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]

Company Overview - Penske Automotive Group, Inc. operates automotive and commercial truck dealerships across multiple countries including the United States, United Kingdom, Canada, Germany, Italy, and Japan, and also distributes commercial vehicles and related services primarily in Australia and New Zealand [12] Investment Ratings - Penske Automotive is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [13] - The company has a Momentum Style Score of B, with shares increasing by 6.8% over the past four weeks [13] Earnings Estimates - For fiscal 2025, four analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.14 to $13.94 per share [13] - Penske Automotive has an average earnings surprise of 2.6%, suggesting a positive trend in earnings performance [13] Investment Considerations - With a strong Zacks Rank and high Momentum and VGM Style Scores, Penske Automotive is recommended for investors looking for potential opportunities [14]

Industry Trends - Meetings with top management of Group 1 Automotive Inc (GPI) and Penske Automotive Group Inc (PAG) highlighted industry trends in tariff responses by OEMs, new and used vehicle sales, and parts and service trends [1] - Both companies experienced increased buying by OEMs in anticipation of tariffs being imposed [2] Sales Performance - There was a sharp uptick in sales during late March, but the trend began to normalize by mid-April, establishing a new normalized run-rate by mid- to late-May and into June [3] - Consumer health remains resilient with strong in-store traffic [3] - The used car market continues to be challenging for both Group 1 Automotive and Penske Automotive [3] Stock Performance - Shares of Group 1 Automotive declined by 0.48% to $446.20, while Penske Automotive's stock increased by 1.25% to $177.56 at market close on Tuesday [4] Analyst Ratings - Analyst Rajat Gupta reiterated an Overweight rating and price target of $435 for Group 1 Automotive, while maintaining an Underweight rating and price target of $160 for Penske Automotive [1]

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores Overview - Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, using an alphabetic rating system from A to F [2] - Stocks rated A have the best chance of outperforming, while those rated F have the least potential [2] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - **Growth Score**: Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] - **Momentum Score**: Targets stocks experiencing upward or downward trends in price or earnings, using metrics like one-week price change and monthly earnings estimate changes [5] - **VGM Score**: A composite score that combines Value, Growth, and Momentum Scores, providing a comprehensive view of a stock's attractiveness [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [9] Investment Strategy Recommendations - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks rated 3 (Hold) should also have Style Scores of A or B to maximize upside potential [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Penske Automotive Group (PAG) - Penske Automotive Group operates automotive and commercial truck dealerships across multiple countries and employs over 28,900 people globally [12] - PAG holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of A, indicating potential for momentum investors [13] - The company has seen a 2.5% increase in shares over the past four weeks, with positive earnings estimate revisions for fiscal 2025 [13] - With a solid Zacks Rank and strong Style Scores, PAG is recommended for investors' consideration [14]

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Dividend Announcement - Penske Automotive Group, Inc. has approved a quarterly dividend of $1.26 per share, marking a 3.3% increase or $0.04 per share, which is the 18th consecutive quarterly increase [1] - The dividend is payable on June 3, 2025, to shareholders of record as of May 27, 2025 [1] Securities Repurchase Authorization - The Board of Directors has authorized an additional $250 million in securities repurchase, increasing the total current authorization to $295.8 million [2] - The company may repurchase its outstanding common stock or debt through various means including open market transactions and accelerated share repurchase programs [2] Company Overview - Penske Automotive Group, Inc. is a diversified international transportation services company and a leading automotive and commercial truck retailer [3] - The company operates dealerships in multiple countries including the United States, Canada, Germany, and Japan, and is one of the largest retailers of commercial trucks in North America [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]

Group 1 - Penske Automotive Group (NYSE: PAG) is highlighted as a noteworthy player in the automotive retail space despite not being the favorite [1] - The management of Penske Automotive Group has a solid track record, indicating reliability and potential for growth [1] Group 2 - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - The service offers subscribers access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2]

