.K. Total Total revenues $ 16,626.8 $ 5,944.6 $ 22,571.4 Cost of sales $ 13,816.9 $ 5,132.7 $ 18,949.5 SG&A expenses $ 1,864.1 $ 681 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying Consolidated Financial Statements and notes thereto, have been prepared in accordance with U.S. GAAP and reflect the consolidated accounts of the parent company, Group 1 Automotive, Inc., and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Group 1 Automotive, Inc. and its subsidiaries are collectively referred to as the Company in these Notes to Consolidated Financial Statements. Discontinued operations presented in the accompanying Consolidated Financial Statements relate to the Companys Brazilian operations which were disposed of in 2022. Unless otherwise specified, disclosures in these Consolidated Financial Statements reflect continuing operations only. Certain amounts in the Consolidated Financial Statements and the accompanying notes may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented. These Consolidated Financial Statements reflect, in the opinion of management, all normal recurring adjustments necessary to fairly state, in all material respects, the Companys financial position and results of operations for the periods presented. Use of Estimates The preparation of the Companys financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. Thes …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES From time to time, the Company or its dealerships are named in various types of litigation involving customer claims, employment matters, class action claims, purported class action claims, claims involving the manufacturers of automobiles, contractual disputes, vehicle related incidents and other matters arising in the ordinary course of business. The Company may be involved in legal proceedings or suffer losses that could have a material adverse effect on the Companys results of operations, financial condition or cash flows. In the normal course of business, the Company is required to respond to customer, employee and other third-party complaints. In addition, the manufacturers of the vehicles that the Company sells and services have audit rights allowing them to review the validity of amounts claimed for incentive, rebate or warranty-related items and charge the Company back for amounts determined to be invalid payments under the manufacturers programs, subject to the Companys right to appeal any such decision. Legal Proceedings As of June 30, 2026, the Company was not party to any legal proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse effect on the Companys results of operations, financial condition or cash flows. However, the results of current or future matters cannot be predicted with certainty; an unfavorable resolution of one or more of such matters could have a material adverse effec …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Long-term debt consisted of the following (in millions): June 30, 2026 December 31, 2025 4.00% Senior Notes due August 15, 2028 $ 750.0 $ 750.0 6.375% Senior Notes due January 15, 2030 500.0 500.0 Acquisition Line 809.0 964.0 Other Debt: Real estate related 1,015.8 1,151.0 Finance leases 282.9 329.5 Other 16.8 18.2 Total other debt 1,315.5 1,498.7 Total debt 3,374.5 3,712.7 Less: unamortized debt issuance costs 11.5 13.2 Less: current maturities 314.6 259.0 Total long-term debt $ 3,048.4 $ 3,440.5 Acquisition Line The proceeds of the Acquisition Line (as defined in Note 10. Floorplan Notes Payable) are used for working capital, general corporate and acquisition purposes. As of June 30, 2026, borrowings under the Acquisition Line, a component of the Revolving Credit Facility (as defined in Note 10. Floorplan Notes Payable), totaled $809.0 million. The weighted average interest rate on this facility was 4.99% for the six months ended June 30, 2026. Real Estate Related The Company has mortgage loans in the U.S. and the U.K. that are paid in installments. As of June 30, 2026, borrowings outstanding under these facilities totaled $1.0 billion, gross of debt issuance costs, comprised of $696.0 million in the U.S. and $319.8 million in the U.K., respectively.

