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]

[Financial & Operational Highlights](index=1&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%20REPORTS%20QUARTERLY%20RESULTS) [Q2 2025 Financial & Operational Performance](index=1&type=section&id=Second%20Quarter%202025%20Operating%20Highlights) PAG reported flat Q2 2025 revenue at $7.7 billion, with gross profit up 3% to $1.3 billion, net income up 4% to $250 million, and EPS up 5% to $3.78 Q2 & H1 2025 Key Financial Results (vs. Prior Year) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $7.7B | $7.7B | 0.0% | $15.3B | $15.1B | +1.0% | | Gross Profit | $1.3B | - | +3.0% | $2.57B | $2.51B | +2.2% | | Net Income (to Common Stockholders) | $250.0M | $241.2M | +4.0% | $494.3M | $456.4M | +8.0% | | Earnings Per Share (EPS) | $3.78 | $3.61 | +5.0% | $7.44 | $6.81 | +9.0% | Q2 2025 Same-Store Operating Highlights (vs. Q2 2024) | Metric | Change | | :--- | :--- | | Retail Automotive Revenue | -1% | | Retail Automotive Gross Profit | +3% | | Service & Parts Revenue | +7% | | Service & Parts Gross Profit | +9% | | Overall Gross Margin | +50 bps | | SG&A as % of Gross Profit | -30 bps | - Management highlighted that the strong results were driven by **gross margin expansion** and **improved SG&A leverage** The company's diversification across premium brands, geographic markets (U.S. and international), and business lines (new/used vehicles, service, F&I) provides resilience against market changes like potential tariffs[3](index=3&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) [Retail Automotive Dealerships](index=3&type=section&id=Retail%20Automotive%20Dealerships) Retail Automotive revenue decreased 1% to $6.5 billion in Q2 2025, but gross profit rose 3% to $1.1 billion, primarily from a 9% increase in service and parts gross profit Retail Automotive Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $6.5B | -1% | | Total Gross Profit | $1.1B | +3% | | New Units Delivered | - | -6% | | Used Units Delivered | - | -16% | | Same-Store Service & Parts Gross Profit | - | +9% | - The **27% decrease** in international used unit sales was largely due to the realignment of the U.K. Sytner Select dealerships, which now focus on **higher margins and lower costs** rather than volume[6](index=6&type=chunk) [Retail Commercial Truck Dealerships](index=3&type=section&id=Retail%20Commercial%20Truck%20Dealerships) Retail Commercial Truck revenue increased 6% to $943.6 million in Q2 2025, with retail unit sales up 2%, and earnings before taxes growing to $54.2 million Retail Commercial Truck Performance - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Revenue | $943.6M | +6% | | Same-Store Revenue | - | 0% (Flat) | | Retail Unit Sales | 5,339 | +2% | | Same-Store Unit Sales | - | -4% | | Earnings Before Taxes | $54.2M | +4.8% | [Penske Transportation Solutions (PTS) Investment](index=3&type=section&id=Penske%20Transportation%20Solutions%20Investment) PAG recorded $53.5 million in equity earnings from its 28.9% stake in PTS for Q2 2025, driven by higher leasing and maintenance revenue, despite declines in truck rental and used truck sales - PAG has a **28.9% ownership stake** in PTS, which operates a managed fleet of **over 414,000 trucks, tractors, and trailers**[9](index=9&type=chunk)[14](index=14&type=chunk) Equity Earnings from PTS Investment | Period | 2025 | 2024 | | :--- | :--- | :--- | | Q2 Earnings | $53.5M | $52.9M | | H1 Earnings | $86.7M | $85.4M | [Corporate Development & Capital