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HOUSTON, Nov. 11, 2025 — Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 250 automotive retailer operating 259 dealerships across the U.S. and U.K., has announced a significant boost to its shareholder value program. The company’s board of directors has approved a new share repurchase authorization totaling $500 million, alongside the declaration of a consistent quarterly dividend.
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Strategic Share Repurchase Program Expansion
The board’s decision increases the existing share repurchase authorization by $457 million, bringing the total to $500 million. Group 1 has already been active in the market, repurchasing 1,038,797 shares year-to-date 2025. This represents approximately 8% of the company’s outstanding common shares as of January 1, 2025. These shares were acquired at an average price of $417.38 each, for a total outlay of $434 million.
The company intends to execute future repurchases opportunistically, based on prevailing market conditions, regulatory requirements, and other strategic corporate considerations. These transactions may occur in the open market or through privately negotiated deals. Group 1 expects to fund the share repurchases primarily through cash generated from ongoing operations, underscoring the company’s healthy financial position. Repurchased shares will be held as treasury stock.
CNBC Analysis: The increased buyback authorization signals confidence from Group 1’s management in its long-term outlook. Share repurchases can boost earnings per share and return on equity, making the stock more appealing to investors. It also provides a floor for the stock price, potentially mitigating downside risk during market volatility. The decision could also reflect a strategic assessment that Group 1’s stock is currently undervalued. -
Consistent Dividend Payout
The board also declared a quarterly dividend of $0.50 per share, payable on December 15, 2025, to stockholders of record as of December 1, 2025. This dividend is in line with the previously announced 6% increase in the company’s annualized dividend rate, moving from $1.88 per share in 2024 to $2.00 per share in 2025.
CNBC Analysis: Maintaining a consistent and growing dividend demonstrates Group 1’s commitment to returning value to shareholders. This steady income stream can be particularly attractive to income-focused investors, contributing to the stock’s overall stability. It also reflects the company’s robust cash flow generation and financial discipline.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 Automotive is a leading automotive retailer with 259 dealerships, representing 324 franchises and operating 35 collision centers across the United States and the United Kingdom, offering 36 brands. Through its dealerships and omni-channel platform, the company sells new and used vehicles, facilitates vehicle financing, offers service and insurance contracts, provides maintenance and repair services, and sells vehicle parts.
CNBC Perspective: Group 1’s scale and diversified operations across multiple geographies and brands provide a buffer against regional economic downturns and brand-specific challenges. Their omnichannel approach aligns with changing consumer behavior, allowing for a seamless online-to-offline shopping experience. The company’s collision centers contribute a crucial revenue stream, especially as the automotive industry adapts to technological advancements and subsequent repair complexities.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions regarding the company’s business, the economy, and other future conditions. While management believes these statements are reasonable, there is no guarantee that future events will align with these expectations. Forward-looking statements are not assurances of future performance and involve risks and uncertainties that could cause actual results to differ materially. Readers are encouraged to consult Group 1 Automotive’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, for additional information regarding material factors that could affect the company’s results. Readers are cautioned against placing undue reliance on forward-looking statements, which are valid only as of the date of this release. The company assumes no obligation to update or revise these statements in light of new information, future events, or other developments.
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