Penske Automotive (US:PAG)2026-02-11 16:54Financial Performance - Q4 2025 revenue was $7.8 billion, a decrease of 3.7% from $8.1 billion in Q4 2024; net income attributable to common stockholders was $186.1 million, down 25.3% from $249.3 million in the prior year[2]. - For the full year 2025, revenue remained flat at $31.8 billion compared to 2024; net income attributable to common stockholders decreased 4% to $935.4 million from $968.9 million[3]. - Revenue for Q4 2025 was $7,769.2 million, a decrease of 3.8% compared to $8,077.6 million in Q4 2024[20]. - Gross profit for Q4 2025 was $1,243.8 million, down 5.3% from $1,313.1 million in Q4 2024[20]. - Operating income decreased by 20.8% to $275.0 million in Q4 2025 from $347.3 million in Q4 2024[20]. - Net income attributable to common stockholders for Q4 2025 was $186.1 million, a decline of 25.4% compared to $249.3 million in Q4 2024[20]. - Total revenue for the twelve months ended December 31, 2025, was $31,808.5 million, a slight decrease from $31,864.8 million in 2024[45]. - Earnings Per Share for the twelve months ended December 31, 2025, was $14.13, down from $14.49 in 2024[47]. Unit Sales and Deliveries - Total new units delivered in Q4 2025 decreased by 10%, with an 8% decline in the U.S. and a 14% decline internationally; used units delivered decreased by 6%[5]. - New retail automotive units decreased by 12.9% year-over-year to 52,907 for the three months ended December 31, 2025, and by 3.9% to 215,536 for the twelve months ended December 31, 2025[29]. - Retail Automotive Same-Store Units decreased by 7.6% to 104,427 for the three months ended December 31, 2024, compared to 112,980 in the prior year[31]. - Retail Commercial Truck new vehicle sales decreased by 14.4% to 3,034 units in Q4 2025 compared to 3,544 units in Q4 2024[33]. - Retail Commercial Truck same-store total units decreased by 14.6% year-over-year to 3,783 for the three months ended December 31, 2025, and by 11.2% to 17,728 for the twelve months ended December 31, 2025[35]. Revenue Breakdown - Retail automotive revenue for the full year was consistent with the prior year at $27.5 billion, while total retail automotive gross profit increased 1% to $4.5 billion[6]. - Retail automotive revenue for Q4 2025 was $6,740.5 million, down from $7,079.8 million in Q4 2024[25]. - New vehicle revenue decreased by 10.6% to $3,221.3 million for the three months ended December 31, 2025, while used vehicle revenue increased by 1.2% to $2,118.6 million[29]. - Total revenue for the three months ended December 31, 2025, was $724.5 million, a decrease of 6.2% compared to $772.5 million in the same period of 2024[35]. - Total revenue for Retail Commercial Truck operations declined by 6.2% to $725.4 million in Q4 2025 from $773.7 million in Q4 2024[33]. Profitability Metrics - The gross margin for retail automotive was 15.8% in Q4 2025, slightly down from 15.9% in Q4 2024[25]. - EBITDA for Q4 2025 was $326.0 million, a decrease from $393.6 million in Q4 2024[26]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $1,459.2 million, compared to $1,485.7 million in 2024[26]. - Total gross profit for the three months ended December 31, 2025, was $121.2 million, reflecting an 11.7% decline from $137.2 million in 2024[35]. - The overall gross margin for Retail Commercial Truck operations decreased by 110 basis points to 16.7% in Q4 2025 from 17.8% in Q4 2024[33]. Shareholder Returns and Capital Management - The company repurchased 1,178,411 shares in 2025, representing approximately 1.8% of outstanding shares[1]. - The board declared an increase in cash dividend to $1.40 per share, marking the 21st consecutive quarterly increase, with a forward dividend yield of 3.4%[11]. - Dividends paid increased to $91.1 million for the three months ended December 31, 2025, compared to $79.7 million in 2024, and totaled $343.8 million for the twelve months, up from $274.4 million[38]. - Cash paid for acquisitions was $21.5 million for the twelve months ended December 31, 2025, significantly lower than $786.2 million in 2024[38]. Debt and Liquidity - As of December 31, 2025, the company had approximately $1.6 billion in liquidity, including $65 million in cash and $1.5 billion available under credit agreements[11]. - Total Long-Term Debt increased to $2,165.5 million from $1,852.0 million, resulting in a Debt to Total Capitalization Ratio of 28.0%[39]. - The Leverage Ratio increased to 1.5x in 2025 from 1.2x in 2024[39]. - Cash and Cash Equivalents decreased to $64.7 million from $83.6 million year-over-year[39].