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201%2E%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, highlighting total assets of $16.9 billion, revenue of $7.6 billion, and net income of $245.0 million Consolidated Condensed Balance Sheet Highlights (Unaudited) | Metric (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $6,053.6 | $5,927.8 | | **Total assets** | $16,931.9 | $16,720.9 | | **Total current liabilities** | $6,702.1 | $6,485.9 | | **Total liabilities** | $11,519.2 | $11,493.6 | | **Total equity** | $5,412.7 | $5,227.3 | Consolidated Condensed Statement of Income Highlights (Unaudited) | Metric (In millions, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenues** | $7,604.5 | $7,447.8 | | **Gross profit** | $1,269.0 | $1,245.2 | | **Operating income** | $315.5 | $327.6 | | **Gain on sale of dealership** | $52.3 | $— | | **Net income** | $245.0 | $216.2 | | **Diluted earnings per share** | $3.66 | $3.21 | Consolidated Condensed Statement of Cash Flows Highlights (Unaudited) | Metric (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $282.7 | $456.0 | | **Net cash provided by (used in) investing activities** | $3.5 | $(352.4) | | **Net cash used in financing activities** | $(241.7) | $(82.1) | | **Net change in cash and cash equivalents** | $46.0 | $20.5 | [Notes to Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) These notes detail the company's business structure, accounting policies, and financial components, including segment performance, lease obligations, and debt structure - The company is a diversified transportation services firm with operations in the U.S., U.K., Canada, Germany, Italy, Japan, and Australia, holding a **28.9% ownership interest** in Penske Transportation Solutions (PTS)[25](index=25&type=chunk)[30](index=30&type=chunk) - As of March 31, 2025, the company operated **352 retail automotive franchised dealerships** and **16 used vehicle dealerships**[26](index=26&type=chunk) Segment Income (EBT) for Three Months Ended March 31 (In millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Retail Automotive | $252.2 | $198.4 | | Retail Commercial Truck | $45.1 | $50.5 | | Other | $6.8 | $13.6 | | Non-Automotive Investments | $33.0 | $32.3 | | **Total** | **$337.1** | **$294.8** | - **Total long-term debt** as of March 31, 2025, was **$1,771.5 million**, with the **current portion** being **$778.5 million**, including senior subordinated notes, credit agreements, and mortgage facilities[75](index=75&type=chunk) - During Q1 2025, the company repurchased **254,406 shares** for **$39.9 million**, with **$117.0 million** remaining available under the repurchase program as of March 31, 2025[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, including a 2.1% revenue increase to $7.6 billion, segment results, and the impact of new U.S. tariffs and EV regulations [Outlook and Recent Developments](index=25&type=section&id=Outlook%20and%20Recent%20Developments) The company's outlook is shaped by new U.S. tariffs on imported autos and parts, expected to impact vehicle demand, and evolving EV regulations - The U.S. imposed a **25% tariff** on imported automobiles and parts effective April/May 2025, expected to increase vehicle costs and potentially lower new vehicle demand[113](index=113&type=chunk)[114](index=114&type=chunk) - The company anticipates that tariffs may reduce new vehicle demand but could potentially increase demand for used vehicles and its service and parts operations[114](index=114&type=chunk)[118](index=118&type=chunk) - Significant regulatory uncertainty exists regarding electric vehicle mandates and emissions standards in both the U.S. and the U.K., with potential policy shifts impacting the automotive industry[115](index=115&type=chunk)[116](index=116&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 total revenue grew 2.1% to $7.6 billion, driven by new vehicle sales and a $52.3 million gain from a dealership sale, despite rising SG&A expenses - Q1 2025 results include a pre-tax gain of **$52.3 million** from a dealership sale, resulting in a net after-tax gain of **$18.0 million**, or **$0.27 per share**[137](index=137&type=chunk) Retail Automotive New Vehicle Performance (Q1 2025 vs Q1 2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | New retail unit sales | 50,602 | 48,667 | 4.0% | | New sales revenue (M) | $3,022.1 | $2,802.6 | 7.8% | | Avg. gross profit per new vehicle | $5,059 | $5,229 | (3.3)% | Retail Automotive Used Vehicle Performance (Q1 2025 vs Q1 2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Used retail unit sales | 58,486 | 69,265 | (15.6)% | | Used retail sales revenue (M) | $2,200.5 | $2,336.2 | (5.8)% | | Avg. gross profit per used vehicle | $2,149 | $1,876 | 14.6% | Retail Commercial Truck New Vehicle Performance (Q1 2025 vs Q1 2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | New retail unit sales | 3,739 | 3,491 | 7.1% | | New retail