Table of Contents For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Penske Automotive Group, Inc. (Exact name of registrant as specified in its charter) or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) 2555 Telegraph Road Bloomfield Hill ...

Core Viewpoint - Penske Automotive Group (NYSE: PAG) has underperformed over the past year, remaining largely flat and missing out on significant market rallies despite reporting solid Q2 results [1] Company Performance - The company's stock has not shown meaningful growth, indicating potential challenges in capitalizing on market opportunities [1] Market Context - The broader market has experienced rallies, yet Penske Automotive Group's performance has not aligned with these trends, raising questions about its competitive positioning [1]

My "Buy" call on Penske Automotive Group (NYSE: PAG ) in February was premature, as it was basically the top tick before the stock turned down, providing much better buying opportunities after the April Liberation DayI retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions ...

Penske Automotive Group (PAG) Q2 2025 Earnings Call July 30, 2025 02:00 PM ET Company ParticipantsAnthony Pordon - EVP - IR & Corporate DevelopmentRoger Penske - Chairman & CEORichard Shearing - Chief Operating Officer of North American OperationsRandall Seymore - COO - International OperationsShelley Hulgrave - EVP & CFOJeff Lick - Managing DirectorRajat Gupta - Executive Director - AutosConference Call ParticipantsMichael Ward - Financial AnalystRonald Jewsikow - Director - Equity Research AnalystDavid Wh ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $7.7 billion, consistent with Q2 2024, impacted by strategic divestitures of approximately $200 million in revenue [6][7] - Earnings before taxes (EBT) increased by 4%, net income also increased by 4%, and earnings per share rose by 5% compared to 2024 [7] - Gross profit increased to $1.3 billion, with a gross profit margin of 16.9%, marking the eighth consecutive quarter of stable gross margin [8][9] - Selling, general and administrative expenses as a percentage of gross profit improved by 30 basis points to 69.9% [9] Business Line Data and Key Metrics Changes - North American retail automotive service and parts gross profit increased by 9%, with same-store service and parts revenue up by 7% [14] - Premier Truck Group's new unit sales increased by 4%, while used unit sales decreased by 8%, but used truck grosses increased over 50% [17] - Penske Transportation Solutions (PTS) revenue was $2.8 billion, with full-service revenue and contracts increasing by 4% [19] Market Data and Key Metrics Changes - Approximately 61% of revenue is generated in North America, 29% in the UK, and 10% from other international markets [11] - In the UK, new unit deliveries declined by 16% due to OEM product changes and reduced incentives [21] - Same-store used units in the UK declined by 23%, attributed to the realignment of the company's used-only dealerships [22] Company Strategy and Development Direction - The company focuses on diversification across retail automotive and commercial truck industries, leveraging a highly variable cost structure [12][34] - Recent trade agreements, particularly with the EU, are expected to benefit major partners by enhancing U.S. production exports [10] - The company is actively pursuing acquisitions and has a pipeline for potential M&A opportunities [104][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business and the benefits of diversification, cost control, and a strong balance sheet [34] - The operating environment remains fluid, with OEMs adjusting pricing strategies amid tariff negotiations [10][42] - Management anticipates a gradual improvement in used vehicle sourcing as lease returns increase in 2026 [13] Other Important Information - The company generated $472 million in cash flow from operations for the first half of 2025, with a trailing twelve-month EBITDA of over $1.5 billion [27] - The dividend was increased by 4.8% to $1.32 per share, marking the nineteenth consecutive quarterly increase [29] - The company has a backlog of $350 million for 2025 delivery in its commercial vehicle and power systems business [25] Q&A Session Summary Question: Can you quantify the moving pieces affecting unit sales in the US and the UK? - Management noted approximately $200 million in revenue loss due to divestitures and store closures, impacting new and used vehicle units sold [38][40] Question: What about the impact of the UK market? - The UK faced challenges with mobility credits and OEMs suspending wholesales, affecting premium sector sales [42] Question: How do you see GPU trajectory and cadence throughout the quarter? - Management indicated stable grosses throughout the quarter, with the highest in April, and noted a potential for gross compression moving forward [62] Question: What is the outlook for capital allocation with the additional cash flow? - Management stated that the additional cash flow provides more opportunities for capital allocation, including share buybacks and acquisitions [100][103] Question: Is the $1.5 billion acquisition target still realistic? - Management indicated that while the target may not be met, they remain focused on organic growth and acquisitions [110][112]

Financial Performance - Revenue remained relatively flat at $7662 million for Q2 2025 compared to $7697 million in Q2 2024, while six-month revenue increased by 1% to $15267 million[15] - Income attributable to common stockholders increased by 4% to $250 million in Q2 2025 and by 8% to $494 million for the six months ended June 30, 2025[15] - Penske Transportation Solutions (PTS) equity earnings increased to $535 million in Q2 2025 from $529 million, and $867 million for the six months ended June 30, 2025[14,47] - Adjusted EBITDA for the six months ended June 30, 2025, was $773 million, a 48% increase compared to $7379 million in the same period of 2024[55] Retail Automotive - Retail automotive same-store revenue decreased by 1% to $6319 million in Q2 2025[21] - Gross margin increased by 50 bps to 169%[14] - Same-store retail automotive service and parts revenue increased by 7%, with related gross profit up by 9%[14] Retail Commercial Trucks - Retail commercial truck revenue increased to $944 million in Q2 2025 from $892 million in Q2 2024[31] - Same-store total units decreased by 4% to 4995 in Q2 2025[32] - Same-store used units gross per unit increased by 56% to $7016[32] Capital Allocation - Dividends paid were $165 million for the six months ended June 30, 2025[9] - Share repurchases totaled $133 million for the six months ended June 30, 2025[9] - Capital expenditures were $147 million for the six months ended June 30, 2025[9]

Record Gross Profit Increases 3% to $1.3 Billion Same-Store Retail Automotive Gross Profit up 3% Record Retail Automotive Service and Parts Revenue up 8% and Record Related Gross Profit up 9% Earnings Before Taxes Increases 4% to $337 Million; Earnings Per Share Increases 5% to $3.78 Repurchased 630,000 Shares During the Second Quarter and 885,000 Shares Year-To-Date BLOOMFIELD HILLS, MI, July 30, 2025 – Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company a ...

Penske Automotive (PAG) came out with quarterly earnings of $3.78 per share, beating the Zacks Consensus Estimate of $3.56 per share. This compares to earnings of $3.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.18%. A quarter ago, it was expected that this auto dealership chain would post earnings of $3.27 per share when it actually produced earnings of $3.39, delivering a surprise of +3.67%.Over the last four quarter ...

Record Gross Profit Increases 3% to $1.3 BillionSame-Store Retail Automotive Gross Profit up 3%Record Retail Automotive Service and Parts Revenue up 8% and Record Related Gross Profit up 9%Earnings Before Taxes Increases 4% to $337 Million; Earnings Per Share Increases 5% to $3.78Repurchased 630,000 Shares During the Second Quarter and 885,000 Shares Year-To-DateBLOOMFIELD HILLS, Mich., July 30, 2025 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation servic ...

Dividend Increases 4.8% to $1.32 Per Share - the 19th Consecutive Quarterly IncreaseBLOOMFIELD HILLS, Mich., July 23, 2025 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers, today announced that its Board of Directors has approved a quarterly dividend of $1.32 per share, representing an increase of 4.8%, or $0.06 per share.  This represents the Company's 19th consecut ...