DebtDisclosureTextBlock

The following tables present the Companys revenues disaggregated by its geographical segments (in millions): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 U.S. U.K. Total U.S. U.K. Total New vehicle retail sales $ 2,023.0 $ 583.1 $ 2,606.1 $ 3,875.0 $ 1,293.5 $ 5,168.5 Used vehicle retail sales 1,112.8 605.5 1,718.3 2,230.4 1,262.9 3,493.2 Used vehicle wholesale sales 87.7 63.8 151.5 182.2 118.7 300.9 Total new and used vehicle sales 3,223.5 1,252.4 4,475.9 6,287.6 2,675.1 8,962.7 Parts and service sales (1) 531.0 161.3 692.4 1,058.2 338.6 1,396.8 Finance, insurance and other, net (2) 178.8 38.0 216.8 351.4 81.3 432.7 Total revenues $ 3,933.4 $ 1,451.7 $ 5,385.1 $ 7,697.2 $ 3,094.9 $ 10,792.2 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 U.S. U.K. Total U.S. U.K. Total New vehicle retail sales $ 2,132.9 $ 602.5 $ 2,735.5 $ 4,101.6 $ 1,313.8 $ 5,415.4 Used vehicle retail sales 1,203.2 645.0 1,848.2 2,347.6 1,256.0 3,603.6 Used vehicle wholesale sales 86.5 77.3 163.8 178.5 136.9 315.4 Total new and used vehicle sales 3,422.7 1,324.8 4,747.4 6,627.7 2,706.7 9,334.4 Parts and service sales (1) 555.5 162.8 718.4 1,086.8 323.7 1,410.4 Finance, insurance and other, net (2) 199.0 38.8 237.8 384.5 79.5 464.0 Total revenues $ 4,177.2 $ 1,526.4 $ 5,703.5 $ 8,098.9 $ 3,109.9 $ 11,208.8 (1) The Company has elected not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of these contrac …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the most advantageous market in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical assets or liabilities in active markets. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and Cash Equivalents, Contracts-In-Transit and Vehicle Receivables, Accounts and Notes Receivable, Accounts Payable, Variable Rate Long-Term Debt and Floorplan Notes Payable The fair values of these financial instruments approximate their carrying values due to the short-term nature of the instruments and/or the existence of variable interest rates. Fixed …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board ( FASB) issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures. The ASU requires that an entity disclose additional information about specific expense categories in the notes to financial statements. The standard will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact that the adoption of the provisions of the ASU will have on its consolidated financial statements and expects the adoption to result in additional disclosures regarding certain costs and expenses including purchases of inventory, employee compensation and depreciation, among other potential disclosure impacts. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements . The ASU is intended to simplify and clarify hedge accounting under ASC 815 and improves the alignment of hedge results with risk-management activities. The standard will be effective for fiscal years beginning after December 15, 2026, and interim periods within those annual reporting periods. The Company does not expect that the adoption of the provisions of the ASU will have a material impact on its consolidated financial statements. The Company adopted ASU 2025-05, Financial Instruments Credit Losses (Topic 326): Measur …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RESTRUCTURING During the fourth quarter of 2025, the Company pursued the continuation of its cost reduction efforts in the U.K. segment through the initiation of a second U.K.-wide restructuring plan (the 2025 Restructuring Plan). The 2025 Restructuring Plan consists of further workforce realignment and strategic closing of certain facilities. The 2025 Restructuring Plan is expected to continue throughout 2026, and the Company does not expect additional restructuring charges to be material. Any changes to the Companys estimates or timing of such charges will be reflected in the Companys results of operations in future periods. The Companys first U.K.