Penske Automotive (US:PAG)2025-07-31 20:07Revenue and Profit - Total revenue for the six months ended June 30, 2025, was $15.3 billion, with $13.1 billion from retail automotive dealerships, $1.8 billion from retail commercial truck dealerships, and $412.7 million from commercial vehicle distribution and other operations[116] - Gross profit for the same period was $2.6 billion, comprising $2.2 billion from retail automotive dealerships, $284.6 million from retail commercial truck dealerships, and $88.4 million from commercial vehicle distribution and other operations[116] - Retail automotive dealerships accounted for 85.7% of total revenues and 85.5% of total gross profit in the six months ended June 30, 2025[119] - For the six months ended June 30, 2025, total revenue increased by $122.3 million, or 0.8%, and gross profit increased by $56.3 million, or 2.2% compared to the same periods in 2024[140] - Total revenue for the three months ended June 30, 2025, decreased by $34.4 million, or 0.4%, while gross profit increased by $32.5 million, or 2.6%[140] Vehicle Sales - The company retailed and wholesaled over 280,000 vehicles in the six months ended June 30, 2025[117] - U.S. industry new light vehicle sales increased by 3.2% to 8.1 million units in the six months ended June 30, 2025, with retail sales up by 5.1%[133] - New retail unit sales (excluding agency) decreased by 6.5% to 47,546 units for the three months ended June 30, 2025[153] - Retail unit deliveries of new vehicles decreased by 2,963 units, or 5.0%, from 2024 to 2025, with a 0.2% decrease in same-store retail units delivered in the U.S. and an 11.0% decrease internationally[154] - Total retail unit sales decreased by 13,887 units, or 11.9%, from 2024 to 2025, with same-store retail unit sales decreasing by 10,995 units, or 9.9%[162] Commercial Truck Performance - Retail commercial truck dealerships represented 11.6% of total revenues and 11.1% of total gross profit in the same period, with 10,203 new and used trucks sold[120] - New retail unit sales of commercial trucks increased by 155 units, or 3.5%, from 2024 to 2025, while same-store new retail unit sales decreased by 154 units, or 3.4%[167] - New commercial truck retail sales revenue rose by $47.1 million, with a 1.1% decrease in same-store revenues offsetting this growth[169] - Used commercial truck retail sales revenue increased by $4.0 million, or 8.2%, driven by a rise in average selling price per unit[173] Service and Parts Revenue - Service and parts revenue increased by $63.8 million, or 8.5%, from 2024 to 2025, with same-store service and parts revenue increasing by $51.2 million, or 6.9%[163] - Same-store gross profit for service and parts increased by $63.7 million, or 7.5%, with a gross margin increase from 57.9% to 59.0%[199] - Service and parts revenue increased by $107.1 million, or 7.1%, from 2024 to 2025, with same-store service and parts revenue increasing by $80.7 million, or 5.5%[197] Expenses and Financials - Total SG&A expenses rose by $18.8 million, or 2.1%, with same-store SG&A expenses increasing by $16.3 million, or 1.9%[182] - Floor plan interest expense decreased by $3.3 million, or 7.1%, due to lower applicable rates despite increased inventory levels[184] - Income taxes increased by $3.4 million, or 4.1%, from 2024 to 2025, primarily due to an $11.4 million increase in pre-tax income[187] - Selling, General, and Administrative (SG&A) expenses increased by $52.6 million, or 3.0%, from 2024 to 2025, totaling $1,819.9 million[213] Cash Flow and Debt - Net cash provided by operating activities was $472.4 million for the six months ended June 30, 2025, compared to $691.1 million for the same period in 2024, a decrease of 31.7%[242] - Total long-term debt as of June 30, 2025, was $1,782.7 million, with a net long-term debt of $906.7 million after accounting for the current portion[230] - As of June 30, 2025, the company had $155.3 million in cash and approximately $2.2 billion available for borrowing under various credit agreements[224] Market Conditions and Risks - Higher inflation rates have recently impacted vehicle prices, parts costs, and consumer demand, potentially affecting the company's profitability[263] - The company is exposed to market risks from interest rate fluctuations, which could impact its earnings and cash flows[273] - Future results could be materially and adversely impacted by changes in economic conditions, political climate, tax structures, and foreign currency exchange rate volatility[275]