sales revenue (M) | $527.2 | $494.2 | 6.7% | | Avg. gross profit per new truck | $8,960 | $9,909 | (9.6)% | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $118.4 million cash and $2.0 billion available credit, planning to repay or refinance $550 million senior notes - As of March 31, 2025, the company had **$118.4 million** in cash and approximately **$2.0 billion** available for borrowing under its credit agreements[178](index=178&type=chunk) - The company expects to repay or refinance its **$550 million** of 3.50% senior subordinated notes due September 1, 2025, using cash from operations or borrowings[175](index=175&type=chunk) - In Q1 2025, the company paid cash dividends of **$1.22 per share**, totaling **$81.8 million**, and repurchased **$39.9 million** of its common stock[181](index=181&type=chunk)[202](index=202&type=chunk) - The company received **$26.2 million** in cash distributions from its investment in Penske Transportation Solutions (PTS) in April 2025[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203%2E%20Quantitative%20%26%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations, impacting debt expenses, and foreign currency exchange rates, affecting international revenues - A **100-basis-point change** in interest rates would result in an approximate **$37.9 million** annual change to floor plan interest expense[223](index=223&type=chunk) - A **100-basis-point change** in interest rates would result in an approximate **$5.1 million** annual change to other interest expense on revolving credit facilities[222](index=222&type=chunk) - A **10% change** in average foreign currency exchange rates versus the U.S. Dollar would have impacted Q1 2025 revenues by approximately **$320.9 million**[227](index=227&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[230](index=230&type=chunk) - There were no changes in internal control over financial reporting during the most recent quarter that materially affected, or are reasonably likely to materially affect, internal controls[230](index=230&type=chunk) [PART II — OTHER INFORMATION](index=49&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=49&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are currently expected to have a material adverse effect on its financial condition - The company is not a party to any legal proceedings that are individually or in the aggregate reasonably expected to have a material effect on its financial condition or results of operations[232](index=232&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A%2E%20Risk%20Factors) This section updates key risk factors, including a UK FCA investigation into auto finance commissions and the impact of new 25% U.S. tariffs on imported autos - The U.K. Financial Conduct Authority (FCA) is investigating historical discretionary commission arrangements, potentially leading to an industry-wide redress scheme and compensation payments[235](index=235&type=chunk)[237](index=237&type=chunk) - A recent U.K. court judgment requiring lenders to repay commissions is pending appeal before the U.K. Supreme Court, creating uncertainty[236](index=236&type=chunk) - Newly imposed **25% U.S. tariffs** on imported automobiles and parts represent a significant risk, likely increasing vehicle costs, reducing consumer demand, and negatively impacting gross profit[239](index=239&type=chunk)[240](index=240&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased 255,228 shares of common stock, with $117.0 million remaining available under its repurchase program Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 25,271 | $149.95 | | Feb 2025 | 91,887 | $166.01 | | Mar 2025 | 138,070 | $152.18 | | **Total** | **255,228** | | - As of March 31, 2025, **$117.0 million** remained available for repurchases under the company's securities repurchase program[245](index=245&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205%2E%20Other%20Information) On April 29, 2025, the company amended its U.S. credit agreement, lowering the interest rate margin on certain revolving loans while maintaining capacity - On April 29, 2025, the company amended its U.S. credit agreement to lower the interest rate on certain uncollateralized borrowings[247](index=247&type=chunk) - The interest rate margin for certain borrowings was changed from a flat adjusted SOFR + 2.00% to a range of **adjusted SOFR + 1.50% to 2.00%**, based on a leverage ratio[248](index=248&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206%2E%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Twelfth Amendment to the U.S. Credit Agreement and CEO/CFO certifications - Exhibit 4.1 is the Twelfth Amendment to the Fifth Amended and Restated Credit Agreement[255](index=255&type=chunk) - Exhibits 31.1, 31.2, and 32 are certifications by the CEO and CFO as required by securities regulations[255](index=255&type=chunk)

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 ...