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Penske Automotive Group (NYSE: PAG)* today posted Q1 2025 financial results that showed record first quarter revenue with an increase of 2% to $7.6 Billion. Adjusted earnings before taxes increased 5% to $310 Million. Adjusted earnings per share increased 6% to $3.39.
“Our diversified international transportation services business generated record first quarter revenue, the seventh consecutive quarter of stable gross margin, and a 70-basis point improvement of adjusted selling, general, and administrative expenses as a percentage of gross profit. New and used vehicle gross profit per unit retailed remained consistent and strong with new vehicle gross declining only $87 per unit while used vehicle gross increased $352 per unit when compared to the fourth quarter of 2024,” said Chair Roger Penske.
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“I was also pleased to see retail automotive service and parts gross margin improve by 60 basis points when compared to the first quarter of 2024. We continue to monitor the potential impact to our business from tariffs. As we look across our business, the benefits provided by our premium brand mix, geographic diversification across the North American retail commercial truck, Australian/New Zealand commercial vehicle and power systems, and the international automotive markets, and the diversification of our gross profit across new and used vehicles, service and parts, and finance and insurance, coupled with our highly variable cost structure, provide us with opportunities to flex our business to meet the changing automotive landscape,” said Penske.
First Quarter 2025 Operating Highlights Compared to First Quarter 2024
- Retail Automotive Same-Store Revenue – increased 2%
- New Vehicle +7%; Used Vehicle -3%; Finance & Insurance -1%; Service & Parts +4%
- Retail Automotive Same-Store Gross Profit – increased 3%
- New Vehicle +1%; Used Vehicle -2%; Finance & Insurance -1%; Service & Parts +6%
- Selling, General, and Administrative Expenses as a Percentage of Gross Profit of 72.0%; Adjusted Selling, General, and Administrative Expenses as a Percentage of Gross Profit of 70.0% improves by 70 bps
- New and Used Retail Commercial Truck Units – increased 4%
- New Vehicle +7%; Used Vehicle -7%
- Retail Commercial Truck Same-Store Revenue – decreased 3%
- New Vehicle -3%; Used Vehicle flat; Finance & Insurance -25%; Service & Parts -4%
Retail Automotive Dealerships
For the three months ended March 31, 2025, total new units delivered increased 6%. However, used units delivered decreased 16%, consisting of a 2% increase in the U.S. and a 28% decrease internationally. The decrease internationally was attributed to a realignment of the Company’s U.K. used only dealerships to Sytner Select which focuses on retailing fewer units at better margin and lower costs. Excluding the performance of the U.K. Sytner Select dealerships in both periods, used units delivered decreased 1%. Total retail automotive revenue increased 1% to $6.6 billion and increased 2% on a same-store basis, driven by a 4% increase in same-store service and parts. Total retail automotive gross profit increased 3% to $1.1 billion, and same-store gross profit increased 3%, driven by a 6% increase in same-store service and parts.
Retail Commercial Truck Dealerships
As of March 31, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For the three months ended March 31, 2025, retail unit sales increased 4% to 4714 from 4540 but declined 4% on a same-store basis. Revenue was $823.7 million and earnings before taxes was $45.1 million which compares to revenue of $791.8 million and earnings before taxes of $50.5 million in the prior year period. The decline in earnings is attributable to what PAG calls “the continuing soft freight environment.”
Penske Transportation Solutions Investment
Penske Transportation Solutions (PTS) is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with more than 428,000 trucks, tractors, and trailers under lease, rental and/or maintenance contracts. Penske Automotive Group has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. For the three months ended March 31, 2025, PTS recorded $33.2 million in earnings compared to $32.5 million for the same period in 2024, driven by an increase in revenue from leasing and maintenance business, partially offset by the continued decline in truck rental revenue and lower gain on sale of used trucks also associated with weakness in the freight market.
