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Penske Automotive Group (NYSE: PAG) has announced quarterly results for the Q2 of 2025. For the quarter, revenue remained flat at $7.7 billion compared to the same period in 2024. For the quarter, revenue remained flat at $7.7 billion compared to Q2 in 2024. Net income attributable to common stockholders increased 4% to $250.0 million compared to $241.2 million in the prior year period, and related earnings per share increased 5% to $3.78 compared to $3.61 for the same period in 2024. However, PAG posted a record gross profit, which increased by 3% to $1.3 billion.
“I am pleased with the performance of our diversified international transportation services business in the second quarter. The second quarter represented the third consecutive quarter of year-over-year earnings growth driven by an overall gross margin increase of 50 basis points, an increase of 50 basis points in retail automotive service and parts gross margin, and a 30-basis point improvement in selling, general and administrative expenses as a percentage of gross profit,” said Chair Roger Penske.
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“New and used vehicle gross profit per unit retailed remained stable and strong while retail automotive same-store service and parts revenue increased 7%.” Penske continued, “While we continue to monitor the potential impact to our business from tariffs, the benefits provided by our premium brand mix, geographic diversification across the North American retail commercial truck, the U.S. and 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 and commercial truck landscape,” Penske said.
Second Quarter 2025 Compared to Q2 2024
- Retail Automotive Same-Store Revenue – decreased 1%.
- New Vehicle -2%; Used Vehicle -1%; Finance & Insurance -2%; Service & Parts +7%.
- Retail Automotive Same-Store Gross Profit – increased 3%.
- New Vehicle -4%; Used Vehicle +8%; Finance & Insurance -2%; Service & Parts +9%.
- Overall Gross Margin – 16.9%, improved by 50 bps.
- SG&A as a Percentage of Gross Profit – 69.9%, improved by 30 bps.
- New and Used Retail Commercial Truck Units – increased 2%
- New Vehicle +3%; Used Vehicle -8%.
- Retail Commercial Truck Revenue – increased 6%.
For the six months ending June 30, 2025, revenue increased 1% from the same period in 2024 to a record of $15.3 billion. Net income attributable to common stockholders increased 8% to $494.3 million compared to $456.4 million in the prior year period, and related earnings per share increased 9% to $7.44 compared to $6.81 for the same period in 2024. Adjusted net income increased 4% to $476.3 million and adjusted earnings per share increased 5% to $7.17. Foreign currency exchange positively impacted revenue by $96.2 million, net income attributable to common stockholders by $1.1 million, and earnings per share by $0.02.
Retail Commercial Truck Dealerships
As of June 30, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For Q2 ending June 30, retail unit sales increased 2% to 5339 from 5248 but declined 4% on a same-store basis. Revenue increased by 6% to $943.6 million from $892.3 million and was flat on a same-store basis. Earnings before taxes was $54.2 million compared to $51.7 million in the prior year period. For the six months ended June 30, 2025 (H1), revenue increased 5% to $1.8 billion from $1.7 billion and declined 2% on a same-store basis, and earnings before taxes was $99.3 million compared to $102.2 million in H1 2024.
Penske Transportation Solutions
Penske Transportation Solutions (“PTS”) is a provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with more than 414,000 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 and six months ended June 30, 2025, the Company recorded $53.5 million and $86.7 million in earnings compared to $52.9 million and $85.4 million for the same periods in 2024. This came from an increase in revenue from leasing and maintenance, partially offset by a decline in truck rental revenue and lower gain on the sale of used trucks associated with continued weakness in the freight market.
Corporate Development, Capital Allocation, Liquidity, and Leverage
During the six months ending June 30, 2025, the Company repurchased 885,272 shares of common stock, or approximately 1.3% of its outstanding shares, consisting of 750,679 shares of common stock for approximately $111.2 million under its securities repurchase program and 134,593 shares of our common stock for $22.1 million from employees in connection with a net share settlement feature of employee equity awards. On 14 May 2025, the Board of Directors delegated to management an additional $250 million in securities repurchase authority. As of June 30, 2025, $295.7 million remained outstanding and available for repurchases under our securities repurchase program. As of June 30, 2025, the Company had a ~$2.3 billion in liquidity, including $155 million in cash and $2.2 billion of availability under its U.S. and international credit agreements. The Company’s leverage ratio at June 30, 2025 was 1.2x.