Allocation](index=3&type=section&id=Corporate%20Development%2C%20Capital%20Allocation%2C%20Liquidity%2C%20and%20Leverage) [Share Repurchases, Dividends, and Liquidity](index=3&type=section&id=Corporate%20Development%2C%20Capital%20Allocation%2C%20Liquidity%2C%20and%20Leverage) In H1 2025, PAG repurchased 885,272 shares for $133.3 million, increased its quarterly dividend by 4.8% to $1.32, and maintained strong liquidity of $2.3 billion with a 1.2x leverage ratio - Share Repurchases: Repurchased **885,272 shares** (**1.3% of outstanding**) for **$133.3 million** in H1 2025 **$295.7 million** remains available under the repurchase program[10](index=10&type=chunk)[11](index=11&type=chunk)[35](index=35&type=chunk) - Dividend Increase: The quarterly dividend was increased by **4.8%** to **$1.32 per share**, representing a **3.1% forward yield** and the **19th consecutive quarterly increase**[12](index=12&type=chunk) - Liquidity and Leverage: The company has approximately **$2.3 billion** in liquidity and a leverage ratio of **1.2x** as of June 30, 2025[11](index=11&type=chunk) - Acquisition: Completed the acquisition of a Ferrari dealership in Italy with expected annualized revenue of **$40 million** in July 2025[12](index=12&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Condensed Statements of Income](index=8&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Consolidated%20Condensed%20Statements%20of%20Income) Q2 2025 revenue was flat at $7.66 billion, with gross profit up 2.6% to $1.30 billion, and net income up 3.6% to $250.0 million, resulting in $3.78 EPS Consolidated Income Statement Summary - Q2 2025 vs Q2 2024 (in Millions) | Account | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $7,662.3 | $7,696.7 | (0.4)% | | Gross Profit | $1,296.6 | $1,264.1 | 2.6% | | Operating Income | $348.2 | $338.0 | 3.0% | | Income Before Taxes | $336.9 | $325.5 | 3.5% | | Net Income to Common Stockholders | $250.0 | $241.2 | 3.6% | [Consolidated Condensed Balance Sheets](index=9&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Consolidated%20Condensed%20Balance%20Sheets) As of June 30, 2025, total assets reached $17.39 billion, up from $16.72 billion, with inventories at $4.85 billion and total equity at $5.63 billion Balance Sheet Summary (in Millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $155.3 | $72.4 | | Inventories | $4,849.6 | $4,640.2 | | Total Assets | $17,393.4 | $16,720.9 | | Total Liabilities | $11,762.0 | $11,493.6 | | Total Equity | $5,631.4 | $5,227.3 | [Consolidated Operations Selected Data](index=10&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Consolidated%20Operations%20Selected%20Data) Q2 2025 saw North America's revenue share rise to 61.8%, total gross margin improve to 16.9%, and SG&A as a percentage of gross profit improve to 69.9% Q2 2025 Revenue & Gross Profit by Segment (in Millions) | Segment | Revenue | Gross Profit | | :--- | :--- | :--- | | Retail Automotive | $6,517.5 | $1,108.8 | | Retail Commercial Truck | $943.6 | $143.6 | | Commercial Vehicle Distribution & Other | $201.2 | $44.2 | Q2 Geographic Revenue Mix | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | North America | 61.8% | 59.8% | | U.K. | 27.2% | 31.2% | | Other International | 11.0% | 9.0% | [Detailed Operational Metrics](index=12&type=section&id=Detailed%20Operational%20Metrics) [Retail Automotive Operations (Total & Same-Store)](index=12&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Retail%20Automotive%20Operations) Q2 2025 total retail automotive unit sales declined 11.9%, but gross profit per used vehicle surged 27.7% to $2,326, and