Penske Automotive (US:PAG)2025-10-30 20:11Revenue and Profit - Total revenue for the nine months ended September 30, 2025, was $23.0 billion, with $19.7 billion from retail automotive dealerships, $2.7 billion from retail commercial truck dealerships, and $619.3 million from commercial vehicle distribution and other operations[123]. - Gross profit for the same period was $3.8 billion, comprising $3.3 billion from retail automotive dealerships, $420.9 million from retail commercial truck dealerships, and $134.9 million from commercial vehicle distribution and other operations[123]. - Retail automotive dealerships accounted for 85.6% of total revenues and 85.4% of total gross profit during the nine months ended September 30, 2025[126]. - Retail commercial truck dealerships, specifically the Premier Truck Group, represented 11.7% of total revenues and 11.0% of total gross profit for the same period[127]. - Total revenue increased by $104.5 million, or 1.4%, and gross profit increased by $5.9 million, or 0.5%, for the three months ended September 30, 2025, compared to the same period in 2024[145]. - Foreign currency fluctuations contributed an increase of $92.8 million in revenue and $13.4 million in gross profit for the three months ended September 30, 2025[146]. Sales Performance - The U.S. industry new light vehicle sales increased 4.3% to 12.3 million units during the nine months ended September 30, 2025, with retail sales up 5.0%[137]. - New retail unit sales (excluding agency) decreased by 714 units, or 1.4%, to 48,809 units for the three months ended September 30, 2025[159]. - Same-store new retail unit sales (excluding agency) increased by 146 units, or 0.3%, to 47,115 units for the same period[159]. - Retail unit deliveries of new vehicles increased by 6.4% in the U.S. but decreased by 5.2% internationally, with same-store retail units delivered increasing by 8.9% in the U.S.[160]. - New retail unit sales (excluding agency) decreased by 2,094 units, or 1.4%, from 2024 to 2025, totaling 146,957 units[195]. - Same-store new retail unit sales (excluding agency) fell by 1,425 units, or 1.0%, totaling 141,674 units[195]. Vehicle Sales and Backlog - North American sales of Class 6-8 medium- and heavy-duty trucks decreased 11.4% year-over-year to 309,294 units during the nine months ended September 30, 2025[138]. - The Class 6-8 medium- and heavy-duty truck backlog was 136,527 units as of September 30, 2025, down from 190,602 units a year earlier, reflecting a decrease of 3.1% since the prior quarter[139]. - New commercial truck retail sales revenue decreased by $134.5 million, or 17.8%, from 2024 to 2025, primarily due to a decrease in same-store new retail unit sales[175]. Expenses and Financials - Total selling, general, and administrative (SG&A) expenses increased by $22.3 million, or 2.5%, from 2024 to 2025, with same-store SG&A expenses rising by $31.2 million, or 3.6%[188]. - Depreciation increased by $2.3 million, or 5.7%, from 2024 to 2025, due to capital expenditures and net dealership acquisitions[190]. - Floor plan interest expense decreased by $7.6 million, or 15.5%, from 2024 to 2025, due to lower applicable rates and reduced inventory levels[191]. - Income taxes increased by $1.3 million, or 1.7%, from 2024 to 2025, despite a decrease in pre-tax income, with an effective tax rate of 26.9%[194]. Cash Flow and Dividends - Net cash provided by operating activities decreased to $851.9 million for the nine months ended September 30, 2025, from $962.1 million in 2024, a decline of $110.2 million[251][253]. - Cash dividends paid to stockholders increased to $252.7 million for the nine months ended September 30, 2025, compared to $194.7 million in 2024[260]. - The company announced a cash dividend of $1.38 per share, payable on December 2, 2025, reflecting a consistent dividend policy[238]. Market Conditions and Risks - The company has experienced higher rates of inflation affecting vehicle prices, parts costs, and employee wages, which may adversely impact consumer demand[272]. - The automotive retail and commercial vehicle industries are influenced by macro-economic conditions, including consumer confidence and discretionary spending levels[275]. - The company is subject to risks from tariffs and trade restrictions that may increase vehicle and parts costs, affecting gross profit[276]. - Changes in foreign currency exchange rates may materially and adversely impact the company's future results[283].