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Penske Q2 Earnings Surpass Expectations, Revenues Decline Y/Y
Penske Automotive Penske Automotive (US:PAG) ZACKSยท2025-08-04 18:16

Core Insights - Penske Automotive Group (PAG) reported second-quarter 2025 adjusted earnings of $3.78 per share, a 4.7% increase year over year, surpassing the Zacks Consensus Estimate of $3.56 [1][10] - The company achieved net sales of $7.66 billion, which fell short of the Zacks Consensus Estimate of $7.87 billion, representing a 0.4% decline from the previous year [1][10] Financial Performance - Gross profit for the quarter rose 2.6% year over year to $1.30 billion, while operating income increased by 3% to $348.2 million [2] - SG&A costs totaled $906.3 million, reflecting a 2.1% year-over-year increase [7] - As of June 30, 2025, cash and cash equivalents stood at $155.3 million, up from $72.4 million at the end of 2024, with long-term debt reduced to $906.7 million from $1.13 billion [7] Segment Performance - Retail Automotive segment revenues decreased by 1.5% to $6.52 billion, missing estimates, with total new and used vehicle deliveries down 11.9% year over year to 102,545 units [4] - Retail Commercial Truck segment revenues increased by 5.7% to $943.6 million, exceeding estimates, although gross profit slightly declined [5] - The Commercial Vehicle Distribution and Other segment saw revenues rise by 6.5% to $201.2 million, surpassing estimates, but gross profit fell short of expectations [6] Shareholder Returns - PAG repurchased 630,044 shares for $93.3 million, with $295.7 million remaining in stock repurchase authorization as of June 30, 2025 [8] - The quarterly dividend was increased by 6 cents to $1.32 per share, marking the 19th consecutive quarterly increase, payable on September 3, 2025 [8]