Penske Automotive (US:PAG)2025-10-29 16:11Revenue Performance - Retail automotive same-store revenue increased by 5% in Q3 2025, reaching a total of $7.7 billion compared to $7.6 billion in Q3 2024[2]. - Total retail automotive revenue for the nine months ended September 30, 2025, increased by 1% to $23.0 billion, while net income attributable to common stockholders rose by 4% to $707.3 million[5]. - Revenue for the three months ended September 30, 2025, was $7,695.3 million, a 1.4% increase from $7,590.8 million in 2024[20]. - Total revenue for the three months ended September 30, 2025, was $6,570.1 million, reflecting a 3.6% increase compared to the prior year[29]. - Total Revenue for the three months ended September 30, 2025, was $6,394.4 million, a 5.1% increase from $6,083.9 million in the same period last year[31]. - New retail vehicle revenue increased by 2.5% to $2,961.1 million, while used vehicle revenue rose by 5.6% to $2,242.8 million for the same period[29]. - New Vehicles revenue increased by 3.5% to $2,863.0 million, while Used Vehicles revenue increased by 7.5% to $2,196.5 million[31]. - Total revenue for retail commercial trucks fell by 13.6% to $918.6 million for the three months ended September 30, 2025, compared to $1,063.3 million in the same period last year[33]. Profitability Metrics - Net income attributable to common stockholders decreased by 6% to $213.0 million, with earnings per share down 5% to $3.23[2]. - Operating income decreased by 5.9% to $298.7 million for the three months ended September 30, 2025, down from $317.4 million in 2024[20]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was $213.0 million, a decrease of 5.8% from $226.1 million in 2024[20]. - Gross profit for the nine months ended September 30, 2025, was $3,814.7 million, reflecting a 1.7% increase compared to $3,752.5 million in 2024[20]. - Retail automotive gross profit increased by 2.4% to $1,066.3 million, with service and parts gross profit rising by 7.2% to $482.2 million[29]. - Total gross profit for the three months ended September 30, 2025, was $1,042.9 million, reflecting a 3.0% increase from $1,012.1 million in the prior year[31]. - Gross profit from new vehicles declined by 24.6% to $34.7 million for the three months ended September 30, 2025[33]. - Total gross profit for retail commercial trucks was $136.3 million, down 13.2% from $157.1 million in the same period last year[33]. Shareholder Returns - The quarterly dividend was increased by 4.5% to $1.38 per share, representing a forward dividend yield of 3.2%[12]. - The company repurchased 1,086,560 shares, representing 1.6% of outstanding shares, and had a leverage ratio of 1.0x as of September 30, 2025[2][12]. - The company repurchased 48,850 shares at an aggregate purchase price of $8.3 million in Q3 2025[38]. Asset and Liability Management - Total assets as of September 30, 2025, were $17,118.8 million, up from $16,720.9 million at the end of 2024[22]. - Total liabilities decreased to $11,393.5 million as of September 30, 2025, from $11,493.6 million at the end of 2024[22]. - Total long-term debt decreased to $1,571.0 million as of September 30, 2025, from $1,852.0 million at the end of 2024[39]. - The debt to total capitalization ratio improved to 21.5% in Q3 2025 from 26.2% at the end of 2024[39]. Operational Efficiency - Retail automotive same-store gross profit increased by 3%, driven by an 8% increase in same-store service and parts[8]. - EBITDA for the three months ended September 30, 2025, was $357.1 million, down from $367.9 million in 2024[26]. - Selling, general, and administrative expenses for the nine months ended September 30, 2025, totaled $2,727.4 million, a 2.8% increase from $2,652.5 million in 2024[42]. - Selling, general, and administrative expenses to gross profit for the nine months ended September 30, 2025, was 71.5%, an increase of 80 basis points from 70.7% in 2024[42]. Market Trends - Retail commercial truck unit sales decreased by 19% in Q3 2025, with earnings before taxes dropping to $41.5 million from $56.5 million in the prior year[9]. - New retail commercial truck units sold decreased by 20.5% year-over-year to 4,298 units for the three months ended September 30, 2025[33]. - Used retail automotive units saw a significant decline of 5.2% year-over-year, totaling 54,708 for the three months ended September 30, 2025[29]. - Retail Automotive Same-Store Units for New Retail increased by 0.3% to 47,115 units compared to 46,969 units in the previous year[31].