Corporate Development, Capital Allocation, Liquidity, Leverage
During the three months ended March 31, 2025, PAG repurchased 254,406 shares of common stock for approximately $39.9 million under its securities repurchase program. It also acquired 822 shares of common stock for $0.1 million from employees in connection with a net share settlement feature of employee equity awards. From April 1, 2025, through April 25, 2025, the PAG repurchased an additional 495,570 shares for an aggregate purchase price of $71.2 million. As of April 25, 2025, $45.8 million remained available under the Company’s existing repurchase authority. As of March 31, 2025, the Company had approximately $2.1 billion in liquidity, including $118 million in cash and $2.0 billion of availability under its U.S. and international credit agreements. The Company’s leverage ratio at March 31, 2025 was 1.2x.
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About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Penske Automotive Group – Q1 2025 +13% Net Income
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Penske Automotive Group (NYSE: PAG)* today posted Q1 2025 financial results that showed record first quarter revenue with an increase of 2% to $7.6 Billion. Adjusted earnings before taxes increased 5% to $310 Million. Adjusted earnings per share increased 6% to $3.39.
“Our diversified international transportation services business generated record first quarter revenue, the seventh consecutive quarter of stable gross margin, and a 70-basis point improvement of adjusted selling, general, and administrative expenses as a percentage of gross profit. New and used vehicle gross profit per unit retailed remained consistent and strong with new vehicle gross declining only $87 per unit while used vehicle gross increased $352 per unit when compared to the fourth quarter of 2024,” said Chair Roger Penske.
Click for more.
“I was also pleased to see retail automotive service and parts gross margin improve by 60 basis points when compared to the first quarter of 2024. We continue to monitor the potential impact to our business from tariffs. As we look across our business, the benefits provided by our premium brand mix, geographic diversification across the North American retail commercial truck, Australian/New Zealand commercial vehicle and power systems, and the international automotive markets, and the diversification of our gross profit across new and used vehicles, service and parts, and finance and insurance, coupled with our highly variable cost structure, provide us with opportunities to flex our business to meet the changing automotive landscape,” said Penske.
First Quarter 2025 Operating Highlights Compared to First Quarter 2024
Retail Automotive Dealerships
For the three months ended March 31, 2025, total new units delivered increased 6%. However, used units delivered decreased 16%, consisting of a 2% increase in the U.S. and a 28% decrease internationally. The decrease internationally was attributed to a realignment of the Company’s U.K. used only dealerships to Sytner Select which focuses on retailing fewer units at better margin and lower costs. Excluding the performance of the U.K. Sytner Select dealerships in both periods, used units delivered decreased 1%. Total retail automotive revenue increased 1% to $6.6 billion and increased 2% on a same-store basis, driven by a 4% increase in same-store service and parts. Total retail automotive gross profit increased 3% to $1.1 billion, and same-store gross profit increased 3%, driven by a 6% increase in same-store service and parts.
Retail Commercial Truck Dealerships
As of March 31, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For the three months ended March 31, 2025, retail unit sales increased 4% to 4714 from 4540 but declined 4% on a same-store basis. Revenue was $823.7 million and earnings before taxes was $45.1 million which compares to revenue of $791.8 million and earnings before taxes of $50.5 million in the prior year period. The decline in earnings is attributable to what PAG calls “the continuing soft freight environment.”
Penske Transportation Solutions Investment
Penske Transportation Solutions (PTS) is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with more than 428,000 trucks, tractors, and trailers under lease, rental and/or maintenance contracts. Penske Automotive Group has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. For the three months ended March 31, 2025, PTS recorded $33.2 million in earnings compared to $32.5 million for the same period in 2024, driven by an increase in revenue from leasing and maintenance business, partially offset by the continued decline in truck rental revenue and lower gain on sale of used trucks also associated with weakness in the freight market.
Corporate Development, Capital Allocation, Liquidity, Leverage
During the three months ended March 31, 2025, PAG repurchased 254,406 shares of common stock for approximately $39.9 million under its securities repurchase program. It also acquired 822 shares of common stock for $0.1 million from employees in connection with a net share settlement feature of employee equity awards. From April 1, 2025, through April 25, 2025, the PAG repurchased an additional 495,570 shares for an aggregate purchase price of $71.2 million. As of April 25, 2025, $45.8 million remained available under the Company’s existing repurchase authority. As of March 31, 2025, the Company had approximately $2.1 billion in liquidity, including $118 million in cash and $2.0 billion of availability under its U.S. and international credit agreements. The Company’s leverage ratio at March 31, 2025 was 1.2x.
AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.