service and parts gross profit rose 9.4% Q2 2025 Total Retail Automotive Performance Highlights | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Units Retailed | 102,545 | 116,432 | (11.9)% | | Service & Parts Revenue | $816.6M | $752.8M | +8.5% | | Gross Profit per Used Vehicle | $2,326 | $1,822 | +27.7% | | Service & Parts Gross Margin | 58.9% | 58.4% | +50 bps | Q2 2025 Same-Store Retail Automotive Performance Highlights | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Same-Store Revenue | $6,318.9M | $6,400.6M | (1.3)% | | Total Same-Store Gross Profit | $1,080.1M | $1,048.4M | +3.0% | | Same-Store Service & Parts Gross Profit | $469.0M | $431.1M | +8.8% | [Retail Commercial Truck Operations (Total & Same-Store)](index=18&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Retail%20Commercial%20Truck%20Operations) Q2 2025 total commercial truck revenue grew 5.7%, driven by new vehicle revenue, with gross profit per used vehicle surging 56.3%, despite a slight 0.6% decline in total gross profit Q2 2025 Total Retail Commercial Truck Performance Highlights | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $943.6M | $892.3M | +5.7% | | Total Gross Profit | $143.6M | $144.5M | (0.6)% | | Gross Profit per New Vehicle | $7,889 | $8,765 | (10.0)% | | Gross Profit per Used Vehicle | $7,037 | $4,502 | +56.3% | Q2 2025 Same-Store Retail Commercial Truck Performance Highlights | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Same-Store Revenue | $883.9M | $887.3M | (0.4)% | | Total Same-Store Gross Profit | $135.6M | $143.1M | (5.2)% | | Same-Store New Vehicle Gross Profit | $33.2M | $39.0M | (14.9)% | [Supplemental Information](index=23&type=section&id=Supplemental%20Information) [Supplemental Data](index=23&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Supplemental%20Data) Q2 2025 retail automotive revenue from premium brands was 72%, with $93.3 million in share repurchases, and new vehicle days' supply at 57 days - The retail automotive revenue mix remains heavily weighted towards premium brands, which constituted **72% of revenue** in Q2 2025, consistent with the prior year[35](index=35&type=chunk) Inventory Days' Supply | Vehicle Type | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | New Vehicle | 57 days | 49 days | | Used Vehicle | 44 days | 47 days | Q2 2025 Capital Allocation (in Millions) | Item | Amount | | :--- | :--- | | Capital Expenditures | $70.8 | | Stock Repurchases | $93.3 | [Non-GAAP Reconciliations](index=25&type=section&id=PENSKE%20AUTOMOTIVE%20GROUP%2C%20INC.%20Consolidated%20Non-GAAP%20Reconciliations) H1 2025 GAAP net income of $494.3 million and EPS of $7.44 are adjusted for a $52.3 million gain and $25.2 million in impairments, yielding adjusted net income of $476.3 million and EPS of $7.17 H1 2025 GAAP to Non-GAAP Reconciliation | Metric | Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $494.3M | ($18.0M) | $476.3M | +4.4% | | EPS | $7.44 | ($0.27) | $7.17 | +5.3% | - Adjustments for H1 2025 include excluding a **$38.9 million** after-tax gain on a dealership sale and adding back **$20.9 million** in after-tax impairments and other charges[39](index=39&type=chunk)

Here is how Penske performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Penske here>>> For the quarter ended June 2025, Penske Automotive (PAG) reported revenue of $7.66 billion, down 0.5% over the same period last year. EPS came in at $3.78, compared to $3.61 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $7.87 billion, representing a surprise of -2.63%. The com ...

