PAG Research | Milton Maxwell

PAG

Penske Automotive Group, Inc.

167.98

+0.06+0.04%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Freight green shoots, soft Q1 flagged

2/10/26Feb 10, 2026

Q&A sketched a soft Q1 2026 from tariff pull-forwards, UK tax comps, and weather, but flagged Q2 strength from tax refunds and summer demand. Freight drew optimism with green shoots—capacity tightening in Chicago and Texas, January orders up 20%—positioning PTS for earnings growth via de-fleeting savings and $10-15 million bad debt cuts. Parts/service targets mid-single-digit same-store growth using AI for older-car owners; used GPUs to rebound via internal sourcing, shunning old cars. Management affirmed premium brand focus in key U.S. markets. Q&A largely reaffirmed prepared remarks. Freight recovery matters most.

Key Stats

Market Cap

11.09B

P/E (TTM)

11.84

Basic EPS (TTM)

14.19

Dividend Yield

0.03%

Recent Filings

10-K

FY2025 results

2/27/26Feb 27, 2026

Penske Automotive posted $31.8B revenue for FY2025 ended December 31, 2025, flat on a constant currency basis despite headwinds, buoyed by service/parts strength while vehicle units softened. Retail automotive drove 86% of topline with $27.5B revenue, new units off 3.9% y/y to 215K (excluding agency), used plunging 11% to 226K on sourcing woes and U.K. reconfiguration, yet service/parts surged 6% to $3.4B with 58% margins. Q4 saw U.S. EV sales stall post-tax credit elimination while U.K. premiums decelerated amid macro pressures; truck retail tanked 15% y/y on freight recession. PTG fixed absorption hit 131%, PTS equity earnings dipped to $193M. $248M remains for buybacks; $2.2B non-vehicle debt. U.K. EV mandates risk profitability.

8-K

Q4 results; dividend raised

2/11/26Feb 11, 2026

Penske Automotive reported Q4 revenue down 3.8% to $7.8B and full-year flat at $31.8B, with net income falling 25% to $186.1M quarterly but resilient service/parts up 5% same-store. Board hiked quarterly dividend 1.4% to $1.40/share, payable March 5 to Feb 25 holders—21st straight rise. Repurchased 1.2M shares; leverage steady at 1.5x.

8-K

Acquires top Toyota/Lexus stores

11/19/25Nov 19, 2025

Penske Automotive Group closed its $519M acquisition of four high-volume Toyota and Lexus dealerships—Longo Toyota, Longo Lexus, Lexus Stevens Creek, and Longo Toyota of Prosper—on November 19, 2025, funded by $364M cash and a $156M 4.5% three-year note. These stores retailed over 28,000 units in 2024, adding $1.5B annualized revenue while expanding in California and Texas. Related-party deal cleared by independent committee. Integration risks loom.

10-Q

Q3 FY2025 results

10/30/25Oct 30, 2025

Penske Automotive nudged revenue up 1.4% y/y to $7.7B in Q3 ended September 30, 2025, yet operating income slipped 5.9% to $298.7M as truck sales sagged amid freight woes; retail automotive held steady while service parts margins climbed to 58.9%. YTD revenue rose 1.0% to $23.0B, operating income up 2.1% to $962.4M, diluted EPS $10.66 edging prior year's $10.20 on 66.3M shares—reconciles cleanly. Cash hit $80.3M, operating cash flow $851.9M outpacing $226.5M capex for positive FCF; repaid $550M notes due 2025, long-term debt now $1.3B net with revolver availability. Solid liquidity persists. Tariffs loom over truck imports.

8-K

Q3 revenue up, income dips

10/29/25Oct 29, 2025

Penske Automotive Group reported Q3 2025 revenue up 1.4% to $7.7 billion, but net income fell 6% to $213 million amid freight market weakness and U.K. challenges, including a cyber incident. Retail automotive same-store revenue rose 5%, with record service and parts at $818.3 million and gross profit up 7%; commercial trucks saw 19% unit sales drop. Repaid $550 million notes, leverage at 1.0x. Strong service margins offset headwinds.

About

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts, as well as distributes diesel and gas engines, and power systems. The company was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan. Penske Automotive Group, Inc. is a subsidiary of Penske Corporation, Inc.

CEO

Mr. Roger S. Penske Sr.

IPO

10/23/1996

Website

https://www.penskeautomotive.com

Employees

28,300

Sector

Consumer Cyclical

Industry

Auto & Truck Dealerships