Also, the Board of Directors approved an increase in the quarterly dividend of 4.8%, or $0.06 per share, to $1.32 per share representing a forward dividend yield of 3.1%. The increase represents the Company’s 19th consecutive quarterly increase. On a trailing twelve-month basis, the dividend payout ratio is 34.7%. The dividend is payable 3 September 2025, to shareholders of record as of August 15, 2025.
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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 Posts Record $1.3B Q2 Gross Profit
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Penske Automotive Group (NYSE: PAG) has announced quarterly results for the Q2 of 2025. For the quarter, revenue remained flat at $7.7 billion compared to the same period in 2024. For the quarter, revenue remained flat at $7.7 billion compared to Q2 in 2024. Net income attributable to common stockholders increased 4% to $250.0 million compared to $241.2 million in the prior year period, and related earnings per share increased 5% to $3.78 compared to $3.61 for the same period in 2024. However, PAG posted a record gross profit, which increased by 3% to $1.3 billion.
“I am pleased with the performance of our diversified international transportation services business in the second quarter. The second quarter represented the third consecutive quarter of year-over-year earnings growth driven by an overall gross margin increase of 50 basis points, an increase of 50 basis points in retail automotive service and parts gross margin, and a 30-basis point improvement in selling, general and administrative expenses as a percentage of gross profit,” said Chair Roger Penske.
Click to enlarge.
“New and used vehicle gross profit per unit retailed remained stable and strong while retail automotive same-store service and parts revenue increased 7%.” Penske continued, “While we continue to monitor the potential impact to our business from tariffs, the benefits provided by our premium brand mix, geographic diversification across the North American retail commercial truck, the U.S. and 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 and commercial truck landscape,” Penske said.
Second Quarter 2025 Compared to Q2 2024
For the six months ending June 30, 2025, revenue increased 1% from the same period in 2024 to a record of $15.3 billion. Net income attributable to common stockholders increased 8% to $494.3 million compared to $456.4 million in the prior year period, and related earnings per share increased 9% to $7.44 compared to $6.81 for the same period in 2024. Adjusted net income increased 4% to $476.3 million and adjusted earnings per share increased 5% to $7.17. Foreign currency exchange positively impacted revenue by $96.2 million, net income attributable to common stockholders by $1.1 million, and earnings per share by $0.02.
Retail Commercial Truck Dealerships
As of June 30, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For Q2 ending June 30, retail unit sales increased 2% to 5339 from 5248 but declined 4% on a same-store basis. Revenue increased by 6% to $943.6 million from $892.3 million and was flat on a same-store basis. Earnings before taxes was $54.2 million compared to $51.7 million in the prior year period. For the six months ended June 30, 2025 (H1), revenue increased 5% to $1.8 billion from $1.7 billion and declined 2% on a same-store basis, and earnings before taxes was $99.3 million compared to $102.2 million in H1 2024.
Penske Transportation Solutions
Penske Transportation Solutions (“PTS”) is a provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with more than 414,000 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 and six months ended June 30, 2025, the Company recorded $53.5 million and $86.7 million in earnings compared to $52.9 million and $85.4 million for the same periods in 2024. This came from an increase in revenue from leasing and maintenance, partially offset by a decline in truck rental revenue and lower gain on the sale of used trucks associated with continued weakness in the freight market.
Corporate Development, Capital Allocation, Liquidity, and Leverage
During the six months ending June 30, 2025, the Company repurchased 885,272 shares of common stock, or approximately 1.3% of its outstanding shares, consisting of 750,679 shares of common stock for approximately $111.2 million under its securities repurchase program and 134,593 shares of our common stock for $22.1 million from employees in connection with a net share settlement feature of employee equity awards. On 14 May 2025, the Board of Directors delegated to management an additional $250 million in securities repurchase authority. As of June 30, 2025, $295.7 million remained outstanding and available for repurchases under our securities repurchase program. As of June 30, 2025, the Company had a ~$2.3 billion in liquidity, including $155 million in cash and $2.2 billion of availability under its U.S. and international credit agreements. The Company’s leverage ratio at June 30, 2025 was 1.2x.
Also, the Board of Directors approved an increase in the quarterly dividend of 4.8%, or $0.06 per share, to $1.32 per share representing a forward dividend yield of 3.1%. The increase represents the Company’s 19th consecutive quarterly increase. On a trailing twelve-month basis, the dividend payout ratio is 34.7%. The dividend is payable 3 September 2025, to shareholders of record as of August 15, 2025.
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.