Group 1 - Penske Automotive reported quarterly earnings of $3.78 per share, exceeding the Zacks Consensus Estimate of $3.56 per share, and showing an increase from $3.61 per share a year ago, resulting in an earnings surprise of +6.18% [1] - The company posted revenues of $7.66 billion for the quarter ended June 2025, which was a 2.63% miss compared to the Zacks Consensus Estimate, and a slight decrease from $7.7 billion year-over-year [2] - Penske shares have increased by approximately 10.2% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Group 2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The trend of estimate revisions for Penske was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $3.51 on revenues of $7.69 billion, and for the current fiscal year, it is $13.73 on revenues of $30.78 billion [7] Group 3 - The Automotive - Retail and Whole Sales industry, to which Penske belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may negatively impact stock performance [8] - Worksport Ltd., another company in the same industry, is expected to report a quarterly loss of $0.76 per share, reflecting a year-over-year change of +49.3%, with revenues anticipated to be $4.07 million, up 112% from the previous year [9]

Core Insights - Penske Automotive Group reported a record gross profit of $1.3 billion, reflecting a 3% increase year-over-year [1] - The company achieved a 4% increase in earnings before taxes to $337 million and a 5% increase in earnings per share to $3.78 [1] - Revenue remained flat at $7.7 billion compared to the same period in 2024, with net income attributable to common stockholders increasing by 4% to $250 million [1][3] Financial Performance - For the second quarter of 2025, total revenue was $7.7 billion, unchanged from the previous year, while net income rose to $250 million from $241.2 million [1][3] - Earnings per share increased to $3.78 from $3.61, driven by a positive impact from foreign currency exchange of $136.6 million [1][3] - For the first half of 2025, revenue increased by 1% to $15.3 billion, with net income rising 8% to $494.3 million [3][4] Retail Automotive Operations - Retail automotive same-store revenue decreased by 1%, with new vehicle sales down 2% and used vehicle sales down 1% [5][6] - Retail automotive gross profit increased by 3% to $1.1 billion, driven by a 9% increase in service and parts revenue [6][7] - Total new units delivered decreased by 6%, while used units delivered decreased by 16% [4][20] Retail Commercial Truck Dealerships - Retail commercial truck revenue increased by 6% to $943.6 million, with retail unit sales rising 2% [8][19] - For the first half of 2025, revenue from retail commercial trucks increased by 5% to $1.8 billion [8][19] Penske Transportation Solutions - Penske Transportation Solutions recorded earnings of $53.5 million for the second quarter, up from $52.9 million in the previous year [9] - The company operates a managed fleet of over 414,000 trucks, tractors, and trailers [9] Share Repurchase and Capital Allocation - The company repurchased 885,272 shares of common stock in the first half of 2025, representing approximately 1.3% of its outstanding shares [10] - As of June 30, 2025, the company had approximately $2.3 billion in liquidity, including $155 million in cash [10] Corporate Developments - The company completed the acquisition of a Ferrari dealership in Italy, expected to generate annualized revenue of $40 million [11] - The Board of Directors approved a 4.8% increase in the quarterly dividend to $1.32 per share, marking the 19th consecutive quarterly increase [11]

Group 1 - Penske Automotive Group, Inc. announced a quarterly dividend increase of 4.8% to $1.32 per share, marking the 19th consecutive quarterly increase [1][2] - The dividend is payable on September 3, 2025, to shareholders of record as of August 15, 2025 [1] - The increase reflects the company's strong balance sheet and cash flow, as stated by President Robert H. Kurnick, Jr. [2] Group 2 - Penske Automotive Group operates internationally, with dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia [2] - The company is one of the largest retailers of commercial trucks in North America and employs over 28,700 people worldwide [2] - Penske Automotive owns 28.9% of Penske Transportation Solutions, which manages a large trucking fleet and provides transportation and supply chain solutions [2]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Penske Automotive (PAG) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Group 1: Earnings Expectations - Penske Automotive is expected to report quarterly earnings of $3.56 per share, reflecting a year-over-year decrease of 1.4% [3]. - Revenue projections stand at $7.87 billion, indicating a 2.2% increase from the previous year [3]. Group 2: Estimate Revisions - The consensus EPS estimate has been revised down by 0.78% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Penske is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.60% [12]. Group 3: Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, especially when combined with a strong Zacks Rank [10]. - Penske currently holds a Zacks Rank of 4, complicating predictions of an earnings beat despite the positive Earnings ESP [12]. Group 4: Historical Performance - In the last reported quarter, Penske exceeded the expected earnings of $3.27 per share, achieving $3.39, which was a surprise of +3.67% [13]. - Over the past four quarters, Penske has surpassed consensus EPS estimates three times [14]. Group 5: Industry Comparison - Lithia Motors (LAD), a competitor in the automotive retail sector, is projected to report earnings of $9.55 per share, reflecting a year-over-year increase of 21.4% [18]. - Lithia's revenue is expected to reach $9.53 billion, up 3.3% from the previous year, with a consensus EPS estimate revised down by 0.7% [19].

