PENSKE AUTOMOTIVE GROUP REPORTS QUARTERLY RESULTS

Core Insights - Penske Automotive Group reported a record gross profit of $1.3 billion, reflecting a 3% increase year-over-year [1] - The company achieved a 4% increase in earnings before taxes to $337 million and a 5% increase in earnings per share to $3.78 [1] - Revenue remained flat at $7.7 billion compared to the same period in 2024, with net income attributable to common stockholders increasing by 4% to $250 million [1][3] Financial Performance - For the second quarter of 2025, total revenue was $7.7 billion, unchanged from the previous year, while net income rose to $250 million from $241.2 million [1][3] - Earnings per share increased to $3.78 from $3.61, driven by a positive impact from foreign currency exchange of $136.6 million [1][3] - For the first half of 2025, revenue increased by 1% to $15.3 billion, with net income rising 8% to $494.3 million [3][4] Retail Automotive Operations - Retail automotive same-store revenue decreased by 1%, with new vehicle sales down 2% and used vehicle sales down 1% [5][6] - Retail automotive gross profit increased by 3% to $1.1 billion, driven by a 9% increase in service and parts revenue [6][7] - Total new units delivered decreased by 6%, while used units delivered decreased by 16% [4][20] Retail Commercial Truck Dealerships - Retail commercial truck revenue increased by 6% to $943.6 million, with retail unit sales rising 2% [8][19] - For the first half of 2025, revenue from retail commercial trucks increased by 5% to $1.8 billion [8][19] Penske Transportation Solutions - Penske Transportation Solutions recorded earnings of $53.5 million for the second quarter, up from $52.9 million in the previous year [9] - The company operates a managed fleet of over 414,000 trucks, tractors, and trailers [9] Share Repurchase and Capital Allocation - The company repurchased 885,272 shares of common stock in the first half of 2025, representing approximately 1.3% of its outstanding shares [10] - As of June 30, 2025, the company had approximately $2.3 billion in liquidity, including $155 million in cash [10] Corporate Developments - The company completed the acquisition of a Ferrari dealership in Italy, expected to generate annualized revenue of $40 million [11] - The Board of Directors approved a 4.8% increase in the quarterly dividend to $1.32 per share, marking the 19th consecutive quarterly increase [11]