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]

Core Insights - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [2][3][6] Group 1: Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses a company's future prospects through projected earnings and sales growth [4] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - VGM Score combines the three styles to highlight stocks with the best overall potential [6] Group 2: Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9][10] Group 3: Company Spotlight - Penske Automotive Group - Penske Automotive Group, Inc. operates automotive and commercial truck dealerships across multiple countries and employs over 28,900 people globally [11] - Currently rated 3 (Hold) by Zacks, Penske Automotive has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 11.73 [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.15 to $13.97 per share, indicating a positive outlook [12] - With strong Style Scores and a solid Zacks Rank, Penske Automotive is recommended for investors' consideration [13]

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 ...

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]

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $7.6 billion, a 2% increase year-over-year [6][7] - Earnings before taxes were $337 million, with net income of $244 million, resulting in earnings per share of $3.66, a 14% increase [7] - Adjusted earnings before taxes increased 5% to $310 million, and adjusted net income also rose 5% to $226 million, with adjusted earnings per share up 6% to $3.39 [7][29] Business Line Data and Key Metrics Changes - Same store retail automotive revenue increased by 2%, with related gross profit up 3% [6][7] - Same store retail automotive service and parts revenue rose 4%, with gross profit increasing by 6% [7] - New automotive units delivered increased by 68% on a same store basis, while used automotive units declined by 16.1% [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 [8] - In the UK, new vehicle market registrations increased by 6%, with same store new units delivered up by 9% [22][23] - In Australia, the company gained 150 basis points of market share in the on-highway market [26] Company Strategy and Development Direction - The company emphasizes diversification as a key differentiator, with a premium brand mix and investments in various markets [8] - The focus on inventory management and cost control is expected to sustain profitability [40][41] - The company is committed to maintaining a strong balance sheet and capital allocation strategy, including share repurchases and dividends [28][29] Management's Comments on Operating Environment and Future Outlook - The management noted that the automotive and commercial truck markets remain fluid, with ongoing tariff negotiations impacting pricing strategies [7][8] - The company is optimistic about its diversified model's ability to adapt to changing market conditions [34] - Management highlighted the importance of technician recruitment and training to support service operations [44][90] Other Important Information - The company generated $283 million in cash flow from operations during Q1, with EBITDA of $400 million [29] - The company repurchased 255,000 shares for $40 million during the quarter, with plans for continued opportunistic buybacks [29][30] - The dividend was increased by 54% since the end of 2023, with a current yield of approximately 3.1% [30][31] 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 [39][40] Question: Impact of warranty work on customer pay in parts and service - Management acknowledged that warranty work has increased, impacting customer pay growth, but noted improvements in gross profit per technician [42][44] Question: Price elasticity of demand amid tariff discussions - Management indicated that while there may be some impact on pricing, the premium luxury segment remains resilient, with leasing options helping mitigate costs [49][50] 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 [63][66] Question: Opportunities in the used vehicle market - Management emphasized a focus on younger used vehicles (zero to four years old) to maintain profitability and avoid brand damage [84][88] Question: Parts inflation and customer willingness to pay - Management noted that parts inflation could be influenced by tariffs, but customer willingness to pay remains strong [93][94]

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]