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Dividend Increases 3.3% to $1.26 Per Share - the 18th Consecutive Quarterly IncreaseSecurities Repurchase Authorization Increases by Additional $250 MillionBLOOMFIELD HILLS, Mich., May 14, 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 $1.26 per share, representing an increase of ...

Even though it is not my favorite player in the automotive retail space, one company in this industry that deserves attention is Penske Automotive Group (NYSE: PAG ). Management has a solid track recordCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and ...

Table of Contents 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 For the quarterly period ended March 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12297 Penske Automotive Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Penske Automotive Group (PAG) reported first-quarter 2025 adjusted earnings of $3.39 per share, which increased 6% year over year and beat the Zacks Consensus Estimate of $3.27. Better-than-expected results from the Retail Automotive segment, the Retail Commercial Truck segment and the Commercial Vehicle Distribution and Other segment contributed to the outperformance. The company registered net sales of $7.60 billion, beating the Zacks Consensus Estimate of $7.59 billion. The top line rose 2.1% from the ye ...

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $7.6 billion, a 2% increase year-over-year [5][6] - Earnings before taxes reached $337 million, with net income at $244 million, resulting in earnings per share of $3.66, a 14% increase [6][8] - Adjusted earnings before taxes increased 5% to $310 million, and adjusted net income also rose 5% to $226 million, with adjusted earnings per share increasing 6% to $3.39 [6][8] - The company achieved a stable gross margin for the seventh consecutive quarter, with a 70 basis point improvement in adjusted selling, general and administrative expenses as a percentage of gross profit compared to the previous year [5][6] Business Line Data and Key Metrics Changes - Same store retail automotive revenue increased by 2%, with related gross profit up 3% [5][6] - Same store retail automotive service and parts revenue rose 4%, with gross profit increasing by 6% [6][10] - New automotive units delivered increased by 68% on a same store basis, while used automotive units declined by 16% on a same store basis due to strategic realignment [8][9] - Average transaction prices for new vehicles increased by 4% to $59,202, while used vehicle transaction prices rose by 12% to $37,624 [9][10] Market Data and Key Metrics Changes - Approximately 59% of revenue was generated in North America, 30% in the UK, and 9% in other international markets [7] - In the UK, new vehicle market registrations increased by 6%, with the company outperforming the market with a 9% increase in same store new units delivered [21][22] - The US market saw an 8% increase in new units sold, with leasing on new vehicles rising to 33% [13][15] Company Strategy and Development Direction - The company emphasizes diversification as a key differentiator, with a premium brand mix and investments in various markets [7][8] - The focus on inventory management and cost control is critical for sustaining profitability and efficiency [38][60] - The company is committed to maintaining a strong balance sheet and cash flow to support growth through acquisitions and shareholder returns [26][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive and commercial truck markets remain fluid, with ongoing tariff negotiations impacting pricing strategies [6][7] - The company is optimistic about its diversified model's ability to adapt to changing market conditions [32] - Management highlighted the importance of technician recruitment and training to support service and parts operations [41][89] Other Important Information - The company generated $283 million in cash flow from operations, with EBITDA at $400 million [27] - Capital expenditures were down $26 million year-over-year, with $82 million paid in dividends during the quarter [27][28] - The company repurchased 255,000 shares for $40 million during the quarter, with a total of 750,000 shares repurchased year-to-date [27][28] Q&A Session Summary Question: Update on the UK market and Sytner Select - Management reported a 9% increase in same store new units delivered in the UK, with improved inventory management contributing to better gross profit [36][38] Question: Impact of warranty work on customer pay - Warranty work has increased significantly, impacting customer pay growth, but management noted improvements in gross profit per technician and service absorption [41][45] Question: Price elasticity of demand amid tariff discussions - Management indicated that while price increases are expected, the premium luxury segment may absorb these changes better due to higher residual values [47][49] Question: Sustainability of SG&A costs - Management expressed confidence in maintaining flat SG&A costs as a percentage of gross profit, attributing this to effective cost control measures [59][60] Question: Opportunities in the used vehicle market - Management emphasized a focus on younger used vehicles (0-4 years old) to maintain profitability and avoid brand damage from older inventory [82][84] Question: Capacity for parts and service growth - Management confirmed that there is capacity to grow service operations, with plans to continue increasing technician headcount [88][89] Question: Tariff impact on parts and service inflation - Management acknowledged potential parts inflation due to tariffs but noted that labor costs dominate repair orders, which may mitigate the impact [93][94] Question: Outlook for new GPU trends - Management indicated that new GPU trends are stabilizing, with expectations for continued improvement in gross profit margins [99][100]

Penske Automotive Group (PAG) Q1 2025 Earnings Call April 30, 2025 02:00 PM ET Company Participants Tony Pordon - Executive Vice President Investor Relations and Corporate Business DevelopmentRoger Penske - Chairman & CEORichard Shearing - Chief Operating Officer of North American OperationsRandall Seymore - Chief Operating Officer of International OperationsShelley Hulgrave - Executive Vice President & CFOJohn Murphy - Managing DirectorDaniela Haigian - Vice President - Equity ResearchRon Jewsikow - Direct ...