-wide restructuring plan (the 2024 Restructuring Plan), related to the integration of Inchcape Retail with its existing U.K. operations, was completed in 2025. All associated restructuring charges were fully recognized in 2025. The components of total restructuring charges were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Contract termination costs $ $ $ $ 4.1 Facility closure costs 0.6 2.8 0.6 3.4 Employee related costs 1.6 2.3 3.0 7.5 Asset impairments 2.6 3.7 Systems integration costs 0.1 Total restructuring charges $ 2.1 $ 7.6 $ 3.6 $ 18.7 Charges associated with Restructuring Plans are included within Restructuring Charges on the Condensed Consolidated Statements of Operations. As of June 30, 2026, the Company has incurred $11.7 million of restructuring charges related to …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES The following tables present the Companys revenues disaggregated by its geographical segments (in millions): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 U.S. U.K. Total U.S. U.K. Total New vehicle retail sales $ 2,023.0 $ 583.1 $ 2,606.1 $ 3,875.0 $ 1,293.5 $ 5,168.5 Used vehicle retail sales 1,112.8 605.5 1,718.3 2,230.4 1,262.9 3,493.2 Used vehicle wholesale sales 87.7 63.8 151.5 182.2 118.7 300.9 Total new and used vehicle sales 3,223.5 1,252.4 4,475.9 6,287.6 2,675.1 8,962.7 Parts and service sales (1) 531.0 161.3 692.4 1,058.2 338.6 1,396.8 Finance, insurance and other, net (2) 178.8 38.0 216.8 351.4 81.3 432.7 Total revenues $ 3,933.4 $ 1,451.7 $ 5,385.1 $ 7,697.2 $ 3,094.9 $ 10,792.2 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 U.S. U.K. Total U.S. U.K. Total New vehicle retail sales $ 2,132.9 $ 602.5 $ 2,735.5 $ 4,101.6 $ 1,313.8 $ 5,415.4 Used vehicle retail sales 1,203.2 645.0 1,848.2 2,347.6 1,256.0 3,603.6 Used vehicle wholesale sales 86.5 77.3 163.8 178.5 136.9 315.4 Total new and used vehicle sales 3,422.7 1,324.8 4,747.4 6,627.7 2,706.7 9,334.4 Parts and service sales (1) 555.5 162.8 718.4 1,086.8 323.7 1,410.4 Finance, insurance and other, net (2) 199.0 38.8 237.8 384.5 79.5 464.0 Total revenues $ 4,177.2 $ 1,526.4 $ 5,703.5 $ 8,098.9 $ 3,109.9 $ 11,208.8 (1) The Company has elected not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of thes …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION As of June 30, 2026, the Company had two operating and reportable segments: the U.S. and the U.K. The Company defines its segments as those operations whose results the Companys Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), regularly reviews to analyze performance and allocate resources to the U.S. and U.K. geographic areas. Each segment is comprised of retail automotive franchises that sell new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. The CODM predominantly uses the metric of income before income taxes in making decisions about the allocation of operating and capital resources to each segment, evaluating annual budget and forecast, as well as determining compensation for certain employees. Selected reportable segment data for continuing operations were as follows (in millions). All intercompany balances and transactions have been eliminated in consolidation. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 U.S. U.K. Total U.S. U.K. Total Total revenues $ 3,933.4 $ 1,451.7 $ 5,385.1 $ 7,697.2 $ 3,094.9 $ 10,792.2 Cost of sales $ 3,274.9 $ 1,249.6 $ 4,524.5 $ 6,391.5 $ 2,662.2 $ 9,053.7 SG&A expenses $ 444.3 $ 179.2 $ 623.5 $ 862.5 $ 361.5 $ 1,224.1 Depreciation and amortization expense $ 23.9 $ 7.0 $ 30.9 $ 47.3 $ 14.7 $ 62.1 Asset impairments $ $ 1.0 $ 1.0 $ 1.9 $ 1.6 $ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

BASIS OF PRESENTATION AND CONSOLIDATION AND ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying Condensed Consolidated Financial Statements and notes thereto, have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Results for interim periods are not necessarily indicative of the results that can be expected for a full year and therefore should be read in conjunction with the Companys audited Financial Statements and notes thereto included within the Companys 2025 Form 10-K. All intercompany balances and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Financial Statements reflect the consolidated accounts of the parent company, Group 1 Automotive, Inc. and its subsidiaries, all of which are wholly owned. Discontinued operations presented in the accompanying Condensed Consolidated Financial Statements relate to the Companys Brazilian operations which were disposed of in 2022. Unless otherwise specified, disclosures in these Condensed Consolidated Financial Statements reflect continuing operations only. Certain amounts in the Condensed Consolidated Financial Statements and the accompanying notes may not compute due to rounding. All computations have been calculated using un …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing