Penske Automotive (PAG) - 2025 Q1 - Quarterly Results

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]