Industry Overview - The Zacks Auto Retail and Wholesale industry is experiencing significant changes due to evolving consumer habits, policy shifts, and strategic actions by key players [1][3] - The industry is consumer-driven, with performance closely tied to economic conditions, where increased disposable income typically leads to higher vehicle purchases [3] - The COVID-19 pandemic has accelerated the industry's shift towards online tools and e-commerce, a trend expected to continue [3] Factors Influencing Industry Dynamics - Car affordability has seen a modest improvement due to rising consumer incomes and dealer incentives, but tariffs on imported vehicles continue to pose challenges, potentially adding up to $5,700 to the cost of new cars [4] - The EV market is in a transitional phase, with first-half 2025 U.S. EV sales reaching 607,089 units, a 1.5% year-over-year increase, but a decline in demand is anticipated in the fourth quarter without government subsidies [5] - Auto retailers are making strategic acquisitions to enhance market share and diversify offerings, while also investing in digital platforms to meet changing customer expectations [2][6][7] Market Performance - The Zacks Auto Retail & Wholesale industry ranks 91, placing it in the top 37% of 245 Zacks industries, indicating positive near-term prospects [8][9] - Over the past year, the industry has outperformed the S&P 500, returning 16.3% compared to the S&P 500's 12.6% growth [10] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.95X, significantly lower than the S&P 500's 17.64X and the sector's 20.66X [13] Company Highlights - **Penske Automotive**: Completed acquisitions in 2024 representing nearly $2.1 billion in annualized revenues, with a strong order backlog and a low long-term debt-to-capitalization ratio of 15.5% [17][18] - **Lithia Motors**: Expanded its footprint through acquisitions, adding $3.8 billion in 2023 and $5.9 billion in 2024 in annualized revenues, with a focus on digital platforms to enhance customer experience [22][23] - **AutoNation**: Continues to grow through strategic acquisitions and digital transformation, with a recent purchase expected to add $200 million in annual revenues [25][26] - **Group 1 Automotive**: Achieved significant revenue growth through acquisitions, adding over $1 billion in 2023 and $3.9 billion in 2024, while focusing on an omnichannel strategy [31][32]

Core Viewpoint - Penske Automotive Group, Inc. will release its financial results for the three and six months ended June 30, 2025, on July 30, 2025, and will hold a conference call to discuss these results later that day [1][2]. Company Overview - Penske Automotive Group, Inc. is a diversified international transportation services company and a leading automotive and commercial truck retailer, headquartered in Bloomfield Hills, Michigan [3]. - The company operates dealerships in multiple countries including the United States, United Kingdom, Canada, Germany, Italy, Japan, and Australia, and is one of the largest retailers of commercial trucks in North America for Freightliner [3]. - Penske Automotive employs over 28,700 people globally and owns 28.9% of Penske Transportation Solutions, which manages a large trucking fleet in North America [3]. Financial Communication - An investor presentation and earnings press release will be available on the company's website starting July 30, 2025 [2]. - A conference call will take place at 2:00 PM Eastern Daylight Time on the same day, with specific dial-in numbers provided for U.S. and international participants [2]. - A replay of the conference call will be accessible for 7 days after the event [2].

Core Insights - Penske Automotive Group has acquired a Ferrari dealership in Modena, Italy, enhancing its luxury brand presence in the region to 29 automotive retail locations [1][2] - The new dealership is expected to generate annualized revenue of approximately $40 million [1] Company Overview - Penske Automotive Group, Inc. is a diversified international transportation services company with operations in eight countries and across four continents [2] - The company operates dealerships in various countries including the United States, United Kingdom, Canada, Germany, Italy, Japan, and Australia, and is a major retailer of commercial trucks in North America [2] - Penske Automotive employs over 28,700 people globally and holds a 28.9% stake in Penske Transportation Solutions, which manages a large fleet of over 428,000 trucks, tractors, and trailers [2]