Financial Performance - First quarter revenue increased 2% to a record $7.6 billion compared to the same period in 2024[1] - Net income attributable to common stockholders rose 14% to $244.3 million, with earnings per share increasing 14% to $3.66[1] - Adjusted net income increased 5% to $226.3 million, and adjusted earnings per share rose 6% to $3.39[1] - Total revenue for the three months ended March 31, 2025, was $7,604.5 million, an increase of 2.1% from $7,447.8 million in the same period of 2024[22] - Gross profit for the three months ended March 31, 2025, was $1,269.0 million, up from $1,245.2 million in 2024, reflecting a gross margin of 16.7%[22] - The company reported an EBITDA of $399.5 million for the three months ended March 31, 2025, compared to $353.9 million in 2024[23] - Net Income attributable to Common Stockholders rose to $244.3 million in Q1 2025, a 13.5% increase from $215.2 million in Q1 2024[38] - Adjusted Net Income attributable to Common Stockholders increased by 5.2% to $226.3 million in Q1 2025 from $215.2 million in Q1 2024[38] - EBITDA for Q1 2025 was $399.5 million, reflecting a 12.9% increase from $353.9 million in Q1 2024[39] Revenue Breakdown - Retail automotive same-store revenue increased 2%, driven by a 4% increase in same-store service and parts revenue[4] - Total retail automotive revenue increased 1% to $6.6 billion, with total retail automotive gross profit rising 3% to $1.1 billion[6] - Retail automotive revenue increased by 1.4% to $6,569.3 million compared to $6,478.0 million in the prior year[22] - Total Revenue for Retail Automotive increased by 2.1% to $6,368.1 million, driven by a 7.2% increase in New Vehicles revenue to $2,923.3 million[29] - Retail Commercial Truck Operations saw a total revenue increase of 4.0% to $823.7 million, with New Vehicles revenue rising by 6.7% to $527.2 million[31] Vehicle Sales - New retail automotive units sold increased by 4.0% to 50,602 units, while used retail units decreased by 15.6% to 58,486 units[26] - Retail Automotive Same-Store Units for New Retail increased by 3.8% to 49,076, while Used Retail decreased by 10.6% to 57,175, resulting in a total retail decrease of 4.5% to 106,251 units[29] - Retail Commercial Truck Same-Store Units for New Retail decreased by 2.1% to 3,419, while Used Retail decreased by 9.1% to 954 units[33] Profitability Metrics - New vehicle gross profit per unit retailed declined by $87, while used vehicle gross profit per unit increased by $352 compared to Q4 2024[3] - Retail Automotive Same-Store Gross Profit rose by 2.6% to $1,053.4 million, with Service and Parts showing a significant increase of 6.3% to $450.2 million[29] - Retail Commercial Truck Same-Store Gross Profit fell by 7.6% to $133.2 million, with New Vehicles gross profit decreasing by 12.7% to $30.2 million[33] - Retail Automotive Same-Store Gross Margin remained stable at 16.5%, with Service and Parts showing an improvement of 120 basis points to 58.9%[29] - Retail Commercial Truck Gross Margin for New Vehicles decreased by 60 basis points to 6.4%, while Used Vehicles gross margin increased by 610 basis points to 11.4%[31] Shareholder Returns and Capital Management - The company repurchased 254,406 shares for approximately $39.9 million during the quarter, with an additional 495,570 shares repurchased for $71.2 million from April 1 to April 25, 2025[9] - Capital expenditures decreased to $76.6 million in Q1 2025 from $102.5 million in Q1 2024, while stock repurchases increased to $40.0 million from $32.9 million[35] Liquidity and Debt - As of March 31, 2025, the company had approximately $2.1 billion in liquidity, including $118 million in cash[9] - The leverage ratio at March 31, 2025, was 1.2x[9] - Cash and cash equivalents increased to $118.4 million from $72.4 million as of December 31, 2024[19] - Total Long-Term Debt decreased to $1,771.5 million as of March 31, 2025, from $1,852.0 million at December 31, 2024[36] - The Debt to Total Capitalization Ratio improved to 24.7% as of March 31, 2025, down from 26.2% at December 31, 2024[36] Inventory Management - New vehicle days' supply decreased to 39 days in Q1 2025 from 49 days in Q4 2024, indicating tighter inventory[36] Geographic Revenue Mix - The company’s North America revenue mix increased to 59.4% from 56.5% year-over-year, while the U.K. revenue mix decreased to 30.6% from 34.2%[22]

Core Insights - Penske Automotive (PAG) reported $7.6 billion in revenue for Q1 2025, a year-over-year increase of 2.1% and an EPS of $3.39 compared to $3.19 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue for Retail Automotive was $6.57 billion, slightly below the average estimate of $6.59 billion, reflecting a year-over-year change of +1.4% [4] - Revenue from New Vehicles in Retail Automotive was $3.02 billion, surpassing the average estimate of $2.99 billion, with a year-over-year increase of +7.8% [4] - Retail Commercial Truck revenue was reported at $823.70 million, slightly below the average estimate of $828.49 million, with a year-over-year change of +4% [4] - Revenue from Commercial Vehicle Distribution and Other was $211.50 million, exceeding the average estimate of $190.52 million, representing an 18.8% year-over-year increase [4] Market Performance - Penske's shares returned +7.7% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]